What is a Precious Metal Trader? Understanding Metals Trading

The charm of precious metals appeals to traders just as much as it does to jewellers and bankers. Working in the commodities trading industry is possible with a position as a metal trader. This dynamic and stimulating environment offers a variety of professional prospects for someone with an analytical mindset and the ability to study and respond to the metals trading markets.


A metal trader must appreciate a fast-paced atmosphere, be a team player while still being able to work alone and make crucial decisions that could represent the difference between a client’s profit and loss. Having prior experience may be necessary, but depending on the position, having a financial background and solid math knowledge may be enough to get you started as a metals trader.


In this article, we will discover all there is to know about precious metals, including the various kinds and how to buy them.


What is a precious metal trader?


A metal trader is, in essence, a business that engages in the professional purchase and selling of precious metals, primarily gold, as well as the sale of other less expensive metals like silver, platinum, copper, palladium, etc. that are still attractive to people looking to protect their money.


However, the operations performed by the metal dealing business can be mistaken for those of the well-known and widely dispersed gold-buying businesses in our cities. But in contrast to the latter, the precious metals trader is subject to distinct, tougher regulations.


What are precious metals and how do they work?

gold and silver oval case

Rare, organically occurring metallic elements with intrinsic worth are known as precious metals. They often don’t corrode, oxidise, or tarnish on their own. Gold, silver, palladium, and platinum are the primary precious metals, and they are all utilised in jewellery in addition to having a variety of other uses.


Throughout human history, precious metals have been used for money and jewellery. More recently, metals like gold have been used in products like iPhones and computer software. During periods of market turbulence, certain precious metals are seen as safe havens because they serve as tangible reservoirs of wealth.


What types of precious metals are available for trading?


The four principal precious metals that are traded are usually accepted to be gold, silver, platinum, and palladium. All of these have a variety of uses, including those in industry, electronics, medicine, and alloys, in addition to serving as historical money storage and being used in jewellery.




Since ancient times, gold has been utilised in the manufacture of pricey things. Due to its conductivity, gold is now employed in electronics like smartphones and laptops that we all use every day, as well as in jewellery and design. In times of market turbulence, many investors choose it as their safe-haven asset.




Due to its conductive, anti-bacterial, and malleable qualities, silver is a widely utilised metal in the industry. These enable a variety of uses for silver, such as in batteries, dentistry, and water purification.




In its purest form, platinum is used in jewellery and dentistry procedures. However, it is also widely utilised as an alloy; for instance, magnets are made of an alloy of platinum and cobalt. Additionally, it’s a component of various chemotherapy medications, particularly those used to treat lung, testicular, and ovarian cancers as well as lymphomas and lymphoma.




Palladium and platinum are congeners, which means they have similar origins, structures, or uses. Catalytic converters for cars, which are crucial devices that transform dangerous chemicals like carbon monoxide into nitrogen, carbon dioxide, or water vapour, use more than half of the palladium supply.


How to trade precious metals


Precious metals trading entails using financial derivatives, such as CFDs, to speculate on price movements. You have a choice between trading spot prices, options, and futures for precious metals when you trade with us.


You won’t ever need to take actual delivery of the underlying assets, such as gold or silver, because you’ll be trading on these values with CFDs.


Job description of a precious metal trader 


  • Building strong working relationships with the clients you will buy from and sell to as a metal trader in the commodities market will be one of your everyday responsibilities.
  • The daily updating of OTC pricing to reflect trader mark-to-market value may fall under your purview.
  • A Metal Trader must-read market reports, much like any other trader-related position.
  • For paper transactions, a metal trader collaborates closely with other brokers and market makers.
  • You will settle accounts, check and reconcile internal trade management systems, handle payments and weekly receipts, and reconcile brokerage fees.
  • Additionally, a metal trader must maintain precise records and issue invoices, debit notes, and credit notes as needed.


Top skills and credentials for a metals trader


  • A degree is typically required for a metals trader, and depending on the position being offered, the company may also specify industry-specific qualifications.
  • Great verbal and written communication abilities are required, as well as excellent math skills.
  • A metals trader must be able to operate under pressure and under strict deadlines, maintain an analytical work style, and be able to make decisions based on both knowledge and reasoning.
  • Microsoft Office software is a need, and you can also be expected to be familiar with other programmes used often in the sector.


Legal requirements for metal traders


What responsibility does a metal trading company have under the law specifically? In addition to the previously mentioned elements, all gold exchanges and buying and selling operations must be declared through a specific policy programme, using accurate entry models.


The documents that are filled out by the operator of the metal trading store must contain information about the buyer (and the person making the statement), information identifying the seller, the date on which the transaction is carried out, the specific type of operation, the amount of precious metal bought and sold (expressed in grammes), and the corresponding value.

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