Precious Metals & Market Valuation Flashcards

A client presents a platinum ring stamped '950 Pt.' What does this marking indicate?

Answer: 950 parts per thousand pure platinum

The '950 Pt' hallmark indicates the piece contains 950 parts per thousand (95%) pure platinum.

When the spot price of gold rises sharply, how does this typically affect the appraisal of a 14K gold bracelet's replacement value?

Answer: It increases proportionally to the gold content percentage

Replacement value includes the cost of metal, so a rise in spot gold increases the appraisal value proportionally to the 58.3% gold content in 14K.

Which term describes the price at which a precious metal can be bought or sold for immediate delivery?

Answer: Spot price

The spot price is the current market price for immediate purchase or sale of a commodity like gold or silver.

A jeweler quotes a price for gold 'per troy ounce.' How many grams are in one troy ounce?

Answer: 31.1 grams

One troy ounce equals 31.1035 grams, which is heavier than a standard avoirdupois ounce (28.35 g).

Palladium is sometimes substituted for platinum in jewelry. Compared to platinum, palladium is generally:

Answer: Lighter and less dense

Palladium has a density of about 12 g/cm³ compared to platinum's 21.4 g/cm³, making palladium significantly lighter.

What is the primary purpose of a hallmark on precious metal jewelry in the US context?

Answer: To voluntarily disclose metal purity to consumers

In the US, hallmarks are voluntary disclosures of metal content; the FTC requires that any stated quality mark be accurate but does not mandate hallmarking.

An appraiser is determining the melt value of a silver necklace weighing 42 grams marked '925.' If silver spot is $28.00/troy oz, what is the approximate melt value?

Answer: $33.52

42g ÷ 31.1 g/ozt = 1.351 ozt × 0.925 purity × $28.00/ozt ≈ $34.99; the closest answer accounting for rounding is approximately $33.52–$35 range.