Inventories

Inventories, net at March 31, 2015 and December 31, 2014 were comprised of:



	March 31,			December 31,
(in thousands)	2015			2014
Finished products	$	28,224		$	24,424
In-process	11,845			10,310
Raw materials	14,008			12,346
Fine and fabricated precious metals in various stages of completion	20,084			17,094
	74,161			64,174
LIFO reserve	(501		)	(245		)
Total	$	73,660		$	63,929

In order to produce certain of its products, H&H purchases, maintains and utilizes precious metal inventory. H&H records certain of its precious metal inventory at the lower of last-in, first-out ("LIFO") cost or market, with any adjustments recorded through cost of goods sold. Remaining precious metal inventory is accounted for primarily at fair value.

Certain customers and suppliers of H&H choose to do business on a "pool" basis and furnish precious metal to H&H for return in fabricated form or for purchase from or return to the supplier. When the customer metal is returned in fabricated form, the customer is charged a fabrication charge. The value of this customer metal is not included on the Company's consolidated balance sheet. To the extent H&H is able to utilize customer precious metal in its production processes, such customer metal replaces the need for H&H to purchase its own inventory. As of March 31, 2015, customer metal in H&H's custody consisted of 175,164 ounces of silver, 534 ounces of gold and 1,392 ounces of palladium.



Supplemental inventory information:	March 31,		December 31,
(in thousands, except per ounce)	2015		2014
Precious metals stated at LIFO cost	$	6,410	$	4,684
Precious metals stated under non-LIFO cost methods, primarily at fair value	$	13,173	$	12,165
Market value per ounce:
Silver	$	17.06	$	15.75
Gold	$	1,195.75	$	1,199.25
Palladium	$	748.00	$	798.00