Vault Receipt

A vault receipt, less glamorously known as a warehouse receipt, is a document used to show the ownership, transfer, or delivery of highly valued goods...the kind you would find in a vault. Rubies, gold bars...you’ve seen ‘em in the movies.

The vault receipt shows who owns what, and can be used to transfer ownership without ever touching the precious metals and commodities, making it easier on the transferer, the transferee, and the vault guardians. Kind of like title insurance on a house.

For instance, a vault receipt can be used to transfer goods via a futures contract upon delivery. (See: Futures Contract.) People dealing in vault receipts likely have their broker doing it for them, so they probably never even touch an actual vault receipt. So many levels removed.