-Gold/Aurum-

Gold

2007-11-09T10:12:00.000-08:00

by Harold Kirkemo, William L. Newman, and Roger P. Ashley

Through the ages men and women have cherished gold, and many have had a compelling desire to amass great quantities of it--so compelling a desire, in fact, that the frantic need to seek and hoard gold has been aptly named "gold fever."
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Gold was among the first metals to be mined because it commonly occurs in its native form, that is, not combined with other elements, because it is beautiful and imperishable, and because exquisite objects can be made from it. Artisans of ancient civilizations used gold lavishly in decorating tombs and temples, and gold objects made more than 5,000 years ago have been found in Egypt. Particularly noteworthy are the gold items discovered by Howard Carter and Lord Carnarvon in 1922 in the tomb of Tutankhamun. This young pharaoh ruled Egypt in the 14th century B.C. An exhibit of some of these items, called "Treasures of Tutankhamun," attracted more than 6 million visitors in six cities during a tour of the United States in 1977-79.

The graves of nobles at the ancient Citadel of Mycenae near Nauplion, Greece, discovered by Heinrich Schliemann in 1876, yielded a great variety of gold figurines, masks, cups, diadems, and jewelry, plus hundreds of decorated beads and buttons. These elegant works of art were created by skilled craftsmen more than 3,500 years ago.

The ancient civilizations appear to have obtained their supplies of gold from various deposits in the Middle East. Mines in the region of the Upper Nile near the Red Sea and in the Nubian Desert area supplied much of the gold used by the Egyptian pharaohs. When these mines could no longer meet their demands, deposits elsewhere, possibly in Yemen and southern Africa, were exploited.

Artisans in Mesopotamia and Palestine probably obtained their supplies from Egypt and Arabia. Recent studies of the Mahd adh Dhahab (meaning "Cradle of Gold") mine in the present Kingdom of Saudi Arabia reveal that gold, silver, and copper were recovered from this region during the reign of King Solomon (961-922 B.C.).

The gold in the Aztec and Inca treasuries of Mexico and Peru believed to have come from Colombia, although some undoubtedly was obtained from other sources. The Conquistadores plundered the treasuries of these civilizations during their explorations of the New World, and many gold and silver objects were melted and cast into coins and bars, destroying the priceless artifacts of the Indian culture.

Nations of the world today use gold as a medium of exchange in monetary transactions. A large part of the gold stocks of the United States is stored in the vault of the Fort Knox Bullion Depository. The Depository, located about 30 miles southwest of Louisville, Kentucky, is under the supervision of the Director of the Mint.

Gold in the Depository consists of bars about the size of ordinary building bricks (7 x 3 5/8 x 1 3/4 inches) that weigh about 27.5 pounds each (about 400 troy ounces; 1 troy ounce equals about 1.1 avoirdupois ounces.) They are stored without wrappings in the vault compartments.

Aside from monetary uses, gold is used in jewelry and allied wares, electrical-electronic applications, dentistry, the aircraft-aerospace industry, the arts, and medical and chemical fields.

The changes in demand for gold and supply from domestic mines in the past two decades reflect price changes. After the United States deregulated gold in 1971, the price increased markedly, briefly reaching more than $800 per troy ounce in 1980. Since 1980, the price has remained in the range of $320 to $460 per troy ounce. The rapidly rising prices of the 1970's encouraged both experienced explorationists and amateur prospectors to renew their search for gold. As a result of their efforts, many new mines opened in the 1980's, accounting for much of the expansion of gold output. The sharp declines in consumption in 1974 and 1980 resulted from reduced demands for jewelry (the major use of fabricated gold) and investment products, which in turn reflected rapid price increases in those years.

Gold is called a "noble" metal (an alchemistic term) because it does not oxidize under ordinary conditions. Its chemical symbol Au is derived from the Latin word "aurum." In pure form gold has a metallic luster and is sun yellow, but mixtures of other metals, such as silver, copper, nickel, platinum, palladium, tellurium, and iron, with gold create various color hues ranging from silver-white to green and orange-red.

Pure gold is relatively soft--it has about the hardness of a penny. It is the most malleable and ductile of metals. The specific gravity or density of pure gold is 19.3 compared to 14.0 for mercury and 11.4 for lead.

Impure gold, as it commonly occurs in deposits, has a density of 16 to 18, whereas the associated waste rock (gangue) has a density of about 2.5. The difference in density enables gold to be concentrated by gravity and permits the separation of gold from clay, silt, sand, and gravel by various agitating and collecting devices such as the gold pan, rocker, and sluicebox.

Mercury (quicksilver) has a chemical affinity for gold. When mercury is added to gold-bearing material, the two metals form an amalgam. Mercury is later separated from amalgam by retorting. Extraction of gold and other precious metals from their ores by treatment with mercury is called amalgamation. Gold dissolves in aqua regia, a mixture of hydrochloric and nitric acids, and in sodium or potassium cyanide. The latter solvent is the basis for the cyanide process that is used to recover gold from low-grade ore.

The degree of purity of native gold, bullion (bars or ingots of unrefined gold), and refined gold is stated in terms of gold content. "Fineness" defines gold content in parts per thousand. For example, a gold nugget containing 885 parts of pure gold and 115 parts of other metals, such as silver and copper, would be considered 885-fine. "Karat" indicates the proportion of solid gold in an alloy based on a total of 24 parts. Thus, 14-karat (14K) gold indicates a composition of 14 parts of gold and 10 parts of other metals. Incidentally, 14K gold is commonly used in jewelry manufacture. "Karat" should not be confused with "carat," a unit of weight used for precious stones.

The basic unit of weight used in dealing with gold is the troy ounce. One troy ounce is equivalent to 20 troy pennyweights. In the jewelry industry, the common unit of measure is the pennyweight (dwt.) which is equivalent to 1.555 grams.

The term "gold-filled" is used to describe articles of jewelry made of base metal which are covered on one or more surfaces with a layer of gold alloy. A quality mark may be used to show the quantity and fineness of the gold alloy. In the United States no article having a gold alloy coating of less than 10-karat fineness may have any quality mark affixed. Lower limits are permitted in some countries.

No article having a gold alloy portion of less than one-twentieth by weight may be marked "gold-filled," but articles may be marked "rolled gold plate" provided the proportional fraction and fineness designations are also shown. Electroplated jewelry items carrying at least 7 millionths of an inch (0.18 micrometers) of gold on significant surfaces may be labeled "electroplate." Plated thicknesses less than this may be marked "gold flashed" or "gold washed."

Gold is relatively scarce in the earth, but it occurs in many different kinds of rocks and in many different geological environments. Though scarce, gold is concentrated by geologic processes to form commercial deposits of two principal types: lode (primary) deposits and placer (secondary) deposits.

Lode deposits are the targets for the "hardrock" prospector seeking gold at the site of its deposition from mineralizing solutions. Geologists have proposed various hypotheses to explain the source of solutions from which mineral constituents are precipitated in lode deposits.

One widely accepted hypothesis proposes that many gold deposits, especially those found in volcanic and sedimentary rocks, formed from circulating ground waters driven by heat from bodies of magma (molten rock) intruded into the Earth's crust within about 2 to 5 miles of the surface. Active geothermal systems, which are exploited in parts of the United States for natural hot water and steam, provide a modern analog for these gold-depositing systems. Most of the water in geothermal systems originates as rainfall, which moves downward through fractures and permeable beds in cooler parts of the crust and is drawn laterally into areas heated by magma, where it is driven upward through fractures. As the water is heated, it dissolves metals from the surrounding rocks. When the heated waters reach cooler rocks at shallower depths, metallic minerals precipitate to form veins or blanket-like ore bodies.

Another hypothesis suggests that gold-bearing solutions may be expelled from magma as it cools, precipitating ore materials as they move into cooler surrounding rocks. This hypothesis is applied particularly to gold deposits located in or near masses of granitic rock, which represent solidified magma.

A third hypothesis is applied mainly to gold-bearing veins in metamorphic rocks that occur in mountain belts at continental margins. In the mountain-building process, sedimentary and volcanic rocks may be deeply buried or thrust under the edge of the continent, where they are subjected to high temperatures and pressures resulting in chemical reactions that change the rocks to new mineral assemblages (metamorphism). This hypothesis suggests that water is expelled from the rocks and migrates upwards, precipitating ore materials as pressures and temperatures decrease. The ore metals are thought to originate from the rocks undergoing active metamorphism.

The primary concerns of the prospector or miner interested in a lode deposit of gold are to determine the average gold content (tenor) per ton of mineralized rock and the size of the deposit. From these data, estimates can be made of the deposit's value. One of the most commonly used methods for determining the gold and silver content of mineralized rocks is the fire assay. The results are reported as troy ounces of gold or silver or both per short avoirdupois ton of ore or as grams per metric ton of ore.

Placer deposits represent concentrations of gold derived from lode deposits by erosion, disintegration or decomposition of the enclosing rock, and subsequent concentration by gravity.

Gold is extremely resistant to weathering and, when freed from enclosing rocks, is carried downstream as metallic particles consisting of "dust," flakes, grains, or nuggets. Gold particles in stream deposits are often concentrated on or near bedrock, because they move downward during high-water periods when the entire bed load of sand, gravel, and boulders is agitated and is moving downstream. Fine gold particles collect in depressions or in pockets in sand and gravel bars where the stream current slackens. Concentrations of gold in gravel are called "pay streaks."

In gold-bearing country, prospectors look for gold where coarse sands and gravel have accumulated and where "black sands" have concentrated and settled with the gold. Magnetite is the most common mineral in black sands, but other heavy minerals such as cassiterite, monazite, ilmenite, chromite, platinum-group metals, and some gem stones may be present.

Placer deposits have formed in the same manner throughout the Earth's history. The processes of weathering and erosion create surface placer deposits that may be buried under rock debris. Although these "fossil" placers are subsequently cemented into hard rocks, the shape and characteristics of old river channels are still recognizable.

The content of recoverable free gold in placer deposits is determined by the free gold assay method, which involves amalgamation of gold-bearing concentrate collected by dredging, hydraulic mining, or other placer mining operations. In the period when the price of gold was fixed, the common practice was to report assay results as the value of gold (in cents or dollars) contained in a cubic yard of material. Now results are reported as grams per cubic yard or grams per cubic meter.

Through laboratory research, the U.S. Geological Survey has developed new methods for determining the gold content of rocks and soils of the Earth's crust. These methods, which detect and measure the amounts of other elements as well as gold, include atomic absorption spectrometry, neutron activation, and inductively coupled plasma-atomic emissionon spectrometry. These methods enable rapid and extremely sensitive analyses to be made of large numbers of samples.

