Company: GOLD
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016909
Chunk: 363

Company: Gold.com, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 1
Chunk 363
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    (24,661
    )

    (22,316
    )

    In-transit inventory no longer subject to market risk

    (21,022
    )

    (21,715
    )

    Unhedgeable premiums on open commitment positions

    13,446

    10,986

    Borrowed precious metals

    (33,888
    )

    (31,993
    )

    Product financing arrangements

    (551,937
    )

    (517,744
    )

    Advances on industrial metals

    518

    394

    (161,273
    )

    (152,672
    )

    Precious metal subject to price risk

    1,016,106

    929,127

    Precious metal subject to derivative financial instruments:

    Precious metals forward contracts at market values

    742,863

    843,439

    Precious metals futures contracts at market values

    269,606

    83,214

    Total market value of derivative financial instruments

    1,012,469

    926,653

    Net precious metals subject to commodity price risk
     
    $
    3,637

    $
    2,474

We are exposed to the risk of default of the counterparties to our derivative contracts. Significant judgment is applied by us when evaluating the fair value implications. We regularly review the creditworthiness of our major counterparties and monitor our exposure to concentrations. As of December 31, 2024, we believe our risk of counterparty default is mitigated based on our evaluation of the creditworthiness of our major counterparties, the strong financial condition of our counterparties, and the short-term duration of these arrangements. 

We had the following outstanding sale and purchase commitments and open forward and futures contracts, which are normal and recurring, in nature (in thousands):

    December 31, 2024

    June 30, 2024

    Purchase commitments
     
    $
    857,132

    $
    817,900

    Sales commitments
     
    $
    (400,861
    )
     
    $
    (388,184
    )

    Margin sales commitments
     
    $
    (24,661
    )
     
    $
    (22,316
    )

    Open forward contracts
     
    $
    742,863