Commodity glossary P
Glossaries -
Commodity Glossary
PANNING
- The classic and simple method of mining alluvial gold.
OPEN OUTCRY
- A style of trading conducted on a futures exchange in a ring or a pit where dealers face each other, calling out the price, contract, month and number of contracts
PAPER GOLDT
- A term used to describe gold contracts such as loco London deals and futures contracts which do not necessarily involve the delivery of physical gold.
PHYSICAL
- Trades that result in the delivery of the commodity i.e. not hedging, speculation or arbitrage.
PLATINUM GROUP ELEMENTS/PLATINUM GROUP METALS (PGE/PGM)
- The six metallic elements platinum, palladium, rhodium, ruthenium, iridium and osmium.
POSITION
- The net tonnage a party has bought or sold on any given prompt date. Also the overall position, being the net tonnage bought or sold for all prompt dates combined.
PRECIOUS METALS
- Metals of great value being gold, silver, platinum and other platinum group metals (for information on precious metals visit www.thebulliondesk.com)
PREMIUM
- A one-off payment, made at the outset, to purchase an option. The premium is a write-off unless the option is traded on either at a profit or when some or all of the premium may be recovered.
PRODUCTION STANDSTILL
- Regularly recurring production standstill in order that all furnaces and connected plant can be overhauled, maintained and repaired.
PUT OPTION
- A contract which gives the buyer the right, but not the obligation, to sell a specified amount of an asset at a predetermined price on or before a specified date.
PUT SPREAD
- An options position comprised of the purchase of a put option at one level and the sale of a put option at some lower level. The premium received by selling one option reduces the cost of buying the other, but participation is limited if the underlying goes down.
