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DEPOSITORY

A deposit institution that stores precious metals on behalf of its owner. See “Allocated Storage”.

DERIVATIVES (gold based)

Overall term for highly leveraged paper or financial products whose underlying value is based on the gold price. Includes products such as gold loans, forwards, futures, options and warrants.

DIVERSIFICATION

A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one asset class on overall portfolio performance.

DEVALUATION

Lowering of the value of a country’s currency relative to gold and/or the currencies of other nations. Devaluation can also result from a rise in value of other currencies relative to the currency of a particular country.

DUE DILIGENCE MEETING

Meeting conducted by the underwriter of a new offering at which brokers can ask representatives of the issuer questions about the issuer’s background and financial reliability and the intended use of the proceeds. Brokers who recommend investment in new offerings without very careful due diligence work may face lawsuits if the investment should go sour later. Although, in itself, the legally required due diligence meeting typically is a perfunctory affair, most companies, recognizing the importance of due diligence, hold informational meetings, often in different regions of the country, at which top management representatives are available to answer questions of securities analysts and institutional investors.