Commodity glossary A
- Gold reaching the market through mine hedging and finance transactions before it is physically produced - generally created by producer hedging or finance transactions
- Non-competitive trading entered into by a trader, usually to assist another with illegal trades.
- A small representative sample taken from a gold bar for assay to determine its fine gold content.
- An account in which the client's metal is individually identified as his, and physically segregated from all the other gold in the vault; in the event of a default by the holding bank, the investor becomes a secured creditor.
- A mixture of two or more chemical elements, including at least one metals. In the ase of gold, it is mixed with a baser metal or metals to lower the purity, influence the colour or add durability."
- A mixture with mercury and silver, gold, copper or another metal, known since classical times. A major use is in dentistry
- An option which can be exercised at any stage during its life, at or before expiration date
- Positively polarised electrodes in an electrolytic cell; copper content about 99.5%.
- A product of the copper tankhouse which settles on the bottom of an electrolytic cell as the copper anodes dissolve and which also adheres to the remains of the anodes. The precious and non-soluble components of the anode are enriched in the anode slimes (e.g. silver, gold, selenium, lead).
- The purchase/sale of a contract on a market and the simultaneous taking of an equal and opposite position, usually on another market, to profit from discrepancies in the price and/or currencies involved."
- An option which, if it expires in-the-money, is automatically settled on the basis of the difference between the strike price and the average price of the underlying asset in a given period prior to expiration."
- The price a seller asks for the commodity. (also see "offer")
- The testing and evaluation of a metal to determine its fineness or purity. There are often minimum standards that must be met.
- A tester of precious metals to determine their purity.
- The stamp by an assayer on a bar or piece of precious metal to guarantee its fineness
- Refers to an option in which the strike price which is equal to the current market price of the underlying asset.
AVERAGE STRIKE OPTIONS
- Asian-style options where the ultimate settlement depends on an average strike price rather than an average underlying asset price.
- A method whereby a smoothing of the fluctuations in price movements may be achieved by agreeing to buy or sell a specified total quantity of gold or silver on the basis of the average price of the gold or silver fixings over an agreed period of time.