What are Swaps?

A term referring to a precious metals loan agreement in exchanges. The parties agree to a fixed value, or price, for the precious metal for a specified amount of time. The agreed-upon price is a quote from a precious metals exchange such as COMEX. Like all other loan agreements, the swap contract also includes an interest rate at which the account accrues interest from the agreed-upon price.

See Also…

Commodity Markets, COMEX, Gold IRA

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