Metals & Commodities Trading Glossary
A comprehensive reference guide to precious metals, non-ferrous metals, commodities trading, refining, compliance, and supply chain terminology used in the global metals industry.
AML (Anti-Money Laundering)
Laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. In metals trading, AML compliance requires transaction monitoring, suspicious activity reporting, and customer due diligence.
Assay
The process of analyzing a metal to determine its composition and purity. An assay certificate documents the results and accompanies refined metals throughout the supply chain.
Base Metals
Common, non-precious metals such as copper, aluminium, zinc, nickel, lead, and tin. Also called non-ferrous metals when referring to metals that don't contain iron.
Bullion
Precious metals (gold, silver, platinum, palladium) in bulk form, typically as bars or ingots, valued by weight and purity rather than face value.
Chain of Custody
The documented trail that records the sequence of custody, control, transfer, and disposition of materials from source to end user. Essential for compliance and traceability in metals trading.
ComplyAdvantage
An AI-powered regulatory compliance technology platform used for real-time sanctions screening, PEP identification, and adverse media monitoring in financial and commodities trading.
Conflict Minerals
Minerals mined in conditions of armed conflict and human rights abuses, particularly in the Democratic Republic of Congo. Includes tin, tantalum, tungsten, and gold (3TG).
CPC (Cost Per Click)
In digital marketing, the price paid each time someone clicks on an advertisement. High CPC keywords in metals trading indicate high commercial value.
Critical Minerals
Minerals essential for economic and national security that face supply chain risks. Includes lithium, cobalt, manganese, rare earth elements, and others vital for clean energy and defense.
Doré
A semi-pure alloy of gold and silver, typically produced at a mine site. Doré bars are sent to refineries for further purification to investment or industrial grade.
Due Diligence
The investigation and assessment of a business or individual before entering a transaction. In metals trading, due diligence covers identity verification, source verification, and risk assessment.
Electrolytic Refining
A purification process where impure metal is dissolved from an anode and deposited as pure metal on a cathode using an electric current. Used to achieve 99.99%+ purity for gold and copper.
Fineness
A measure of the purity of a precious metal, expressed in parts per thousand. For example, 999.9 fineness means 99.99% pure gold.
Good Delivery
The LBMA standard for gold and silver bars accepted in the London wholesale market. Good Delivery bars must meet specific weight, dimensions, fineness, and appearance requirements.
IPMR
International Precious Metals Refiners — a refinery specializing in Miller Processing and precious metals refining to LBMA Good Delivery standards.
KYC (Know Your Customer)
The process of verifying the identity of clients and assessing their risk profile. In commodities trading, KYC is mandatory for all counterparties regardless of size.
LBMA
London Bullion Market Association — the international trade association representing the global wholesale over-the-counter market for gold and silver. Sets the Good Delivery standards.
LME
London Metal Exchange — the world's largest market for trading base/non-ferrous metals including copper, aluminium, zinc, nickel, lead, and tin.
Miller Process
A gold refining technique that uses chlorine gas to purify molten gold by converting impurities into chloride slag. Produces gold of approximately 99.5-99.7% purity.
Non-Ferrous Metals
Metals that do not contain significant amounts of iron. Includes copper, aluminium, zinc, nickel, tin, and lead. Valued for electrical conductivity, corrosion resistance, and lightweight properties.
OECD Due Diligence Guidance
The Organisation for Economic Co-operation and Development's framework for responsible supply chains of minerals from conflict-affected and high-risk areas.
PEP (Politically Exposed Person)
An individual who holds or has held a prominent public position. PEPs and their associates are subject to enhanced due diligence in financial and commodities transactions.
PGM (Platinum Group Metals)
A group of six metallic elements: platinum, palladium, rhodium, iridium, ruthenium, and osmium. Known for catalytic properties and used in automotive, chemical, and electronic applications.
Physical Trading
The buying and selling of actual physical commodities (as opposed to derivatives or futures contracts). Physical trading involves storage, transportation, insurance, and delivery of real material.
Precious Metals
Rare, naturally occurring metallic elements with high economic value. The four primary precious metals are gold (Au), silver (Ag), platinum (Pt), and palladium (Pd).
Sanctions Screening
The process of checking individuals and entities against government sanctions lists (OFAC, EU, UN) to prevent prohibited transactions. Modern screening uses AI technology for real-time verification.
Semiconductor-Grade
Ultra-high purity metals (typically 99.99% or higher) suitable for use in semiconductor manufacturing processes such as chip wafer coating, wire bonding, and die bonding.
Spot Price
The current market price at which a commodity can be bought or sold for immediate delivery. Spot prices fluctuate based on supply, demand, and market conditions.
Sputtering Target
A high-purity metal disc used in physical vapor deposition (PVD) to coat semiconductor wafers and other substrates with thin metal films.
Troy Ounce
The standard unit of measurement for precious metals. One troy ounce equals approximately 31.1 grams. The LBMA Good Delivery gold bar weighs 350-430 troy ounces.
UN Certified Mine
A mining operation that complies with United Nations standards for human rights, labor practices, environmental protection, and anti-corruption. Sourcing from certified mines ensures ethical supply chain integrity.
Wire Bonding
A semiconductor packaging process that creates electrical connections between a chip die and its package using thin metal wires (typically gold or palladium-coated copper).
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