Gold trader hiring spree drives up pay as bullion booms

Core Insights - The demand for specialist gold traders is surging as interest in precious metals increases, leading to a competitive hiring environment and rising compensation packages in a historically niche market [1][4]. Group 1: Market Dynamics - Major commodity traders like Trafigura and Gunvor are actively hiring teams of precious metals traders, with other firms such as IXM and Mercuria also seeking to expand their presence in this sector [2]. - The gold market, with hundreds of billions of dollars traded weekly in London, has been traditionally dominated by a few banks, but the influx of new market participants is creating a talent shortage [3][7]. - The London Bullion Market Association conference highlighted the growing interest in precious metals, indicating a shift towards mainstream recognition of the sector [4][5]. Group 2: Financial Performance - The 12 leading banks reported earnings of $500 million from precious metals in Q1 2025, which is approximately double the average quarterly earnings over the past decade [6]. Group 3: Talent Acquisition Challenges - The precious metals trading sector has seen a decline in available talent due to years of neglect, with many experienced traders retiring and fewer graduates entering the field [7][8]. - The competition for skilled traders has intensified, with physical trading houses and hedge funds offering significantly higher bonuses compared to traditional banks [8][9]. - The hiring spree includes banks like DBS and OCBC, which are responding to strong client demand in the precious metals sector [11][12].