Hi All, I would like to know what the term "hypothecation" means. I saw this when someone was wanting quite a considerable amount worth of diamonds. Is this a safe thing. How does it work?Kind regards,Henri Human
I don't know for sure but here is the dictionary.com entry:
hy·poth·e·cate (h-pth-kt)
tr.v. hy·poth·e·cat·ed, hy·poth·e·cat·ing, hy·poth·e·cates
To pledge (property) as security or collateral for a debt without transfer of title or possession.
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It is used in precious stones accordingly.From traders messages:"We are able to Hypothecate precious stones and Metals for credit line and Private Banking Transaction"