What is gold locked?

Gold locked refers to gold that is stored in a secure facility, such as a vault, and is not readily accessible or transferable. This often happens when an investor or institution takes physical possession of gold or invests in a gold-backed security, such as a gold ETF or mutual fund.

Once the gold is locked, it is typically held for a long-term investment strategy, as there are fees and logistical challenges associated with moving or selling the gold. The benefits of holding gold in a locked facility include security, reduced risk of theft, and protection from inflation or market downturns.

Gold locked can also refer to gold that is part of a collateral or reserve requirement for loans or other financial transactions. In these cases, the gold is pledged as security, but remains locked in a designated facility until the terms of the loan or transaction are met.