Precious Metals & Market Valuation Flashcards

Which precious metal is most commonly alloyed with gold to create white gold?

Answer: Nickel or palladium

White gold is typically alloyed with nickel (common in older pieces) or palladium (in hypoallergenic modern pieces) to achieve its white color.

Rhodium plating is applied to white gold jewelry primarily to:

Answer: Enhance whiteness and add scratch resistance

Rhodium electroplating gives white gold a bright, highly reflective white surface and improves hardness and scratch resistance.

The London Bullion Market Association (LBMA) publishes daily gold and silver prices known as the LBMA Gold Price. These benchmarks are established through:

Answer: An electronic auction process twice daily

The LBMA Gold Price is set via an electronic auction administered by ICE Benchmark Administration, held twice per business day (AM and PM).

Which factor would most directly cause gold prices to rise on the spot market?

Answer: Increased geopolitical uncertainty and safe-haven demand

Gold is a traditional safe-haven asset; geopolitical crises drive investors to buy gold, pushing spot prices higher.

A '750' stamp on a European gold piece is equivalent to which US karat marking?

Answer: 18K

750 parts per thousand pure gold equals 75% purity, which corresponds to 18 karat gold (18/24 = 75%).

When appraising a gold coin for insurance purposes, which value should the appraiser primarily report?

Answer: Retail replacement value including numismatic premium

Insurance appraisals report retail replacement value, which for numismatic coins includes both the metal melt value and any collector premium.

Silver tarnish is primarily caused by silver reacting with which substance in the environment?

Answer: Hydrogen sulfide in the air

Silver tarnish is silver sulfide (Ag₂S), formed when silver reacts with trace hydrogen sulfide (H₂S) gases present in the atmosphere.