Custodian
A Custodian in precious metals trading is a trusted financial institution or bank that safely stores and protects physical precious metals (like gold, silver, or platinum) on behalf of investors or trading companies. Think of them like a highly secure bank vault service specifically for valuable metals. They make sure these valuable assets are properly stored, insured, tracked, and transferred when needed. Custodians play a vital role because they offer the security and trust needed in precious metal investments, especially when dealing with large quantities of valuable materials. Some well-known examples include Brinks, Loomis, and major banks with precious metal custody services.
Examples in Resumes
Managed relationships with Custodian banks for $500M worth of precious metals
Coordinated precious metal transfers between Custodians across international locations
Implemented new Custodial reporting systems for gold and silver holdings
Typical job title: "Precious Metal Custodians"
Also try searching for:
Where to Find Precious Metal Custodians
Professional Associations
Industry Networks
Example Interview Questions
Senior Level Questions
Q: How would you handle a major discrepancy in physical precious metal counts versus system records?
Expected Answer: A senior custodian should explain the step-by-step reconciliation process, including immediate security protocols, documentation requirements, stakeholder communication, and investigation procedures. They should also discuss preventive measures for the future.
Q: What experience do you have with international precious metal transfers and related regulations?
Expected Answer: Should demonstrate knowledge of international shipping procedures, insurance requirements, customs regulations, and coordination between different custody locations. Should mention experience with documentation and compliance requirements.
Mid Level Questions
Q: Explain the process of accepting a new precious metal deposit into custody.
Expected Answer: Should describe verification procedures, weighing processes, documentation requirements, storage protocols, and updating inventory systems. Should also mention client communication and security measures.
Q: How do you ensure proper segregation of different clients' metals in storage?
Expected Answer: Should explain tracking systems, physical segregation methods, labeling procedures, and regular auditing processes to maintain accurate client ownership records.
Junior Level Questions
Q: What security measures are important when handling precious metals?
Expected Answer: Should mention basic security protocols like dual control, camera systems, secure access procedures, and proper documentation of all movements and transactions.
Q: How do you verify the authenticity of precious metals?
Expected Answer: Should be able to describe basic testing methods, verification of hallmarks, weight checking, and when to involve professional assayers.
Experience Level Indicators
Junior (0-2 years)
- Basic precious metal handling and storage procedures
- Understanding of security protocols
- Documentation and record keeping
- Basic inventory management
Mid (2-5 years)
- Precious metal transfer procedures
- Client relationship management
- Audit preparation and support
- Team coordination
Senior (5+ years)
- International custody operations management
- Risk management and compliance
- Strategic planning and process improvement
- Crisis management and problem resolution
Red Flags to Watch For
- Lack of understanding of basic security protocols
- Poor attention to detail in documentation
- No experience with inventory management systems
- Unfamiliarity with precious metals handling procedures