Gold was produced in the southern Appalachian region as early as 1792 and perhaps as early as 1775 in southern California. The discovery of gold at Sutter's Mill in California sparked the gold rush of 1849-50, and hundreds of mining camps sprang to life as new deposits were discovered. Gold production increased rapidly. Deposits in the Mother Lode and Grass Valley districts in California and the Comstock Lode in Nevada were discovered during the 1860's, and the Cripple Creek deposits in Colorado began to produce gold in 1892. By 1905 the Tonopah and Goldfield deposits in Nevada and the Alaskan placer deposits had been discovered, and United States gold production for the first time exceeded 4 million troy ounces a year--a level maintained until 1917.

During World War I and for some years thereafter, the annual production declined to about 2 million ounces. When the price of gold was raised from $20.67 to $35 an ounce in 1934, production increased rapidly and again exceeded the 4-million-ounce level in 1937. Shortly after the start of World War II, gold mines were closed by the War Production Board and not permitted to reopen until 1945.

From the end of World War II through 1983, domestic mine production of gold did not exceed 2 million ounces annually. Since 1985, annual production has risen by 1 million to 1.5 million ounces every year. By the end of 1989, the cumulative output from deposits in the United States since 1792 reached 363 million ounces.

Consumption of gold in the United States ranged from about 6 million to more than 7 million troy ounces per year from 1969 to 1973, and from about 4 million to 5 million troy ounces per year from 1974 to 1979, whereas during the 1970's annual gold production from domestic mines ranged from about 1 million to 1.75 million troy ounces. Since 1980 consumption of gold has been nearly constant at between 3 and 3.5 million troy ounces per year. Mine production has increased at a quickening pace since 1980, reaching about 9 million troy ounces per year in 1990, and exceeding consumption since 1986. Prior to 1986, the balance of supply was obtained from secondary (scrap) sources and imports. Total world production of gold is estimated to be about 3.4 billion troy ounces, of which more than two-thirds was mined in the past 50 years. About 45 percent of the world's total gold production has been from the Witwatersrand district in South Africa.

The largest gold mine in the United States is the Homestake mine at Lead, South Dakota. This mine, which is 8,000 feet deep, has accounted for almost 10 percent of total United States gold production since it opened in 1876. It has combined production and reserves of about 40 million troy ounces.

In the past two decades, low-grade disseminated gold deposits have become increasingly important. More than 75 such deposits have been found in the Western States, mostly in Nevada. The first major producer of this type was the Carlin deposit, which was discovered in 1962 and started production in 1965. Since then many more deposits have been discovered in the vicinity of Carlin, and the Carlin area now comprises a major mining district with seven operating open pits producing more than 1,500,000 troy ounces of gold per year.

About 15 percent of the gold produced in the United States has come from mining other metallic ores. Where base metals- -such as copper, lead, and zinc--are deposited, either in veins or as scattered mineral grains, minor amounts of gold are commonly deposited with them. Deposits of this type are mined for the predominant metals, but the gold is also recovered as a byproduct during processing of the ore. Most byproduct gold has come from porphyry deposits, which are so large that even though they contain only a small amount of gold per ton of ore, so much rock is mined that a substantial amount of gold is recovered. The largest single source of byproduct gold in the United States is the porphyry deposit at Bingham Canyon, Utah, which has produced about 18 million troy ounces of gold since 1906.

Geologists examine all factors controlling the origin and emplacement of mineral deposits, including those containing gold. Igneous and metamorphic rocks are studied in the field and in the laboratory to gain an understanding of how they came to their present location, how they crystallized to solid rock, and how mineral-bearing solutions formed within them. Studies of rock structures, such as folds, faults, fractures, and joints, and of the effects of heat and pressure on rocks suggest why and where fractures occurred and where veins might be found. Studies of weathering processes and transportation of rock debris by water enable geologists to predict the most likely places for placer deposits to form. The occurrence of gold is not capricious; its presence in various rocks and its occurrence under differing environmental conditions follow natural laws. As geologists increase their knowledge of the mineralizing processes, they improve their ability to find gold.
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This publication is one of a series of general interest publications prepared by the U.S. Geological Survey to provide information about the earth sciences, natural resources, and the environment. To obtain a catalog of additional titles in the series "General Interest Publications of the U.S. Geological Survey," write:

U.S. Geological Survey
Information Services
Box 25286
Denver, CO 80225
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As the Nation's principal conservation agency, the Department of the Interior has responsibility for most of our nationally owned public lands and natural and cultural resources. This includes fostering sound use of our land and water resources; protecting our fish, wildlife, and biological diversity;preserving the environmental and cultural values of our national parks and historical places; and providing for the enjoyment of life through outdoor recreation. The Department assesses our energy and mineral resources and works to ensure that their development is in the best interests of all our people by encouraging stewardship and citizen participation in their care. The Department also has a major responsibility for American Indian reservation communities and for people who live in Island Territories under U.S. Administration.

Links

2007-11-09T09:23:00.000-08:00

The following are web site links to the world's largest gold producing companies and to their reports on environmental practices, social responsibility, sustainable development and additional relevant topics.

Newmont
www.newmont.com
www.newmont.com/en/social/policy/social/index.asp

AngloGold Ashanti
www.anglogold.co.za/default.htm
www.anglogold.co.za/Social%20Responsibility

Barrick
www.barrick.com
www.barrick.com/index.aspx?sid=6

Gold Fields Ltd.
www.goldfields.co.za/
www.goldfields.co.za/investor/annual_reports/annual2005/pdfs/sustainabilityreport.pdf

Placer Dome
www.placerdome.com/Home.htm
www.placerdome.com/sustainability/reports/corporate.htm

Harmony
www.harmony.co.za/
www.harmony.co.za/environmental.cfm

Rio Tinto
www.riotinto.com/
www.riotinto.com/community/sePolicies.aspx

Freeport-McMoran
www.fcx.com/
www.fcx.com/envir/wtsdeng.htm

Kinross Gold
www.kinross.com
www.kinross.com/ir/cr/index.html

Glamis
www.glamis.com/
www.glamis.com/corp_gov/index.html

The following are links to organizations representing gold producers:

National Mining Association
www.nma.org

Northwest Mining Association
www.nwma.org

World Gold Council
www.gold.org

Nevada Mining Association
www.nevadamining.org

International Council on Mining and Metals
www.icmm.com/

Mining Association of Canada
www.mining.ca/english/

Minerals Council of Australia
www.minerals.org.au/

Laws & Regulations

2007-11-09T09:20:00.000-08:00

U.S. gold mining operations must comply with a broad range of local, state and federal laws and regulations that govern how mines are operated and how mined land is reclaimed for other beneficial uses. The General Mining Law (the 1872 Mining Law), which regulates access to federal lands, is specific to metals mining. Requirements affecting environmental performance and public comment, for example, apply to mining as well as the rest of American industry.

Most metals mining in the United States occurs in 12 western states, where much of the land is owned by the federal government. This land-covering approximately 700 million acres-is the responsibility of the Bureau of Land Management (BLM) of the U.S. Department of the Interior. Roughly half of that land is either totally withdrawn or entry, leasing or sale is restricted. Of the remaining land, the BLM or the U.S. Forest Service oversees a variety of federal land uses, including ranching, mining, forestry and railroad rights of way, for example.

Recently, the National Academy of Sciences (NAS) evaluated whether metals mining and mined land reclamation should be subject to a uniform set of laws that covered only mining, or if the current system of state and federal laws and regulations was more protective of the environment. The NAS found that because of varying topography and climate conditions, soils composition, processing technology and metals chemistry, it was not possible to develop a uniform set of standards and recommended the current approach as the preferred alternative.

For a more comprehensive overview of the laws and regulations governing gold mining in the United States: U.S. Laws and Regulations Governing Gold Mining on Private and Federal Lands

For the position of the U.S. mining industry on a national minerals policy and mining law reform http://www.nma.org/policy/legislative/mining_law_reform.asp.

The Role of Gold in Modern Society

2007-11-09T09:15:00.000-08:00

The Role of Gold in Modern Society
Gold mining's value to developing countries

Gold mining is vital to the fragile economies of many impoverished countries, which account for roughly two-thirds of global gold production. In addition to generating export revenue in these countries, gold production provides royalty and tax income to their governments, technology transfer, worker training and the creation of a skilled workforce. Gold mining can also bring substantial improvements in physical, social, legal and financial infrastructure. In many of these countries, gold mining is a foundation industry that often provides the critical mass for the development of electricity, water, road and rail transport in a region, that are the essential foundations of an economy.

Developing countries accounted for 72% of global output in 2004. Most of this came from low-income or lower-middle-income countries that together accounted for two thirds of global output.

The strongest rise in output has been seen in Heavily Indebted Poor Countries (HIPCs), whose gold production rose by 84% between 1994 and 2004. Of the 38 HIPC countries, 14 are significant gold producers with lesser or minor production in at least another 14 countries. There is potential for substantial additional production in several other countries.

The rise in HIPCs' output has been paralleled by rising export dependence on gold. In 2003, gold accounted for 13% of goods (merchandise) exports of the 14 significant producers and 10% of their exports of goods and services. For HIPCs as a group, gold accounted for nearly 8% of goods exports and over 6% of exports of goods and services. It is one of the most important exports for HIPCs.

Gold is the leading export for Mali (59% of goods exports in 2003), Tanzania (44%), Ghana (32%), Guyana (26%) and the second most important for Guinea (23%). A $10 fall in the gold price would cause a loss of around $75m in HIPCs' export income.

For the 27 HIPC countries that have reached decision or completion point (those that receive at least some debt relief under the HIPC initiative), gold exports in 2003 amounted to 87% of debt service payments.

Gold is equally important to other low-income countries that are not HIPCs. Among those considered by the World Bank to be severely or moderately indebted, gold is the leading export for Kyrgyzstan (around 45% of total goods exports in 2003) and Papua New Guinea (36%), the second most important export for Mongolia (20%) and Zimbabwe (11%) and one of the two leading exports for Uzbekistan. Among lower-middle-income countries, gold is the leading export for both South Africa (13% of goods exports in 2003) and Peru (17%).

Gold mining companies source supplies locally where possible and employ local labor where possible. Thus, even allowing for some necessary imports and for the remittance of profits and dividends, their impact on a developing country's balance of payments is strongly positive. Gold mining, and metals mining generally, is essentially free of the distorting subsidies applied by some developed countries to agricultural production.

Export revenue is not the only benefit gold mining brings to a developing country. It provides royalty and tax income to governments, technology transfer, skilled employment and training for local populations, together with further jobs through the multiplier effect. In one or two cases it has provided the foundation for a significant jewelry manufacturing industry.

