Unallocated Storage
Unallocated Storage is a common way of holding precious metals like gold and silver in trading accounts. It's similar to having money in a bank account, but instead of dollars, you're dealing with precious metals. When someone has "unallocated storage," they own a portion of metal that isn't physically set aside just for them - it's part of a larger pool. This is cheaper than allocated storage (where specific bars or coins are reserved for each client) because the storage provider doesn't have to handle individual pieces. It's like having a claim to a certain amount of gold or silver without owning specific bars.
Examples in Resumes
Managed Unallocated Storage accounts totaling over $50M in precious metals
Implemented new Unallocated Storage tracking systems for precious metal trading desk
Handled client transitions between Unallocated Storage and allocated metal accounts
Typical job title: "Precious Metal Traders"
Also try searching for:
Where to Find Precious Metal Traders
Professional Networks
Industry Resources
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where there's a discrepancy between the unallocated metal balance and the physical inventory?
Expected Answer: Should demonstrate understanding of reconciliation processes, risk management procedures, and client communication protocols. Should mention documentation requirements and regulatory reporting obligations.
Q: Explain how you would manage counterparty risk in unallocated metal trading?
Expected Answer: Should discuss diversification of storage providers, understanding of provider credit ratings, insurance coverage, and regular auditing procedures.
Mid Level Questions
Q: What are the main differences between allocated and unallocated storage, and when would you recommend each to a client?
Expected Answer: Should explain cost differences, risk levels, accessibility, and typical client needs that would suit each storage type. Should mention practical examples.
Q: How do you calculate storage fees for unallocated metals?
Expected Answer: Should explain basic fee structures, industry standards for charging, and how fees differ from allocated storage. Should mention factors affecting pricing.
Junior Level Questions
Q: What is unallocated storage and how does it work?
Expected Answer: Should be able to explain the basic concept of pool ownership, how clients' metal is tracked, and basic advantages over allocated storage.
Q: How do you process a client request to convert unallocated metal to allocated?
Expected Answer: Should describe the basic steps of the conversion process, necessary documentation, and standard timeframes.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of precious metals trading
- Knowledge of storage types and differences
- Client account management basics
- Understanding of basic market terminology
Mid (2-5 years)
- Complex trading operations
- Risk management
- Client portfolio management
- Storage provider relationships
Senior (5+ years)
- Strategic metal portfolio management
- Advanced risk mitigation
- Regulatory compliance expertise
- Team leadership and market analysis
Red Flags to Watch For
- Lack of understanding about basic metal trading concepts
- No knowledge of storage fee structures
- Unfamiliarity with regulatory requirements
- Poor understanding of risk management principles
Related Terms
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