CGA Precious Metals & Market Valuation 2

Question 1

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

Accepted Answer

950 parts per thousand pure platinum

Answer

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

Question 2

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

Accepted Answer

It increases proportionally to the gold content percentage

Answer

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.

Question 3

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

Accepted Answer

Spot price

Answer

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

Question 4

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

Accepted Answer

31.1 grams

Answer

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

Question 5

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

Accepted Answer

Lighter and less dense

Answer

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

(CGA) Certified Gemologist Appraiser Practice Test