Gold mining can also bring substantial improvements in physical, social, legal and financial infrastructure. The establishment of a formal mining industry can be the first step in a country's industrial development. Mining is a foundation industry that often provides the critical mass for the development of electricity, water, road and rail transport in a region. This characteristic of the industry is particularly important in Africa where lack of infrastructure has been identified as one of the major hindrances to economic development.

Gold is often thought of as synonymous with wealth. Yet gold coins, bars and high-carat jewelry play a crucial role as a means of saving and defense against misfortune to many of the poor of the world. Similarly gold mining brings benefits to poorer nations. It will continue to have a role to play in fostering economic development.

Gold's value to consumers and investors in developing countries

In much of Asia, the Middle East, and the Indian subcontinent, gold is the best possible protection against upheaval, both political and economic. For men and women throughout the developing world, gold is still one of the most liquid and widely accepted forms of exchange, quite simply the most efficient store of value they possess. Around two thirds of the jewelry purchased in the Middle East and Asia is used as a means of saving in addition to its function as an adornment. The use of jewelry as savings is often important in rural areas where access to a reliable and appropriate banking system is difficult or impossible. Gold also offers protection against a weak currency or high domestic inflation levels, which are prevalent and persistent problems in the developing world.

Around two thirds of all jewelry manufacture takes place in the developing world and the proportion is rising. Countries such as Turkey, India, China and Thailand have all seen their exports to developed countries rise in the last few years, generating export earnings and employment. Gold jewelry sales to tourists are also important for Turkey, Egypt and Dubai.

While inflation has essentially been non-existent until recently in most developed countries, in many developing countries, inflation and the attendant currency depreciation have been rampant, causing hardship to millions, if not billions, of people. The US dollar price of gold did not perform well for 20 years from 1980 to 2000, but gold was an excellent investment in terms of for, example, the Indian rupee, the Turkish lire, or the Vietnamese dong. Where men and women do not have easy access to liquid markets in company stock or government bonds, to US dollar bank accounts, or even any bank account at all, gold has proved over and over again to be the most valuable financial asset to own.

For example, in Vietnam, gold plays an important role in the purchase of a home. Buying a home in Vietnam takes time, as is the case in most countries. From the moment a buyer and seller agree on a price to the day the paperwork and sale are completed takes a month or longer. During this time, the value of the Vietnamese currency may have fallen sharply, as the current rate of currency depreciation in that country is very rapid. Accordingly, the buyer will arrange financing with a bank not in terms of the Vietnamese dong, but in gold, which holds its value in terms of purchasing power. This arrangement means the buyer will still have enough to pay the agreed price when the sale is consummated.

Gold's value to women living in developing countries

In the Middle East and the Indian sub-continent gold plays an important role in the financial security of women. Historically, jewelry was often the only asset a Muslim or Hindu woman could own in practice, and in more traditional families this is still very much the case, especially in rural areas. A woman's gold can therefore be her only protection against personal misfortune. Hence, the practice of giving an Indian bride gold, which is considered Streedhan, or "property of the woman".

India is the world's largest market for gold jewelry, accounting in 2004 for one fifth of the global total.

Gold's important role in society's long-standing customs

Gifts of gold make a vital contribution as tokens of love and precious souvenirs on those emotional occasions that bring people together - weddings, anniversaries, birthdays, Christmas and other religious holidays, graduations, Mother's Day, birthdays, religious ceremonies such as baptisms, and many more.

Gold's function as an adornment, as jewelry, has been in existence for over 6,000 years. The earliest gold jewelry dates from the Sumerian civilization that flourished in the fertile basin between the Tigris and Euphrates rivers around 4,000 BC.

Why is gold so coveted? Since the beginning of time, the intrinsic beauty, warmth, sensuality and spiritual richness of gold has earned it pride of place as the favorite metal of jewelers. Gold has inspired craftsmen to create objects of desire that unite us with our emotions. In the Middle Ages, alchemists attempted to use their magic to make gold from other metals. They believed that gold was a source of immortality, and so it was used in medicines designed to fight old age and prolong life.

Today, consumer demand for gold jewelry is growing by over 20% per annum, demonstrating the confidence that women around the world have in gold. This level of demand far outstrips the supply for gold that mines can produce.

Gold as a preserver of value (inflation hedge, safe haven, etc.)

Gold is an effective hedge against inflation. In addition, gold is inversely correlated to the US dollar, making it a good currency hedge. As an asset class, gold has all the advantages of being universally regarded as a currency, without what are all too often the disadvantages of being subject to the economic and monetary policies of one particular country's government.

Gold's value as an effective portfolio diversifier

Gold is a highly effective portfolio diversifier due to its low to negative correlation with all major asset classes. Over the last 20 years, gold has shown no statistically significant correlation with equities. That applies not just to domestic US equities, but also to international equities, including those traded in London, Tokyo, Frankfurt, and so on.

Gold has also shown no statistically significant correlation with other mainstream asset classes, such as US Government bonds, Treasury Bills, and equity real estate investment trusts. The fundamental reason for this lack of correlation is that the factors driving the gold price are not the same as the factors that determine the returns on other assets. Obviously, there are some economic factors that influence the performance of all investments. But equally obviously, changes in gold supply and demand have no influence over the other asset classes.

As a rule, gold shows no statistically significant correlations with mainstream asset classes. However, there is evidence that when equities are under stress, in other words when shares are falling rapidly in value, an inverse correlation can develop between gold and equities. And this aspect of gold's behavior runs directly counter to the way other asset classes perform in stress situations.

Gold's value as a currency reserve

Gold is still considered an important reserve asset by most central banks, even though it is no longer the center of the international financial system. The most important reason is that gold is the only reserve asset that is no one's liability. This means that, unlike a currency, the value of gold cannot be affected by the economic policies of the issuing country or undermined by inflation in that country.

Gold has a track record of holding its real value over the centuries. Since gold is no-one's liability, it can not be repudiated and holding it is a safeguard against potential unforeseen crises. Gold also brings much needed diversity to a central bank portfolio due to its low correlation with key currencies and its strong inverse correlation with the US dollar. The central bank of Argentina, for example, when diversifying a portion of its reserves away from 100% reliance on the US dollar in 2004, included gold in its purchases.

Gold accounts for 9% of reserves held by central banks (valued at market prices).

Gold's value in industrial applications

Gold ranks among the most high-tech of metals, performing vital functions in many areas of everyday life. Gold's unique properties make it useful in medical applications, pollution control, air bags, mobile telephones, laptop computers, space travel, and many other things we consider indispensable to our modern lives. Approximately 12% of demand for gold comes from industry.

Medical Applications

Because it is "biocompatible", gold plays an important role in medical implants. For example, gold-coated "stents" are inserted into clogged arteries to clear the flow of blood. Also, because gold is opaque to x-rays, surgeons are able to place a stent with the utmost precision, which helps ensure optimal effectiveness. Other medical implants that contain gold are pace makers and insulin pumps. Gold is used in these devices because of its high level of reliability in micro electronics.

Gold possesses a high degree of resistance to bacterial colonization, and because of this it is the material of choice for implants that are at risk of infection, such as the inner ear. Gold has a long tradition of use in this application and is considered a very valuable metal in microsurgery of the ear.

Gold is being used increasingly in pharmaceutical applications. Gold is ideal for delivering biologically active materials directly into the target tissues in the human body, without damaging the tissues themselves, or altering the biological activity of the material being delivered. Gold helps doctors to deliver precise doses of powerful drugs to the parts of the body where they are required. This is important in the treatment of a range of diseases, including cancer and HIV, the virus that causes AIDS.

On the molecular level, gold has applications through its organic and chemical compounds used in medical science: for instance, anti-cancer drugs. Or in what doctors have started to describe as a "pharmacy on a chip" - a tiny covering of gold is used to encase micro doses of drugs on an electronic chip that is implanted in the body. When the chip is electronically activated to dissolve the tiny casing of gold, an appropriate dose of drug is released.

In a similar way, gold is the preferred material for a branch of medical research the scientists call "biolistics", because it is a marriage of biology and ballistics. Strands of DNA are blended with microscopic gold powder and injected into the skin in search of targeted cells, so that the researchers can observe the reaction. In this application, three of gold's attributes are crucial: first, its non-reactiveness. Second, the fact that it is opaque means it can be precisely located, just as with the stents. And finally, the fact that gold is dense - it has a high ratio of mass or weight to volume - means the compound can achieve the high speed required to penetrate the targeted cell.

Environmental Applications

Recently, it has been discovered that gold nanoparticles, measuring only 25 nanometres across, can split oxygen atoms, thereby facilitating oxidation reactions, which create useful organic products as oxygen atoms and carbon compounds combine. New research published in the top scientific journal Nature has revealed that gold catalysts can clean up an important chemical process that is used every day to produce tons of pharmaceuticals, detergents & food additives.

As a chemical catalyst, gold is playing an important role in new environmental applications, such as pollution control (mercury emissions) and fuel cells. By way of example, the Institute for Green Technology in Tokyo has 30 scientists working on gold catalysts for environmentally sensitive, or "green", technology applications.

To give you an idea of the importance of catalysis, it has been estimated that about one trillion dollars of the Gross Domestic Product of the United States is derived from processes that use some form of industrial catalysis.

In recent years, catalysts using gold have become a very hot topic of research. There have been breakthroughs in research studies that have shown gold to be an excellent catalyst in a number of important chemical reactions. Some of the potential applications include:
Pollution control in diesel-powered vehicles, and in the environment;
Clean energy generation, by means of fuel cells;
Sensors, for detecting gases in industrial processes;
And as catalysts for chemical and petrochemical processes. Gold may lead to new routes for the manufacture of many vital chemicals.

Other Applications

The standard touch-tone telephone would not function without the 33 contacts made from gold it contains. Air bag systems fitted in more than 30 million cars around the world rely on gold-coated electrical contacts. And every time you touch a key on your computer it strikes a gold circuit that relays your command to the computer's microprocessor.

Gold is one of the most effective conductors of electricity known to man, and its reliability compared with other metals such as palladium or copper is increased by the fact that gold is also an excellent conductor of heat. Gold is also inert and, therefore, does not react when it comes into contact with other substances. In addition, Gold does not corrode or tarnish, so it is much more reliable than other metals in electronic applications.

Gold South African Krugerrands

2007-11-09T08:57:00.001-08:00

While there are a number of gold coins available on the market, the South African Krugerrand is the original one troy ounce gold bullion coin made by a government and valued on the content of its gold, rather than the face value of the coin.

