Physical delivery is the stage where precious-metal ownership becomes a logistics operation.
Before delivery, a holding can exist as allocated metal inside a secured custody environment.
Once a withdrawal instruction is accepted, the metal must be identified, released, transported and received under controlled procedures.
This is why logistics are part of settlement rather than an unrelated service added at the end.
The process begins with an instruction
Delivery starts when the client chooses to remove allocated metal from storage or directs delivery as part of the original purchase.
The custodian or dealing desk needs clear instructions defining what metal is being released and where it is going.
Before the metal moves, the relevant records must be reconciled.
The physical product being released should correspond with the applicable holding and withdrawal instruction.
Preparation comes before transport
A professional delivery process involves more than putting a bar into ordinary packaging.
Depending on the product and arrangement, preparation can involve:
● identifying the correct bullion;
● confirming serial numbers where applicable;
● reconciling inventory records;
● securely packaging the metal;
● preparing shipping or collection documentation;
● arranging insured transport.
The objective is to preserve the connection between the identified metal and the client instruction throughout the transfer.
Insured shipment
One delivery option can be insured shipment.
Insurance is important because precious metal represents concentrated physical value.
If the product is being transported from one controlled location to another, the transport arrangement needs to account for the risk of physical loss or damage during that period.
The exact insurance terms and carrier procedures depend on the transaction and service used.
Educationally, the important distinction is that the security environment changes once metal leaves the vault.
Armoured collection
For certain transactions, secure armoured collection can be used instead of conventional insured shipment.
This type of logistics is designed for valuable physical assets requiring controlled movement.
Alloy Capital Commodities identifies insured armoured collection as one of the available paths within its described physical settlement process.
The purpose is straightforward: protect the asset during the stage when it is no longer stationary inside the vault but has not yet reached its destination.
T+1 to T+3 delivery
The Alloy Capital settlement sequence describes stored or delivered metal following allocation, with physical delivery generally occurring within T+1 to T+3 under the stated process.
That timeline reflects the fact that allocation and transportation are separate stages.
Metal can be allocated on T+0 while the actual movement requires additional time for secure release and logistics.
Receipt completes the physical journey
The final stage is receipt.
At this point, the metal has moved from dealer inventory through trade confirmation, payment, allocation and transport to its destination.
The client should be able to connect what was received with the transaction and product documentation.
The complete physical sequence is therefore:
Firm price → Trade confirmation → Funds confirmed → T+0 allocation → Withdrawal or delivery instruction → Secure preparation → Insured shipment or armoured collection → T+1 to T+3 delivery → Final receipt
Why logistics belong inside settlement
A physical bullion transaction cannot be considered purely abstract once delivery has been requested.
The asset has weight, dimensions and value. Someone must secure it, document it and physically move it.
That reality is one of the clearest differences between direct ownership of precious metal and purely financial exposure.
In physical markets, settlement ultimately has to answer not only who owns the metal, but also where the metal is and how it reaches its final destination.
