The consignment stock system operates both domestically and internationally. A bullion dealer or semi-fabricator may place a consignment stock with a number of local jewellery manufacturers, who take the gold as they require it, thus keeping down their own inventories.

On the international level, banks and bullion houses will maintain consignment stocks of bars with banks in regional markets, such as Dubai, Singapore or Hong Kong, from which clients there can buy and take immediate delivery of gold when they require it. In Dubai, bars may be released by depositories on an ‘unfixed’ basis – that is, they have not been priced. The consignment stock can be replenished as need be. In practice, it enables the dealer to have gold, of which he is still the owner, available in many centres for immediate delivery. The consignment stock will be part of his own, hedged, position. See also Conto Deposito.