Commodities & Precious Metals

An alternative asset is an item that has intrinsic value, but is not traditionally considered a financial asset.
An American Income Trust is a type of royalty trust.
Also called a far month contract, a back month contract is a futures contract that has an expiration date that is the farthest beyond the next approaching expiration date (called the “front month contract
Back months are the expiration dates of futures contracts that fall furthest from the nearest expiration date.  
Backpricing is a method for pricing commodities, whereby the buyer and seller agree to buy/sell a commodity but set the price at a later date.
Backwardation describes a downward sloping forward curve in a commodity market. This means that as the price of a commodity for future delivery is lower than the spot price -- the price of a commodity
A barrel of oil equivalent (or BOE) is a unit measure of unused energy resources. Expressed frequently in the financial statements of energy companies, BOEs are defined by the U.S. Internal Revenue
The call rule is a rule that requires the official opening price of a cash commodity to be near the previous day's closing price of that commodity.
A Canadian income trust is a type of investment trust that holds stable, income-producing assets and pays out at least 90% of its net cash flows to its unitholders (shareholders are known as unitholders
The Chicago Mercantile Exchange (CME) is a commodities futures and options exchange. Several dozen types of contracts trade on the CME, and the exchange facilitates hundreds of millions of these trades
Commodification refers to a good or service becoming indistinguishable from similar products.
Commoditization refers to a good or service becoming indistinguishable from similar products.
Commoditize means to homogenize a product or security.  
A commodity is any homogenous good traded in bulk on an exchange. 
The Commodity Futures Trading Commission (CFTC), was established in 1974 as an independent government agency with the purpose of regulating commodity futures and options markets.
A commodity index is an index of the prices of items such as wheat, corn, soybeans, coffee, sugar, cocoa, hogs, cotton, cattle, oil, natural gas, aluminum, copper, lead, nickel, zinc, gold and silver.
A commodity market is a place where buyers and sellers can trade any homogenous good in bulk. Grain, precious metals, electricity, oil, beef, orange juice and natural gas are traditional examples of
Commodity parity price refers to the price of a commodity based on a single price or average of prices during a previous span of time.
The Commodity Research Bureau Index (CRB) tracks the general trend of the commodities markets.
Contango occurs when the current futures price of an asset (as quoted in the futures market) is higher than the current spot price of the underlying asset.
The e-CBOT is an automated trading platform for trading futures on the Chicago Board of Trade (CBOT).
Fool's gold is a shiny mineral called pyrite which bears great resemblance to, and is often confused with, real gold.
Gold bugs are people who are fans of investing in gold.
The AMEX Gold BUGS Index (also known as HUI) is one of two major gold indices that dominate the market. BUGS is an acronym for "Basket of Unhedged Gold Stocks." The index was introduced on March 15, 1996
A gold bull is someone who believes the price of gold will go up. 
A gold certificate is a piece of paper that entitles the bearer to a certain amount of actual gold.
A gold fix occurs when the The London Gold Market Fixing Ltd. sets the price of gold.
A gold fund is an exchange-traded fund (ETF) or mutual fund that invests in gold.
A gold option gives the holder the right, but not the obligation, to purchase or sell a specific quantity of gold at a specified strike price on the option's expiration date.
The Gold Reserve Act of 1934 nationalized gold and fixed its price.
The gold-silver ratio is measure of how many ounces of silver it takes to buy an ounce of gold.
The Goldman Sachs Commodity Index (GSCI) is a commodities index now owned by Standard & Poor's.
Hard money is a broad term used in connection with currency and transfer payments.
The Federal Reserve Bank of New York provides, among other things, gold storage for foreign governments and central banks. This gold is in the form of bars, which allows the bank to weigh it, stack it,
A job lot is a commodities futures contract where the underlying commodity is denominated in smaller amounts than a regular futures contract.
Joint supply is the simultaneous output of two or more products from a single process or material.
The London Spot Fix occurs when the members of the London Gold Pool (five banks) have a conference call and set the price per ounce for several metals (gold, platinum, silver and palladium).
A master limited partnership (MLP) is a publicly traded limited partnership. Shares of ownership are referred to as units. MLPs generally operate in the natural resource, financial services, and real
The New York Board of Trade (NYBOT), founded in 1870, is a physical commodity futures exchange located in New York City. The NYBOT trades options and futures on cotton, sugar, coffee, orange juice, and
The New York Mercantile Exchange (NYMEX), founded in 1872, is the world's largest physical commodity futures exchange, headquartered in lower Manhattan. NYMEX handles trades worth billions of dollars in
People who enjoy numismatics often have rare coins that can be quite valuable. But not all numismatics fans have to have money to keep collections. Using a fun site such as, which lets
Also called tar sands, oil sands are areas of the ground that contain a viscous form of oil called bitumen.
Operating netback is a measure used in the oil and gas industry to reflect the net profit on oil and gas after royalties, production, and transportation expenses. 
Petrocurrency is cash -- usually U.S. dollars -- resulting from the sale of oil and deposited by oil exporters into Western (usually American) banks.
Pork Bellies are a major commodity traded on the Chicago Mercantile Exchange.
Price per flowing barrel is a measure of an oil and gas company's valuation as compared to the number of barrels of oil or gas it produces.
A reserve report is filed by companies in the oil and gas industry. It estimates remaining quantities of oil and gas (reserves) expected to be recovered from existing properties.
A royalty trust is a type of corporation created to act as the owner of the mineral rights to wells, mines and similar properties.  It exists only to pass income generated from the sale of the property's
Shadow pricing is the practice of allotting a dollar-value to an abstract commodity for the purpose of cost-benefit analysis.
Sour crude is a type of unrefined oil that contains sulfur.  It is difficult to refine and usually fetches a lower price.
Sweet crude is a type of yet-to-be refined oil which contains minimal amounts of impurities.
A vault receipt is a document that proves ownership of gold, silver or other precious metals stored elsewhere.
Wildcat drilling is the process of looking for oil and natural gas wells in non-typical areas.