What is a Gold Custodian?

Spread the love

gold custodians

Gold Custodians is financial institutions or individuals that keep possession of the shares in different gold mining companies as well as other gold assets. The main purpose of a Gold Custodian is to purchase, store and insure the shares of gold held by these companies. As most people do not understand, Gold Custodians has the same legal rights of ownership as the actual gold mining company and the physical gold itself. The only difference between Gold Custodians and the gold mining companies is that they invest in gold for the long-term and not just as a stock.

There are mainly two types of gold custodians; the first one being the depository and the other being the custody institution. A depository acts as an intermediary between the actual gold reserves of the company and the buyers. A Custodian bank keeps a record of all the accounts and transactions regarding these assets, including the buyer’s details and any deliveries/couries that need to be received. All the records are kept in the custody depository and are accessible by the company directors and shareholders on request.

Many people are also unaware that the physical location of the depository and the custody depository can fluctuate greatly, depending on political and economic conditions all over the world. Gold prices go up and down all the time and custodians cannot always guarantee to deliver their assets on time, so they would need to keep a constant level of activity going on. The physical location of the gold custodians’ offices may also fluctuate, as it may be necessary to relocate some of the operations to minimize the effects of any natural disasters that may affect the delivery of assets.

Leave a Reply

Your email address will not be published. Required fields are marked *

16 + fourteen =