CGA Precious Metals & Market Valuation 3

Question 1

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

Accepted Answer

Nickel or palladium

Answer

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

Question 2

Rhodium plating is applied to white gold jewelry primarily to:

Accepted Answer

Enhance whiteness and add scratch resistance

Answer

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

Question 3

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

Accepted Answer

An electronic auction process twice daily

Answer

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

Question 4

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

Accepted Answer

Increased geopolitical uncertainty and safe-haven demand

Answer

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

Question 5

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

Accepted Answer

18K

Answer

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

(CGA) Certified Gemologist Appraiser Practice Test

(CGA) Certified Gemologist Appraiser Practice Test

CGA Precious Metals & Market Valuation 3