And Monex, America's premier precious metals investment firm, has been one of the nation's leading dealers in Krugerrands for more than 30 years.

Originally minted in 1967 in an effort to help market South African gold to the international market, the Krugerrand stood alone as an accessible investment opportunity for the everyday buyer...it was the first gold coin to contain exactly one troy ounce of gold, and was intended from its inception to provide a way for the private investor to purchase precious metals.

Additionally, by producing the coin as legal tender in South Africa, the coin was available for portfolio diversification in the United States, which at the time, banned private ownership of gold bullion, but did allow ownership of foreign coins. While the political turmoil that has plagued South Africa over the past 40 years has had an effect on the liquidity of the coin, with the lifting of apartheid in 1994 the Krugerrand has once again regained its status as one of the leading gold bullion coins traded world-wide.

The Krugerrand derives its name from combining the names of Paul Kruger, a well-known Boer leader and local hero who went on to become the last president of the Republic of South Africa, and the "rand" -- the monetary unit of South Africa.

The obverse side of the coin is detailed with a profiled bust of President Paul Kruger and features the name of the country, "South Africa," in the country's two native languages, English and Afrikaans. The reverse side of the coin features the image of a springbok antelope, one of the national symbols of South Africa, originally used on the South African 5-shilling piece. The reverse side also features the year of issue and the fineness of the coin.

The South African Krugerrand is a 22-karat coin weighing a total 1.0909 ounces (or 33.930 grams). It is comprised of one troy ounce of pure gold and 2.826 grams of a copper alloy which is used to give the coins higher durability and to make them more resistant to scratching, and gives the coins a unique orange-gold hue.

The gold Krugerrand has a diameter of 32.6mm, a thickness of 2.74mm, and has a fineness of .9167, or 22 karats.

Monex offers the Krugerrand in units of ten one-ounce coins, for personal delivery only. Today, the Krugerrand is regarded as one of the worlds' oldest and most recognizable gold bullion coins, carrying with it all of the qualities one could want in a gold investment: liquidity, portability and beauty.

Call a Monex Account Representative today to discuss how a gold Krugerrand investment could become part of your investment portfolio.

Monex Account Representatives are normally available between 5:30am and 4:30pm Pacific time, Monday through Friday (except national holidays)...and on many weekends.

Give us a call...give our service a try...and compare our prices. You'll see why Monex has been America's trusted name in precious metals...for over 40 years.

Gold Canadian Maple Leafs

2007-11-09T08:55:00.001-08:00

Monex, the country's leading precious metals investment firm, is pleased to offer gold investors the beautiful, pure gold Canadian Maple Leaf...a legal-tender bullion coin known worldwide for its purity, refinement and beauty.

Since its initial release in 1979 as a pure, 24 karat gold alternative to the 22 karat South African Krugerrand, the only other one troy ounce gold bullion coin available at the time, the gold Maple Leaf has become the standard of quality against which all other bullion coins are measured.

Canadian Maple Leaf gold coins are known and respected throughout the world because of the impeccable standards of quality mandated by the Royal Canadian Mint. The Royal Canadian Mint's insistence upon flawless planchets, the pure gold blanks from which gold coins are struck, has led to an enviable reputation among demanding investors and collectors. Its impeccable quality, pleasing design, and fine gold purity (at ninety-nine point nine-nine percent pure gold, or "four-nines" fine) has made the Canadian Maple leaf one of the preferred gold coins of investors around the world. In fact, the one troy ounce gold Canadian Maple Leaf has been in continuous production longer than any other pure gold bullion coin.

Each gold Maple Leaf coin features the image of Great Britain's Queen Elizabeth the second, along with the denomination and date of issue, on the obverse side...and an image of Canada's national symbol, the maple leaf (from which the coin derives its name), on the reverse side, along with the name of the country and the level of purity of the gold, listed in both English and French.

The Canadian Maple Leaf is currently available from Monex in four different sizes. The classic one troy ounce coin, which measures 30mm in diameter with a thickness of 2.87mm, makes the coin approximately the same size as an extra thick United States half-dollar. The coin carries a face value of 50 Canadian Dollars. One ounce Canadian Maple Leaf gold coins are offered by Monex in units of 10 one-ounce coins, and are available for both personal delivery and through the exclusive Monex ATLAS program, and the coins make a wonderful addition to any investment portfolio and are also available for IRA investment.

Canadian Maple Leaf coins are also available from Monex in fractional sizes. The half-ounce coin has a diameter of 25mm, and is 2.23mm thick, which gives this coin similar dimensions to a double-stacked United States quarter, and carries a face value of 20 Canadian Dollars. The quarter-troy-ounce Canadian Maple Leaf coin has a diameter of 20mm, with a thickness of 1.78mm, and a face value of 10 Canadian Dollars. The tenth-ounce gold Maple Leaf has a diameter of 16mm and a thickness of 1.13mm, making it comparable in size to a United States dime, and carries a face value of 5 Canadian Dollars. All fractional gold Canadian Maple Leaf coins are available from Monex for personal delivery only, in units of 20 coins.

In 2007, the Royal Canadian Mint surprised the numismatic world by creating and issuing two very interesting variants of the classic pure gold Maple Leaf one-ounce coin -- the world's largest and purest gold coin ever produced -- a 100 kilogram, or 220 pound, "five-nines" fine (or ninety-nine point nine-nine-nine percent pure gold), one million dollar (Canadian) face value coin (although the gold content was worth over TWO million dollars (U.S.) at the time). In 2007, the Royal Canadian Mint also produced a special new "five-nines" fine, one-ounce Gold Maple Leaf with a $200 Canadian face value, the highest face value of any one-ounce legal tender gold bullion coin.

Gold Canadian Maple Leaf coins are internationally recognized, and they are bought and sold anywhere in the world gold is traded...and the government of Canada guarantees the purity, weight and legal tender value of every gold Maple Leaf coin.

With their classical beauty...unsurpassed purity...legal tender status...and backing by the Canadian government...gold Canadian Maple Leaf coins provide investors and collectors with coins that can be both a secure and internationally-recognized addition to a well-diversified investment portfolio.

Call a Monex Account Representative today to discuss how a gold Maple Leaf investment could become part of your investment portfolio...and about the many convenient ways you can purchase your gold Canadian Maple Leaf coins from Monex.

Monex Account Representatives are normally available between 5:30am and 4:30pm Pacific time each Monday through Friday (except national holidays)...and on many weekends.

Give us a call...give our service a try...and compare our prices. You'll see why Monex has been America's trusted name in precious metals...for over 40 years.

Gold American Eagles

2007-11-09T08:52:00.001-08:00

Historically, gold has been sought for the stability, liquidity and diversity it can provide to an investment portfolio. Monex is proud to offer a gold bullion coin that provides all of this, as well as the backing and security of the American government ...the gold American Eagle.

The first gold coins produced in America, the original $10 gold "Eagle" coins, were originally minted by the United States Mint starting in 1795. More than two hundred years later, U.S. gold coins—perhaps some of the greatest symbols of American liberty and freedom -- are still produced with levels of quality and beauty that one would expect of the United States Mint.

First released by the United States mint in 1986, the gold American Eagle is the first modern bullion coin to be authorized by the United States congress...and is backed by the US Mint for its weight, content and purity.

Each gold American Eagle coin features striking imagery, symbolizing the American spirit and character. The obverse of the coin, originally designed by Augustus Saint-Gaudens for the country's $20 gold piece minted from 1907 to 1933, carries the image of a full length figure of Lady Liberty holding a torch in her right hand and an olive branch in her left. In the background can be seen the images of the sun rising and the United States Capitol dome. The obverse side of the coin also bears the inscription "Liberty" and contains both the date of issue and the individual mint mark of origin. The reverse side of the coin bears the image of a male bald eagle carrying an olive branch, flying towards his mate in a nest with their hatchlings.

American Eagle gold coins are available from Monex in four different sizes and denominations, for personal delivery only. The one-ounce gold American Eagle has a diameter of 32.7mm, a thickness of 2.87mm, a total weight of 1.0909 troy ounces (or 33.931 grams), contains one troy ounce of pure gold, and has a face value of $50. One-ounce gold American Eagles are sold in units of 10 one-ounce coins.

Each of the fractional gold American Eagle coins are sold in units of 20 coins each. The half-ounce gold coin has a diameter of 27mm, a thickness of 2.24mm, a total weight of .5454 troy ounces (or 16.966 grams), contains a half- ounce of pure gold, and has a face value of $25. The quarter-ounce gold coin has a diameter of 22mm, a thickness of 1.83mm, a total weight of .2727 troy ounces (or 8.483 grams), contains a quarter-ounce of pure gold, and has a face value of $10. The tenth-ounce gold coin has a diameter of 16.5mm, a thickness of 1.19mm, a total weight of 0.1091 troy ounces (3.393 grams), contains a tenth-ounce of pure gold and has a face value of $5.

Like the South African Krugerrand, all American Eagle gold bullion coins are 22 karat (or .9167 fine) gold, containing an alloy of silver and copper to help increase the stability and scratch-resistance of the coins. Each coin is guaranteed to contain an exact quantity of gold, mined exclusively in the United States, and to meet the rigid quality standards of the U.S. Mint.

American Eagle gold coins provide investors with the means to diversify, balance and stabilize a well-rounded investment portfolio, all with the safety and backing of the United States government and the U.S. Dollar.

Call a Monex Account Representative today to discuss how a gold American Eagle investment could become part of your investment portfolio.

Monex Account Representatives are normally available between 5:30am and 4:30pm Pacific time each Monday through Friday (except national holidays)...and on many weekends.

Give us a call...give our service a try...and compare our prices. You'll see why Monex has been America's trusted name in precious metals...for over 40 years.

Gold American Buffalos

2007-11-09T08:50:00.000-08:00

Monex, America's trusted name in precious metals for more than forty years, is proud to offer a one-of-a-kind masterpiece ...the gold American Buffalo, the first pure 24-karat gold bullion coin produced by the United States Mint.

Authorized by Congress through the Presidential Coin Act of 2005, the gold American Buffalo was first minted in 2006, and more than 300,000 of the coins were produced and sold that year.

Unlike previous American gold coinage, which has traditionally been 22-karat (or .9167 fine), the American Buffalo is unique in that it represents the United States' first large-scale circulation of a .9999 (or four-nines) fine gold coin in the Mint's history.

