CGA Precious Metals & Market Valuation 5

Question 1

Which acid solution is traditionally used to test gold karat by observing the reaction on a touchstone?

Accepted Answer

Nitric acid at varying concentrations

Answer

Gold testing acids are nitric acid solutions calibrated to specific concentrations that dissolve alloys below certain karats while leaving higher-karat gold unaffected.

Question 2

The 'bid-ask spread' in precious metals trading refers to:

Accepted Answer

The difference between the buying price and selling price dealers quote

Answer

The bid-ask spread is the margin between what a dealer will pay to buy metal (bid) and the higher price at which they will sell (ask).

Question 3

Sterling silver is defined as containing what minimum percentage of pure silver?

Accepted Answer

92.5%

Answer

Sterling silver must contain at least 92.5% pure silver (fineness 925), with the remainder typically copper for added durability.

Question 4

An appraiser notices that a gold chain loses significant weight after acid etching reveals a base-metal core. This practice is known as:

Accepted Answer

Filled construction or hollow fill fraud

Answer

Fraudulent filled construction involves a base-metal core coated with gold to misrepresent weight and value; acid etching can expose this deception.

Question 5

When silver prices fall sharply, what typically happens to the appraisal value of an antique sterling flatware set with strong historical provenance?

Accepted Answer

The collectible premium may offset most of the decline in melt value

Answer

For antiques with significant collectible or historical value, the premium above melt value can cushion or offset declines in raw metal spot prices.

(CGA) Certified Gemologist Appraiser Practice Test

(CGA) Certified Gemologist Appraiser Practice Test

CGA Precious Metals & Market Valuation 5