CGA Precious Metals & Market Valuation 4

Question 1

An appraiser is asked for a 'fair market value' of a gold ingot. Which scenario best defines this value?

Accepted Answer

The price a willing buyer and seller agree upon, both informed and unpressured

Answer

Fair market value (FMV) is the hypothetical price agreed upon by a knowledgeable, willing buyer and seller with no compulsion to transact.

Question 2

Gold futures contracts traded on the COMEX are standardized at how many troy ounces per contract?

Accepted Answer

100 troy ounces

Answer

A standard COMEX gold futures contract represents 100 troy ounces of gold.

Question 3

Which precious metal has the highest density among commonly used jewelry metals?

Accepted Answer

Iridium

Answer

Iridium has a density of approximately 22.56 g/cm³, making it denser than platinum (21.45 g/cm³) and gold (19.32 g/cm³).

Question 4

When assessing the value of a vintage gold brooch, the appraiser should consider all of the following EXCEPT:

Accepted Answer

The current spot price of rhodium

Answer

Rhodium spot price is irrelevant to a gold brooch appraisal unless it has significant rhodium plating, which vintage pieces rarely do.

Question 5

A client's platinum ring tests positive for platinum but weighs significantly less than expected for its size. What is the most likely explanation?

Accepted Answer

The setting contains hollow areas or a lower-density core metal

Answer

Hollow construction or a base-metal core reduces overall weight while maintaining the appearance and surface material of solid platinum.

(CGA) Certified Gemologist Appraiser Practice Test