The obverse side of the gold American Buffalo features the profile of a Native American man, while the reverse side features the silhouette of an American bison standing in profile, modeled after "Black Diamond," a popular attraction in the New York Zoological Gardens in the early part of the 20th century. The coin's images were originally created by the American sculptor James Earle Fraser, a student of well-known sculptor Augustus Saint-Gaudens -- designer of the popular $20 gold Double Eagle minted from 1907 to 1933. The images were originally featured on the popular "Indian Head" or "Buffalo" nickel, minted in the U.S. from 1913 to 1938.

Each American Buffalo coin contains exactly one troy ounce (or 31.1035 grams) of pure gold. Its diameter is 1.287 inches (or 32.70mm), with a thickness of 0.116 inches (or 2.95mm), making it approximately the same size as a U.S. half dollar coin.

At this time, the gold American Buffalo is only offered in a one troy ounce size, although according to the U.S. Mint, fractional sizes of one-half, one-quarter and one-tenth ounce sizes are "under consideration."

The gold American Buffalo features a face value of $50 on the reverse side of the coin, is minted at the United States Mint in West Point, New York, but does not feature any mint mark. By law, all of the gold used in the production of the American Buffalo bullion coin must be from newly-mined sources within the United States.

Monex offers the one-ounce gold American Buffalo in units of 10 coins for personal delivery only, and the coins are suitable for IRA investment.

Produced in America...pure "four-nines" fine quality...and its weight, content, and purity guaranteed by the United States Mint, the gold American Buffalo offers investors all the security, liquidity and protection of a world-class gold coin...and it's backed by the U.S. government.

Call a Monex Account Representative today to discuss how you could add pure gold American Buffalo coins to your investment portfolio.

Monex Account Representatives are normally available between 5:30am and 4:30pm Pacific time, Monday through Friday (except national holidays)...and on many weekends.

Give us a call...give our service a try...and compare our prices. You'll see why Monex has been America's trusted name in precious metals...for over 40 years.

Gold Vienna Philharmonics

2007-11-09T08:45:00.000-08:00

Monex, the country's leading precious metals investment firm, is pleased to offer gold investors the incomparable, pure gold Vienna Philharmonic...a legal-tender gold bullion coin recognized throughout the world for its beauty, purity and high quality.

Vienna Philharmonic coins are produced by the Austrian Mint in Vienna, Austria, which has been producing innovative coinage and currency for over 800 years, making it one of the oldest continuously-producing minting institutions in the world.

First struck in 1990, the Vienna Philharmonic coin is the only European legal tender gold coin produced on a large scale, and it is the only regularly issued bullion coin denominated in euros. It is also to our knowledge the only gold coin to ever have been featured on the side of an airplane...as seen here on an Austrian Airlines Airbus A340.

The Vienna Philharmonic is pure gold, with a fineness of .9999 or 24 karats, and is the largest diameter one-ounce pure gold coin in the world.

Each Vienna Philharmonic coin features imagery of the cultural pride of Austria, the Vienna Philharmonic Orchestra. The obverse side of the coin is stamped with the name of the orchestra in German, and features a montage of instruments, including a string bass, cellos, violins, a bassoon, harp and Viennese horn, representing Austria's rich musical and cultural heritage.

The reverse side of the coin features the image of the "Great Organ" found in Vienna's "Golden Hall," the concert hall where the Vienna Philharmonic Orchestra performs. The country of issue, the gold weight in ounces, legal tender value in euros, and the coin's purity are also stamped on the reverse side of the coin.

It is interesting to note that Vienna Philharmonic coin is unique in that it is one of the few gold coins in the world to have been minted and circulated with two different currency values: From 1990 through 2001, the coin was denominated in Austrian Shillings. After Austria joined the European Union in 2002, however, the coins were thereafter denominated in euros.

Monex has been one of the leading dealers in Vienna Philharmonics since the coin was first introduced in 1990. We have had and continue to have a very close working relationship with the Austrian Mint. Today, Monex sells more Vienna Philharmonics in North America annually than any other firm...and is among the top three dealers of the coins in the world.

The Vienna Philharmonic gold coin is currently available from Monex in four convenient sizes:

The one-ounce Vienna Philharmonic coin has a diameter of 37mm and is 2mm thick, giving the coin dimensions slightly smaller than the old US silver dollar coin. It carries a face value of 100 euros and is available from Monex in units of ten, one-ounce coins. The coins can be purchased outright for personal delivery or can be financed through the exclusive Monex ATLAS account. Additionally, Vienna Philharmonic gold coins are suitable for an IRA investment.

Each of the fractional Vienna Philharmonic coins are sold in units of 20 coins, and are available for personal delivery only. The half-ounce coin has a diameter of 28mm, is 1.60mm thick, and carries a face value of 50 euro. The quarter-ounce coin has a diameter of 22mm, is 1.20mm thick, and has a face value of 25 euro. The tenth-ounce coin has a diameter of 16mm, is 1.20mm thick, and has a face value of 10 euro. Each of the fractional coins features the same images found on the one-ounce coin.

In October 2004, to commemorate the 15th anniversary of Europe's only pure gold bullion coin, the Austrian Mint, under the direction of Master of the Mint Dietmar Spranz, issued the massive 1,000 troy ounce Vienna Philharmonic Gold Coin known affectionately known as the "Big Phil." The Mint produced only 15 of these mega-coins, each weighing in at slightly more than 68 pounds of pure .9999 fine gold and carrying a face value of 100,000 euro. Monex is proud to have handled all original sales of the Big Phil coins in North America.

With its incomparable beauty...technical perfection...unsurpassed purity...and legal tender status, gold Vienna Philharmonic coins provide investors with the means to diversify their investment portfolios with a hard asset that is both secure and internationally-recognized.

Call a Monex Account Representative today to discuss how a gold Vienna Philharmonic investment could become part of your investment portfolio...and about the many convenient ways you can purchase your gold Vienna Philharmonic coins from Monex.

Monex Account Representatives are normally available between 5:30am and 4:30pm Pacific time each Monday through Friday (except national holidays)...and on many weekends.

Give us a call...give our service a try...and compare our prices. You'll see why Monex has been America's trusted name in coin and bullion trading...for over 40 years.

Gold Investing

2007-11-09T08:37:00.000-08:00

For centuries, buying gold has been recognized as one of the best ways to preserve one's wealth and purchasing power. Gold is a unique investment, one that has served mankind well for thousands of years. From the times of ancient Egyptians, Greeks and Romans to more modern times, man has been fascinated with the beauty and magic of gold, and with its power to change men's lives.

Gold bullion is real, honest money...and, many say, the best form of money the world has ever known. It is a store of value and a safe haven in times of crisis. Gold is rare, durable and does not wear out in the manner of lesser metals (or paper!) when passed from hand to hand. A small amount, easily carried, can purchase a significant amount of goods and services. It is universally accepted, and can be easily bought and sold around the world.

Today, the beauty of a gold bar lies in its ability to diversify investments, protect wealth and preserve one's purchasing power.

Gold bullion is available from Monex in three convenient forms:

The 10-ounce gold bullion bar of at least .995 fine purity is the standard industry unit. It is traditionally used for trading and storage, and can also be taken for personal delivery. Each gold bar is hallmarked by a leading refiner to certify weight and purity.

Also available from Monex is the 32.15 troy ounce gold “kilobar”...a one kilogram bar of fine gold bullion of at least .995 purity. Manufacturers of these bars certify the weight and purity of the bullion content by imprinting their stamp or hallmark on each bar.

And finally, for those who want the finest investment-grade gold bullion bars available, we proudly offer the exclusive Monex-certified and convertible 10-ounce gold bullion ingot...composed of pure .9999 (or "four-nines") fine gold bullion—among the purest gold bullion bars available to investors today. Each bar is certified, with its weight and purity guaranteed by Monex, and each bar is further hallmarked by Heraeus, one of the world's leading refiners, and the 800 year-old Austrian Mint, one of the world's leading minting institutions.

A key feature of the 10-ounce Monex-certified gold bullion bar is that it is convertible into pure one-ounce Vienna Philharmonic gold coins with no commission at current market rates. Please contact a Monex Account Representative for more information on the Monex certified and convertible gold bullion bar, and for special "internet-only" incentives available on this product for new customers.

Gold bullion bars are real, tangible assets, and throughout history, have been an ideal store of value and an excellent hedge against inflation, deflation and political uncertainty. They are extremely liquid investments, easily stored and transported, and can be a uniquely private way to preserve one's wealth.

Call a Monex Account Representative today to discuss how a gold bullion investment could and possibly should become part of your investment portfolio.

Monex Account Representatives are normally available between 5:30am and 4:30pm Pacific time each Monday through Friday (except national holidays)...and on many weekends.

A Glossary of Gold-Related Terms

2007-11-09T08:26:00.000-08:00

AQUA REGIA
Aqua regia is a 3:1 mixture of hydrochloric acid and nitric acid. Aqua regia is used to test gold and platinum; it is one of the few substances that can dissolve gold and platinum.

ASSAY
An assay is a test of the purity of an alloy. A tiny piece of metal is scraped from the piece and the percentage of gold or silver is determined. Official assay offices determine whether a piece qualifies for an appropriate hallmark.

BLACK HILLS GOLD
Black Hills gold is gold jewelry that is made (but not always mined) in the Black Hills area of South Dakota, USA. Gold was first discovered in that area about 1874 by Horatio N. Ross. E.O Lampinen opened the Black Hills Jewelry Manufacturing Company in Deadwood, South Dakota in the early 1900's. Modern day Black Hills jewelry often has a three-color (yellow gold, pink gold and green gold) grape leaf and vine pattern. There are many companies that make Black Hills jewelry today, but by law, their creations must be made from Black Hills gold. This jewelry is often (but not always) 10 Karat gold.

BLUE GOLD
Blue gold is gold with a bluish tinge. It has been alloyed with a mix that includes iron.

CHENIER
Chenier is fine, hollow tubing that is used in the production of some jewelry findings (like clasps and joints), and lately, in the actual production of jewelry. The hollow tubes are lightweight and save in the use of gold. The tubes are hard to bend when they are empty, so a metal rod is inserted before bending, facilitating the bending.

DUCTILE
A ductile substance is easily pulled or stretched into a thin wire. Gold is the most ductile metal.

ELECTROPLATE
Electroplating (also called Galvanotechnics after its inventor, Luigi Galvani) is a process in which one metal is coated with another metal using electricity. In jewelry, inexpensive metals are frequently electroplated with more expensive metals, like gold (gold plating), copper (electrocoppering), rhodium (rhodanizing), chromium (chromium plating), or silver (silver plating). The thickness of the metal coat varies. Electrogilded coating is the thinnest (less than 0.000007 inches thick); gold-cased metals have a coating thicker that 0.000007 inches.

