CGA Precious Metals & Market Valuation

Question 1

Which factor most significantly influences the market price of gold?

Accepted Answer

Central bank policies and inflation expectations

Answer

Mining production levels

Answer

Industrial demand

Answer

Jewelry design trends

Question 2

What is 'spot price' in precious metals valuation?

Accepted Answer

The immediate price for buying or selling a metal

Answer

Price of a futures contract

Answer

Price quoted by jewelers

Answer

The predicted price in six months

Question 3

Which is the standard unit of measure for gold valuation?

Accepted Answer

Troy ounces

Answer

Grams

Answer

Carats

Answer

Kilograms

Question 4

Which precious metal is most commonly used in industrial applications?

Accepted Answer

Silver

Answer

Gold

Answer

Platinum

Answer

Palladium

Question 5

What is the primary purpose of hallmarking in precious metals?

Accepted Answer

To confirm metal purity and authenticity

Answer

To indicate the price of the metal

Answer

To show the manufacturer's logo

Answer

To indicate age

Question 6

Which of the following can cause volatility in precious metal markets?

Accepted Answer

Geopolitical instability and economic uncertainty

Answer

Stable interest rates

Answer

Consistent inflation

Answer

Seasonal shopping trends

Question 7

Why is platinum generally more expensive than gold or silver?

Accepted Answer

It is rarer and more difficult to refine

Answer

Higher industrial demand

Answer

Greater historical value

Answer

More popular in jewelry

Question 8

Which term refers to the cost added to the spot price for physical precious metals?

Accepted Answer

Premium

Answer

Spread

Answer

Markup

Answer

Retail tax

Question 9

What does the 'London Fix' refer to in precious metal pricing?

Accepted Answer

The benchmark price set twice daily in London

Answer

A standard jewelry setting

Answer

A price ceiling imposed by governments

Answer

A method for repairing metal impurities