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Kim Bảo Minh Châu
Gold and savings · · 1 min read

Depositing gold: how a custody agreement protects you

Leaving gold with a company is only safe when the contract says whose it is, where it is kept, who counts it and how you get it back. Seven clauses to read closely.

Written by Kim Bảo Minh Châu

The 24K gourd pendant

Buying gold and leaving it with the shop suits people who prefer not to keep gold at home. But "deposit" can mean different things. Some places keep your exact pieces; others effectively borrow your gold. The difference is in the contract.

Safekeeping versus lending

SafekeepingLending or gold mobilisation
Whose goldYoursThe company's asset; you hold a claim
Company may use itNoYes
InterestNonePossibly
If the company strugglesYour property is kept separateYou are a creditor, waiting to be paid

The Kim Bảo Minh Châu custody agreement is a safekeeping contract under the 2015 Civil Code. KBMC pays no interest because it may not use your gold.

The gourd pendant, a coded 24K piece
The gourd pendant, a coded 24K piece

Seven clauses to read

  1. What is deposited: a list of item codes, weights and purities. Do not accept a contract that only shows a "gold balance".
  2. Ownership: it says the gold is yours, not part of the company's assets.
  3. No use: the company may not sell, lend or pledge deposited gold.
  4. Segregation and seals: each client's gold sealed and recorded separately.
  5. Insurance: which risks are covered and for how much.
  6. Independent counts: who counts, how often, whether an independent auditor witnesses it, whether you may inspect.
  7. Withdrawal and compensation: notice required, getting your own pieces back, compensation if lost.

Status at KBMC

The Gold savings service is being prepared for launch. Ten key terms are published in advance on the Gold custody agreement page for you to read and comment on. The final agreement will be posted on launch day. Register on Gold savings.

This article is information, not legal or investment advice.

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