ELECTRUM
Electrum is an amber-colored alloy of gold and silver that was was used in ancient times. Electrum is also an alloy used in medieval times consisting of copper (50%), nickel (30%) and zinc (20%).

FINENESS
Fineness is the proportion of silver or gold in a metal alloy. Fineness is usually expressed in parts per thousand. For example, the fineness of sterling silver is 925.

FOOL'S GOLD
Fool's gold is pyrite, a shiny, metallic mineral that looks like gold, but is actually a a form of iron. Marcasite stones come from pyrite.

GOLD DORE
Gold doré (pronounced gold doh-rey) is a bar of semi-purified gold (e.g. bullion). After being mined, the first stage in the purification process of the gold ore produces a cast bar (gold dore) that is approximately 90% gold. The other 10% is mostly metals like silver and copper.

GOLD FILLED
Gold filled (abbreviated G.F. or written as "doublé d'or") jewelry is made of a thin outer layer of gold atop a base metal. For example, jewelry marked 1/20 G.F. 12 Kt. is at least 1/20th gold and is layered with 12 karat gold. To be classified as gold-filled, a piece must be at least 1/20 gold by weight.

GOLD PLATED
Gold-plated metal has a very thin layer of gold on the surface, usually applied by the process of electroplating. Pieces that are gold plated are often marked G.E.P., gold electroplate, gold plated, or electro-plaqué d'or.

GOLD STONE
Goldstone (also known as aventurine) is a shimmering quartz stone that ranges in color from yellow to red to light green to light brown. The shimmer is caused by tiny metallic particles (mica) within the stone (not gold).

GREEN GOLD
Green gold is gold that has been alloyed with a higher percentage of silver than copper.

GREY GOLD
Grey gold is gold that has been alloyed with 15-20% iron.

HALLMARK
A hallmark is an official mark (or a series of marks) made in metal that indicates the fineness of the metal and the manufacturer's mark. For example, a hallmark of 925 indicates 925 parts of gold per 1000 weight. Other hallmarks indicate the maker of the piece and sometimes the year of manufacture. In many countries (like Britain) it is illegal to hallmark metal incorrectly; some countries are notoriously lax in their enforcement of hallmark honesty.

Karat Percent Gold
24 Kt. 100% Gold
18 Kt. 75% Gold
14 Kt. 58.3% Gold
10 Kt. 41.7%

KARAT
Karat (abbreviated Kt) is a measure of the fineness of gold. 24 karat gold is pure gold. 18 karat gold is 18/24 gold (about 75% gold - three quarters gold). 14 karat gold is 14/24 gold (about 58% gold - a little over half gold). 12 karat gold is exactly half gold. 10 karat gold is 10/24 gold (only about 43.5% gold - less than half gold).

KARATCLAD
Karatclad is a trademark for a very thick gold electroplating process; this type of plating is about 14 times thicker than standard electroplating.

LEAF
Metallic leaf is paper-thin sheets of metals. For example, Gold, silver, platinum, and copper are rolled or pounded into metallic leaf which can be applied to surfaces.

MALLEABLE
Malleable metals are easily worked with a hammer or a roller. Gold and sterling silver are very malleable metals.

NOBLE METALS
The noble metals are gold, platinum, and silver. These are metals that are relatively impervious to chemical action.

PINCHBECK
Pinchbeck (also known as "false gold") is a alloy of copper that looks like gold. Pinchbeck was invented by the British watchmaker Christopher Pinchbeck (1672-1732) in the early 18th century. Pinchbeck consists of 83% copper and 17% zinc. Ironically, there have been many imitations of Pinchbeck (which itself is an imitation).

PINK GOLD
Pink gold (also known as rose gold) is gold with a tinge of pink. It has been alloyed with a mix of 90% copper and 10% silver.

PLATING
Plating or electroplating (also called Galvanotechnics after its inventor, Luigi Galvani) is a process in which one metal is coated with another metal using electricity. In jewelry, inexpensive metals are frequently electroplated with more expensive metals, like gold (gold plating), copper (electrocoppering), rhodium (rhodanizing), chromium (chromium plating), or silver (silver plating). The thickness of the metal coat varies. Electrogilded coating is the thinnest (less than 0.000007 inches thick); gold-cased metals have a coating thicker that 0.000007 inches.

PYRITE
Pyrite (also known as fool's gold) is a shiny, metallic mineral that is a form of iron. Marcasite stones come from pyrite.

ROLLED GOLD
Rolled gold is a very thin sheet of gold that is laminated to a lesser metal (usually brass). The two layers of metal are heated under pressure to fuse them together. The sheet is them rolled into a very thin sheet and then used to make jewelry or other objects. Jewelry made from rolled gold wear well over time. Rolled gold pieces are marked rolled gold plate, R.G.P., or plaqué d'or laminé.

ROSE GOLD
Rose gold (also known as pink gold) is gold with a pink tinge. It has been alloyed with a mix of 90% copper and 10% silver.

RUSSIAN GOLD FINISH
A Russian gold finish is a matte, antique-look finish. Miriam Haskell jewelry often has a Russian gold (plated) finish.

Troy Unit Equivalence
1 pennyweight 24 grains = 1.5552 grams
1 Troy ounce = 20 pennyweight 31.1035 grams
1 Troy pound = 12 Troy ounces 373.24 grams

TROY WEIGHT
Precious metals (like gold, platinum, and silver) are measured in troy weight, which has units of pennyweights, ounces, and pounds. Troy ounces and pounds are different from everyday US measures.

VERMEIL
Vermeil is gold-plated silver. Less occasionally, gold-plated bronze is referred to as vermeil. The Coro dragonfly pin above is gold-plate over silver.

WHITE GOLD
White gold is gold that has been alloyed with a mix of nickel, zinc, copper, tin, and manganese.

YELLOW GOLD
Yellow gold is gold that has been alloyed with a mix of 50% copper and 50% silver.

YGF
YGF is an abbreviation for yellow gold filled.

General info

2007-11-07T08:33:00.001-08:00

Symbolism

2007-11-07T07:55:00.004-08:00

Symbolism
Three Gold Sovereigns with a Krugerrand
Swiss-cast 1 kg gold bar.

Gold has been associated with the extremities of utmost evil and great sanctity throughout history. In the Book of Exodus, the Golden Calf is a symbol of idolatry and rebellion against God. In Communist propaganda, the golden pocket watch and its fastening golden chain were the characteristic accessories of the class enemy, the bourgeois and the industrial tycoons. Credit card companies associate their product with wealth by naming and coloring their top-of-the-range cards “gold;” although, in an attempt to out-do each other, platinum (and the even-more-elite black card) has now overtaken gold.

On the other hand in the Book of Genesis, Abraham was said to be rich in gold and silver, and Moses was instructed to cover the Mercy Seat of the Ark of the Covenant with pure gold. Eminent orators such as John Chrysostom were said to have a “mouth of gold with a silver tongue.” Gold is associated with notable anniversaries, particularly in a 50-year cycle, such as a golden wedding anniversary, golden jubilee, etc.

Great human achievements are frequently rewarded with gold, in the form of medals and decorations. Winners of races and prizes are usually awarded the gold medal (such as the Olympic Games and the Nobel Prize), while many award statues are depicted in gold (such as the Academy Awards, the Golden Globe Awards the Emmy Awards, the Palme d'Or, and the British Academy Film Awards).

Medieval kings were inaugurated under the signs of sacred oil and a golden crown, the latter symbolizing the eternal shining light of heaven and thus a Christian king's divinely inspired authority. Wedding rings are traditionally made of gold; since it is long-lasting and unaffected by the passage of time, it is considered a suitable material for everyday wear as well as a metaphor for the relationship. In Orthodox Christianity, the wedded couple is adorned with a golden crown during the ceremony, an amalgamation of symbolic rites.

The symbolic value of gold varies greatly around the world, even within geographic regions. For example, gold is quite common in Turkey but considered a most valuable gift in Sicily.

From most ancient times, gold has been connected to religion and spirituality, especially associated with the Sun. It was also seen as the best material to decorate religious imagery, all over history.

Isotopes

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Isotopes
Main article: isotopes of gold

There is one stable isotope of gold, and 18 radioisotopes with 195Au being the most stable with a half-life of 186 days.

Gold has been proposed as a "salting" material for nuclear weapons (cobalt is another, better-known salting material). A jacket of natural gold, irradiated by the intense high-energy neutron flux from an exploding thermonuclear weapon, would transmute into the radioactive isotope Au-198 with a half-life of 2.697 days and produce approximately .411 MeV of gamma radiation, significantly increasing the radioactivity of the weapon's fallout for several days. Such a weapon is not known to have ever been built, tested, or used.

Compounds

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Compounds

Although gold is a noble metal, it forms many and diverse compounds. The oxidation state of gold in its compound ranges from -1 to 5+ but Au(I) and Au(III) dominate. Gold(I), referred to as the aurous ion, is the most common oxidation state with “soft” ligands such as thioethers, thiolates, and tertiary phosphines. Au(I) compounds are typically linear. A good example is Au(CN)2–, which is the soluble form of gold encountered in mining. Curiously, aurous complexes of water are rare. The binary Gold Halides, such as AuCl, form zig-zag polymeric chains, again featuring linear coordination at Au. Most drugs based on gold are Au(I) derivatives.[18]

Gold(III) (“auric”) is a common oxidation state and is illustrated by gold(III) chloride, AuCl3. Its derivative is chloroauric acid, HAuCl4, which forms when Au dissolves in aqua regia. Au(III) complexes, like other d8 compounds, are typically square planar.

Less common oxidation states: Au(-I), Au(II), and Au(V)

Compounds containing the Au- anion are called aurides. Caesium auride, CsAu which crystallizes in the caesium chloride motif. Other aurides include those of Rb+, K+, and tetramethylammonium (CH3)4N+.[19] Gold(II) compounds are usually diamagnetic with Au-Au bonds such as [Au(CH2)2P(C6H5)2]2Cl2. A noteworthy, legitimate Au(II) complex contains xenon as a ligand, [AuXe4](Sb2F11)2.[20] Gold pentafluoride is the sole example of Au(V), the highest verified oxidation state.[21]

Some gold compounds exhibit aurophilic bonding, which describes the tendency of gold ions to interact at distances that are too long to be a conventional Au-Au bond but shorter that van der Waals bonding. The interaction is estimated to be comparable in strength to that of a hydrogen bond.

Mixed valence compounds

Well-defined cluster compounds are numerous.[19] In such cases, gold has a fractional oxidation state. A representative example is the octahedral species {Au(P(C6H5)3)}62+. Gold chalcogenides, e.g. "AuS" feature equal amounts of Au(I) and Au(III).

