Investopedia

Continue to Site »

Assay

Filed Under » ,
Dictionary Says

Definition of 'Assay'

The process of analyzing a physical sample to determine its composition. In financial markets, the term assay usually refers to the chemical analysis of a mineral or ore sample to ascertain its content of precious metals or minerals, such as gold, copper, or uranium. These samples are obtained from drill holes made in a mineral or ore body, or property that is being evaluated for its metal or mineral content by a resource exploration or production company.

Investopedia Says

Investopedia explains 'Assay'

Since assay results provide an early indication of the potential value of a mineral or ore body, they are closely monitored by investors in junior resource companies, which are typically small-capitalization stocks. An exceptional assay result can trigger a substantial rally in the stock of a company that holds the mineral rights over the property. Conversely, poor assay results may lead to a significant decline in a stock that has run up on speculation about promising results.

In the futures markets, metals that are used to meet delivery requirements of futures contracts must be assayed to ensure that they meet the stringent quality and purity requirements mandated by the commodity futures exchange.

Articles Of Interest

  1.

    Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.

  2. Using Technical Analysis In The Gold Markets

    The quest for this shiny commodity has made millionaires of paupers and, on the flip side, ruined many an investor.

  3. Strike Gold With Junior Mining

    Learn what to watch out for to ensure your "sure thing" isn't another Bre-X.

  4. Futures Fundamentals

    For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work and why investors use them.

  5. Quants: The Rocket Scientists Of Wall Street

    Blend math, finance and computer skills to command a high - and well deserved - salary.

  6. Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.

  7. Trading Is Timing

    Learn how to make gains even if you don't get in at the right time.

  8. Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.

  9. Exploring Non-Dollar Currencies For Forex Trading

    Learn how investments in foreign currencies can diversify your portfolio.

  10. Candlestick Charting: What Is It?

    Discover the components and basic patterns of this ancient technical analysis technique.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center