Recitals/Glossary of Terms
| (AU) | Precious Metal being usually Gold assayed as 99.995% pure and acceptable Registered Hallmark |
Capital/Asset |
The funds to be invested, designated as a crrency and amount, used in the portfolio and purchase securities and asset. |
SKR |
Safe Keeping Receipt ? A document issued by a bank (or other regulated institution), which requires it to hold specific funds, securities, gold etc., unconditionally separate from other assets and return them when requested by the depositor. In this way the funds, securities or gold etc., is not an asset of the bank, nor is it directly or indirectly subject to any of the banks other obligations or debts. |
Principal |
The investor / client asset owner. |
Asset Manager |
Company, mandated by the client to manage the portfolio according to the wishes stated in the Letter of Intent. |
Hallmark |
The registered stamp on each gold bar impressed at refining, which conforms to internationally recognized standards. |
Penalty |
The pre-agreed upon amount the client/principal must forfeit due to early withdrawal or termination of the management agreement or liquidation of the asset. |
Sub-Account (Segregated Account.) |
When a bank or escrow agent acts on behalf of an intermediary, a sub-account is opened for each of the intermediaries? clients to hold their funds in their name. The account can only be operated according to the terms of a written agreement that is given to and approved by the bank. The deposited funds are not considered intermediary assets nor bank assets if an SKR has been issued by the bank. |
Arbitrage Definition from the Oxford Dictionary of Finance and Banking (shortened ) |
The NON-SPECULATIVE transfer of funds from one market to another to take advantage of differences in interest rates, exchange rates or commodity prices between the two markets. |