Price

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Price
Main articles: Gold as an investment and Gold standard
LBMA USD morning price fixings ($US per troy ounce) since 2001

Like other precious metals, gold is measured by troy weight and by grams. When it is alloyed with other metals the term carat or karat is used to indicate the amount of gold present, with 24 karats being pure gold and lower ratings proportionally less. The purity of a gold bar can also be expressed as a decimal figure ranging from 0 to 1, known as the millesimal fineness, such as 0.995 being very pure.

The price of gold is determined on the open market, but a procedure known as the Gold Fixing in London, originating in September 1919, provides a daily benchmark figure to the industry. The afternoon fixing appeared in 1968 to fix a price when US markets are open.

The high price of gold is due to its rare amount. Only three parts out of every billion (0.000000003) in the Earth's crust is gold.
Gold price per ounce in USD since 1968, in actual US$ and 2006 US$

Historically gold was used to back currency; in an economic system known as the gold standard, a certain weight of gold was given the name of a unit of currency. For a long period, the United States government set the value of the US dollar so that one troy ounce was equal to $20.67 ($664.56/kg), but in 1934 the dollar was revalued to $35.00 per troy ounce ($1125.27/kg). By 1961 it was becoming hard to maintain this price, and a pool of US and European banks agreed to manipulate the market to prevent further currency devaluation against increased gold demand.

On 17 March 1968, economic circumstances caused the collapse of the gold pool, and a two-tiered pricing scheme was established whereby gold was still used to settle international accounts at the old $35.00 per troy ounce ($1.13/g) but the price of gold on the private market was allowed to fluctuate; this two-tiered pricing system was abandoned in 1975 when the price of gold was left to find its free-market level. Central banks still hold historical gold reserves as a store of value although the level has generally been declining. The largest gold depository in the world is that of the U.S. Federal Reserve Bank in New York, which holds about 3% of the gold ever mined, as does the similarly-laden U.S. Bullion Depository at Fort Knox.

Since 1968 the price of gold on the open market has ranged widely, with a record high of $850/oz ($27,300/kg) on 21 January 1980, to a low of $252.90/oz ($8,131/kg) on 21 June 1999 (London Fixing).[14] On 11 May 2006 the London gold fixing was $715.50/oz ($23,006/kg).[15]

In 2005 the World Gold Council estimated total global gold supply to be 3,859 tonnes and demand to be 3,754 tonnes, giving a surplus of 105 tonnes.[16]

2007 28-yr high

On October 1, 2007, gold hit a 28-year high against the U.S. dollar due to the dollar's off to record lows versus the euro: spot gold was up at $743.70 per ounce (its highest since January 1980).[17]

Production

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Production

Economic gold extraction can be achieved from ore grades as little as 0.5 g/1000 kg (0.5 parts per million, ppm) on average in large easily mined deposits. Typical ore grades in open-pit mines are 1–5 g/1000 kg (1–5 ppm), ore grades in underground or hard rock mines are usually at least 3 g/1000 kg (3 ppm) on average. Since ore grades of 30 g/1000 kg (30 ppm) are usually needed before gold is visible to the naked eye, in most gold mines the gold is invisible.

Since the 1880s, South Africa has been the source for a large proportion of the world’s gold supply, with about 50% of all gold ever produced having come from South Africa. Production in 1970 accounted for 79% of the world supply, producing about 1,000 tonnes. However by 2005 production was just 294 tonnes according to the British Geological Survey. This sharp decline was due to the increasing difficulty of extraction and changing economic factors affecting the industry in South Africa.

The city of Johannesburg located in South Africa was founded as a result of the Witwatersrand Gold Rush which resulted in the discovery of some of the largest gold deposits the world has ever seen. Gold fields located within the basin in the Free State and Gauteng provinces are extensive in strike and dip requiring some of the world's deepest mines, with the Savuka and TauTona mines being currently the world's deepest gold mine at 3,777 m. The Second Boer War of 1899–1901 between the British Empire and the Afrikaner Boers was at least partly over the rights of miners and possession of the gold wealth in South Africa.

Other major producers are United States, Australia, China, Russia and Peru. Mines in South Dakota and Nevada supply two-thirds of gold used in the United States. In South America, the controversial project Pascua Lama aims at exploitation of rich fields in the high mountains of Atacama Desert, at the border between Chile and Argentina. Today about one-quarter of the world gold output is estimated to originate from artisanal or small scale mining.[11]

After initial production, gold is often subsequently refined industrially by the Wohlwill process or the Miller process. Other methods of assaying and purifying smaller amounts of gold include parting and inquartation as well as cuppelation, or refining methods based on the dissolution of gold in aqua regia.

The world's oceans hold a vast amount of gold, but in very low concentrations (perhaps 1–2 parts per 10 billion). A number of people have claimed to be able to economically recover gold from sea water, but so far they have all been either mistaken or crooks. Reverend Prescott Jernegan ran a gold-from seawater swindle in America in the 1890s. A British fraud ran the same scam in England in the early 1900s.[12]

Fritz Haber (the German inventor of the Haber process) attempted commercial extraction of gold from sea water in an effort to help pay Germany's reparations following the First World War. Unfortunately, his assessment of the concentration of gold in sea water was unduly high, probably due to sample contamination. The effort produced little gold and cost the German government far more than the commercial value of the gold recovered. No commercially viable mechanism for performing gold extraction from sea water has yet been identified. Gold synthesis is not economically viable and is unlikely to become so in the foreseeable future.

The average gold mining and extraction costs are $238 per troy ounce but these can vary widely depending on mining type and ore quality. In 2001, global mine production amounted to 2,604 tonnes, or 67% of total gold demand in that year. At the end of 2001, it was estimated that all the gold ever mined totalled 145,000 tonnes.[13]

History

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History

Gold has been known and highly-valued since prehistoric times. It may have been the first metal used by humans and was valued for ornamentation and rituals. Egyptian hieroglyphs from as early as 2600 BC describe gold, which king Tushratta of the Mitanni claimed was "more plentiful than dirt" in Egypt.[6] Egypt and Nubia had the resources to make them major gold-producing areas for much of history. Gold is also mentioned several times in the Old Testament, and is included with the gifts of the magi in the first chapters of Matthew New Testament The south-east corner of the Black Sea was famed for its gold. Exploitation is said to date from the time of Midas, and this gold was important in the establishment of what is probably the world's earliest coinage in Lydia between 643 and 630 BC.

The Mali Empire in Africa was famed throughout the old world for its large amounts of gold. Mansa Musa, ruler of the empire (1312–1337) became famous throughout the old world for his great hajj to Mecca in 1324. When he passed through Cairo in July of 1324, he was reportedly accompanied by a camel train that included thousands of people and nearly a hundred camels. He gave away so much gold that it took over a decade for the economy across North Africa to recover, due to the rapid inflation that it initiated.[7] A contemporary Arab historian remarked;“ Gold was at a high price in Egypt until they came in that year. The mithqal did not go below 25 dirhams and was generally above, but from that time its value fell and it cheapened in price and has remained cheap till now. The mithqal does not exceed 22 dirhams or less. This has been the state of affairs for about twelve years until this day by reason of the large amount of gold which they brought into Egypt and spent there [...] ”

—Chihab Al-Umari[8]

The European exploration of the Americas was fueled in no small part by reports of the gold ornaments displayed in great profusion by Native American peoples, especially in Central America, Peru, and Colombia.

Although the price of some platinum group metals can be much higher, gold has long been considered the most desirable of precious metals, and its value has been used as the standard for many currencies (known as the gold standard) in history. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties. Gold as a sign of wealth and prestige was made fun of by Thomas More in his treatise Utopia. On that imaginary island, gold is so abundant that it is used to make chains for slaves, tableware and lavatory-seats. When ambassadors from other countries arrive, dressed in ostentatious gold jewels and badges, the Utopians mistake them for menial servants, paying homage instead to the most modestly-dressed of their party.

There is an age-old tradition of biting gold in order to test its authenticity. Although this is certainly not a professional way of examining gold, the bite test should score the gold because gold is considered a soft metal according to the Mohs' scale of mineral hardness. The purer the gold the easier it should be to mark it. Painted lead can cheat this test because lead is softer than gold (and may invite a small risk of lead poisoning if sufficient lead is absorbed by the biting).
This 156 ounce nugget was found by an individual prospector in the Southern California Desert using a metal detector.

Gold in antiquity was relatively easy to obtain geologically; however, 75% of all gold ever produced has been extracted since 1910.[9] It has been estimated that all the gold in the world that has ever been refined would form a single cube 20 m (66 ft) on a side (equivalent to 8000 m³).[9]

One main goal of the alchemists was to produce gold from other substances, such as lead — presumably by the interaction with a mythical substance called the philosopher's stone. Although they never succeeded in this attempt, the alchemists promoted an interest in what can be done with substances, and this laid a foundation for today's chemistry. Their symbol for gold was the circle with a point at its center (☉), which was also the astrological symbol, the Egyptian hieroglyph and the ancient Chinese character for the Sun. For modern attempts to produce artificial gold, see gold synthesis.

During the 19th century, gold rushes occurred whenever large gold deposits were discovered. The first major gold strike in the United States occurred in a small north Georgia town called Dahlonega.[10] Further gold rushes occurred in California, Colorado, Otago, Australia, Witwatersrand, Black Hills, and Klondike.

Because of its historically high value, much of the gold mined throughout history is still in circulation in one form or another.

Gold in Chinese is spelled 金.

Applications

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Applications

As the metal

Medium of monetary exchange. In various countries, gold is used as a standard for monetary exchange, in coinage and in jewelry. Pure gold is too soft for ordinary use and is typically hardened by alloying with copper or other base metals. The gold content of gold alloys is measured in carats (k), pure gold being designated as 24k.

Gold coins intended for circulation from 1526 into the 1930s were typically a standard 22k alloy called crown gold, for hardness. Modern collector/investment bullion coins (which do not require good mechanical wear properties) are typically 24k, although the American Gold Eagle and British gold sovereign continue to be made at 22k, on historical tradition. The Canadian Gold Maple Leaf coin contains the highest purity gold of any popular bullion coin, at 99.999% (.99999 fine). Several other 99.99% pure gold coins are currently available, including Australia's Gold Kangaroos (first appearing in 1986 as the Australian Gold Nugget, with the kangaroo theme appearing in 1989), the several coins of the Australian Lunar Calendar series, and the Austrian Philharmonic. In 2006, the U.S. Mint began production of the American Buffalo gold bullion coin also at 99.99% purity.

Today, gold has fallen out of use in coins made for general circulation.

Jewelry. Because of the softness of pure (24k) gold, it is usually alloyed with base metals for use in jewelry, altering its hardness and ductility, melting point, color and other properties. Alloys with lower "k", typically 22k, 18k, 14k or 10k, contain higher percentages of copper, silver or other base metals in the alloy. Copper is the most commonly used base metal, yielding a redder metal. Eighteen carat gold containing 25% copper is found in antique and Russian jewelry and has a distinct, though not dominant, copper cast, creating rose gold. Fourteen carat gold-copper alloy is nearly identical in color to certain bronze alloys, and both may be used to produce police and other badges. Blue gold can be made by alloying with iron and purple gold can be made by alloying with aluminum, although rarely done except in specialized jewelry. Fourteen and eighteen carat gold alloys with silver alone appear greenish-yellow and are referred to as green gold. White gold alloys can be made with palladium or nickel. White 18 carat gold containing 17.3% nickel, 5.5% zinc and 2.2% copper is silver in appearance. Nickel is toxic, however, and its release from nickel white gold is controlled by legislation in Europe. Alternative white gold alloys are available based on palladium, silver and other white metals (World Gold Council), but the palladium alloys are more expensive than those using nickel. High-carat white gold alloys are far more resistant to corrosion than are either pure silver or sterling silver. The Japanese craft of Mokume-gane exploits the colour contrasts between laminated colored gold alloys to produce decorative wood-grain effects.

Other uses:
In medieval times, gold was often seen as beneficial for the health, in the belief that something that rare and beautiful could not be anything but healthy. Even some modern esotericists and forms of alternative medicine assign metallic gold a healing power. Some gold salts do have anti-inflammatory properties and are used as pharmaceuticals in the treatment of arthritis and other similar conditions. However, only salts and radioisotopes of gold are of pharmacological value, as elemental (metallic) gold is inert to all chemicals it encounters inside the body.
Gold leaf, flake or dust is used on and in some gourmet foodstuffs, notably sweets and drinks as decorative ingredient.[2] Gold flake was used by the nobility in Medieval Europe as a decoration in foodstuffs and drinks, in the form of leafs, flakes or dust, either to demonstrate the host's wealth or in the honest belief that something that valuable and rare must be beneficial for one's health.
Gold solder is used for joining the components of gold jewelry by high-temperature hard soldering or brazing. If the work is to be of hallmarking quality, gold solder must match the carat weight of the work, and alloy formulae are manufactured in most industry-standard carat weights to color match yellow and white gold. Gold solder is usually made in at least three melting-point ranges referred to as Easy, Medium and Hard. By using the hard, high-melting point solder first, followed by solders with progressively lower melting points, goldsmiths can assemble complex items with several separate soldered joints.
Gold can be used in food and has the E Number 175. Goldwasser (German: "Goldwater") is a traditional herbal liqueur produced in Gdańsk, Poland and Schwabach, Germany and contains flakes of gold leaf. There are also some expensive (~$1000) cocktails which contain flakes of gold leaf. However, since metallic gold is inert to all body chemistry, it adds no taste nor has it any other nutritional effect and leaves the body unaltered.
Dentistry. Gold alloys are used in restorative dentistry, especially in tooth restorations, such as crowns and permanent bridges. The gold alloys' slight malleability facilitates the creation of a superior molar mating surface with other teeth and produces results that are generally more satisfactory than those produced by the creation of porcelain crowns. The use of gold crowns in more prominent teeth such as incisors is favored in some cultures and discouraged in others.
Gold can be made into thread and used in embroidery.
Gold is ductile and malleable, meaning it can be drawn into very thin wire and can be beaten into very thin sheets known as gold leaf.
Gold produces a deep, intense red color when used as a coloring agent in glass.
In photography, Gold toners are used to shift the color of silver bromide black and white prints towards brown or blue tones, or to increase their stability. Used on sepia-toned prints, gold toners produce red tones. Kodak publish formulae for several types of gold toners, which use gold as the chloride (Kodak, 2006).
Electronics. The concentration of free electrons in gold metal is 5.90×1022 cm-3. Gold is highly conductive to electricity, and has been used for electrical wiring in some high energy applications (silver is even more conductive per volume, but gold has the advantage of corrosion resistance). For example, gold electrical wires were used during some of the Manhattan Project's atomic experiments, but large high current silver wires were used in the calutron isotope separator magnets in the project.
Though gold is attacked by free chlorine, its good conductivity and general resistance to oxidation and corrosion in other environments (including resistance to non-chlorinated acids) has led to its widespread industrial use in the electronic era as a thin layer coating electrical connectors of all kinds, thereby ensuring good connection. For example, gold is used in the connectors of the more expensive electronics cables, such as audio, video and USB cables. The benefit of using gold over other connector metals such as tin in these applications, is highly debated. Gold connectors are often criticized by audio-visual experts as unnecessary for most consumers and seen as simply a marketing ploy. However, the use of gold in other applications in electronic sliding contacts in highly humid or corrosive atmospheres, and in use for contacts with a very high failure cost (certain computers, communications equipment, spacecraft, jet aircraft engines) remains very common, and is unlikely to be replaced in the near future by any other metal.
Besides sliding electrical contacts, gold is also used in electrical contacts because of its resistance to corrosion, electrical conductivity, ductility and lack of toxicity.[3] Switch contacts are generally subjected to more intense corrosion stress than are sliding contacts.
Colloidal gold (Colloidal sols of gold nanoparticles) in water are intensely red-colored, and can be made with tightly-controlled particle sizes up to a few tens of nm across by reduction of gold chloride with citrate or ascorbate ions. Colloidal gold is used in research applications in medicine, biology and materials science. The technique of immunogold labeling exploits the ability of the gold particles to adsorb protein molecules onto their surfaces. Colloidal gold particles coated with specific antibodies can be used as probes for the presence and position of antigens on the surfaces of cells (Faulk and Taylor 1979). In ultrathin sections of tissues viewed by electron microscopy, the immunogold labels appear as extremely dense round spots at the position of the antigen (Roth et al. 1980). Colloidal gold is also the form of gold used as gold paint on ceramics prior to firing.
Gold, or alloys of gold and palladium, are applied as conductive coating to biological specimens and other non-conducting materials such as plastics and glass to be viewed in a scanning electron microscope. The coating, which is usually applied by sputtering with an argon plasma, has a triple role in this application. Gold's very high electrical conductivity drains electrical charge to earth, and its very high density provides stopping power for electrons in the SEM's electron beam, helping to limit the depth to which the electron beam penetrates the specimen. This improves definition of the position and topography of the specimen surface and increases the spatial resolution of the image. Gold also produces a high output of secondary electrons when irradiated by an electron beam, and these low-energy electrons are the most commonly-used signal source used in the scanning electron microscope.
Many competitions, and honors, such as the Olympics and the Nobel Prize, award a gold medal to the winner.
As gold is a good reflector of both infrared and visible light, it is used for the protective coatings on many artificial satellites and in infrared protective faceplates in thermal protection suits and astronauts' helmets.
Gold is used as the reflective layer on some high-end CDs.
The isotope gold-198, (half-life: 2.7 days) is used in some cancer treatments and for treating other diseases.[4]
Automobiles may use gold for heat insulation. McLaren F1 uses gold foil in the engine compartment.[5]

As gold chemical compounds

Gold is attacked by and dissolves in alkaline solutions of potassium or sodium cyanide, and gold cyanide is the electrolyte used in commercial electroplating of gold onto base metals and electroforming. Gold chloride (chloroauric acid) solutions are used to make colloidal gold by reduction with citrate or ascorbate ions. Gold chloride and gold oxide are used to make highly-valued cranberry or red-colored glass, which, like colloidal gold sols, contains evenly-sized spherical gold nanoparticles.

Characteristics

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Characteristics

Gold is the most malleable and ductile metal; a single gram can be beaten into a sheet of one square meter, or an ounce into 300 square feet. Gold leaf can be beaten thin enough to become translucent. The transmitted light appears greenish blue, because gold strongly reflects yellow and red. Gold readily forms alloys with many other metals. These alloys can be produced to increase the hardness or to create exotic colors (see below). Native gold contains usually eight to ten percent silver, but often much more — alloys with a silver content over 20% are called electrum. As the amount of silver increases, the color becomes whiter and the specific gravity becomes lower.

Gold is a good conductor of heat and electricity, and is not affected by air and most reagents. Heat, moisture, oxygen, and most corrosive agents have very little chemical effect on gold, making it well-suited for use in coins and jewelry; conversely, halogens will chemically alter gold, and aqua regia dissolves it via formation of the chloraurate ion.

Common oxidation states of gold include +1 (gold(I) or aurous compounds) and +3 (gold(III) or auric compounds). Gold ions in solution are readily reduced and precipitated out as gold metal by adding any other metal as the reducing agent. The added metal is oxidized and dissolves allowing the gold to be displaced from solution and be recovered as a solid precipitate.

Recent research undertaken by Sir Frank Reith of the Australian National University shows that microbes play an important role in forming gold deposits, transporting and precipitating gold to form grains and nuggets that collect in alluvial deposits.[1]

High quality pure metallic gold is tasteless, in keeping with its resistance to corrosion (it is metal ions which confer taste to metals).

In addition, gold is very dense, a cubic meter weighing 19300 kg. By comparison, the density of lead is 11340 kg/m³, and the densest element, Iridium, is 22650 kg/m³.

Toxicity

Generally gold is not harmful if consumed and is sometimes used as a food decoration in the form of gold leaf. However, consumption and accumulation of large amounts of gold (or gold compounds) in the body can still be toxic and the symptoms are similar to those of heavy metal poisoning.

Gold

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Gold

Gold (IPA: [ɡəʊɫd]) is a chemical element with the symbol Au (from the Latin aurum, meaning shining dawn) and atomic number 79. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. It is one of the coinage metals. Gold is dense, soft, shiny and the most malleable and ductile of the known metals. Pure gold has a bright yellow color traditionally considered attractive.

Gold forms the basis for a monetary standard used by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS). The ISO currency code of gold bullion is XAU. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.

Chemically, gold is a trivalent and univalent transition metal. Gold does not react with most chemicals, but is attacked by chlorine, fluorine, aqua regia and cyanide. Gold dissolves in mercury, forming amalgam alloys, but does not react with it. Gold is insoluble in nitric acid, which will dissolve silver and base metals, and this is the basis of the gold refining technique known as "inquartation and parting". Nitric acid has long been used to confirm the presence of gold in items, and this is the origin of the colloquial term "acid test," referring to a gold standard test for genuine value.