Gold By Rcdohare

THE GOLD By RC Dohare B.E.(Mech), PGDCSC, M.E.(E.S.E.) A very ductile and malleable, brilliant yellow precious metal that is resistant to air And water corrosion .It is a precious metal that is very soft when pure (24 Kt.). Gold is the most malleable (hammer able) and ductile (able to be made into wire) metal. Gold is alloyed (mixed with other metals, usually silver and copper) to make it less expensive and harder. The purity of gold jewelry is measured in karats. Some countries hallmark gold with a three-digit number that indicates the parts per thousand of gold. In this system, "750" means 750/1000 gold (equal to 18K); "500" means 500/1000 gold (equal to 12K). Alloyed gold comes in many colors.

India in World Gold Industry (Rounded Figures)

India (In Tons)

World (In Tons)

% Share

Total Stocks

13000

145000

9

Central Bank holding

400

28000

1.4

Annual Production

2

2600

0.08

Annual Recycling

100-300

1100-1200

13

Annual Demand

800

3700

22

Annual Imports

600

Annual Exports

60

Indian Gold Market • •

Gold is valued in India as a savings and investment vehicle and is the second preferred investment after bank deposits. India is the world's largest consumer of gold in jewellery as investment.

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• • •

• •

In July 1997 the RBI authorized the commercial banks to import gold for sale or loan to jewellers and exporters. At present, 13 banks are active in the import of gold. This reduced the disparity between international and domestic prices of gold from 57 percent during 1986 to 1991 to 8.5 percent in 2001. The gold hoarding tendency is well ingrained in Indian society. Domestic consumption is dictated by monsoon, harvest and marriage season. Indian jewellery offtake is sensitive to price increases and even more so to volatility. In the cities gold is facing competition from the stock market and a wide range of consumer goods. Facilities for refining, assaying, making them into standard bars in India, as compared to the rest of the world, are insignificant, both qualitatively and quantitatively.

Major gold producing countries • • • • • • • • • • • • • • • • • • • •

South Africa United States Australia China Canada Russia Indonesia Peru Uzbekistan Papua New Guinea Ghana Brazil Chile Philippines Mali Mexico Argentina Kyrgyzstan Zimbabwe Colombia

Gold conversion To Convert Weight

Multiply by

Ounces troy to grammes

31.1035

Grammes to ounces troy

0.0321507

Ounces avoirdupois to grammes

28.3495

Grammes to ounces avoirdupois

0.035274

Ounces troy to grains

480

Grains to ounces troy

0.0020833

Ounces troy to ounces avoirdupois

1.09714

Ounces avoirdupois to ounces troy

0.911458

Kilograms to ounces avoirdupois

35.274

Kilograms to ounces troy

32.1507

Ounces troy to tolas

2.6667

Tolas to ounces troy

0.375

Kilograms to tolas

85.755

Ounces troy to taels

0.83

Taels to ounces troy

1.20337

Kilograms to taels

26.7172

For example : 10 ounces troy = 311.035 grammes

The purity of gold artcles is generally described in three ways Percent % (Parts of gold per 100)

Fineness(Parts of gold per Karats(Parts of gold 1000) per 24)

100%

999 Fine

24 Karats

91.70%

917 Fine

22 Karats

75.00%

750 Fine

18 Karats

58.50%

583 Fine

14 Karats

41.60%

416 Fine

10 Karats

Gold coated measures Many gold-coated articles are also used as substitutes for solid karat gold. The thickness of the coatings are often expressed in millionths of an inch, or microinches, and the table below provides a way to translate between these and other measurement units. 1 millionth inch (microinch) = 0.0254 micron 1 thousanth inch (mil) = 25.4 microns 1 millionth meter (micron) = 39.37 microinches 1 millimeter = 39.37 mils

Fine

gold

content

The minimum fineness is 995 parts per 1000 fine gold and gold said to be 1000 fine is marked down to 999.9 fine. The following fine gold contents of other bar weights are accepted by the London Bullion Market Association (LBMA). These bars are available at the spot Loco-London price plus a premium which varies dependent on prevailing market conditions in different locations.

Fine Gold Contents in Ounces Troy Gross Weight

Bars of 995.0

Bars of 999.0

Bars of 999.9

1 Kilo

31.99

32.119

32.148

1/2 Kilo

15.995

16.059

16.074

100 Grams

3.199

3.212

3.215

50 Grams

1.6

1.607

1.608

10 Grams

0.321

0.322

0.322

5 Grams

0.161

0.161

0.161

10 Tolas

3.731

3.746

3.75

5Taels

5.987

6.011

6.017

Jewellery consumption (tons) Top No.

Countries

1998

1999

2000

1

India

622

617

600

2

United States

379

400

409

3

EU

414

395

374

4

China

228

204

184

5

Saudi Arabia

186

167

169

6

Egypt

135

138

128

7

Turkey

142

92

126

8

Italy

108

101

92

9

Indonesia

48

110

88

10

United Kingdom

65

68

74

11

Taiwan

66

66

60

12

Korea

35

52

56

13

Pakistan

53

60

54

14

France

56

56

54

15

Spain

61

53

51

16

Mexico

32

42

51

17

Thailand

21

42

51

18

Russia

44

40

47

19

Iran

42

41

45

20

Japan

45

43

43

GOLD THROUGH THE AGES The history of gold begins in remote antiquity. But without hard archaeological evidence to pinpoint the time and place of man's first happy encounter with the yellow metal, we can only conjecture about those persons, who at various places and at different times first came upon native gold. Experts of fossil study have observed that bits of natural gold were found in Spanish caves used by the Paleolithic Man about 40,000 B.C. Consequently, it is not surprising that historical sources cannot agree on the precise date that gold was first used. One states that gold's recorded discovery occurred circa 6000 B.C. Another mentions that the pharaohs and temple priests used the relic metal for adornment in ancient Egypt circa 3000 B.C. However, it is curious to note that the early Egyptian's medium of exchange was not gold but barley. The first use of gold as money in 700 B.C. is claimed by the citizens of the Kingdom of Lydia (western Turkey). Surely, you remember the kingdom of the famous fortune seeking King Croesus circa 550 B.C.

Uses of gold Gold has been prized by people since the earliest times for making statues and icons and also for jewelry to adorn their bodies. Intricately sculptured art objects and adornment jewelry have been uncovered in the Sumerian royal Tombs in southern Iraq and the tombs of Egyptian kings. Significant buildings and religious temples and statues have been covered with thinly beaten sheets of gold. Due to its rarity, gold has long been considered a symbol of the wealth and power of its possessor.

In 2001, it was estimated that 2870 tons of gold were produced worldwide. About 80 percent of that gold production was used to make jewelry, the majority of which was sold in India, Europe and the United States of America. Gold jewelry is universally popular, loved for its lustrous yellow color and untarnishing character. In many Asian countries, such as India, Thailand, and China, gold is important to religious ceremonies and social occasions, such as the Chinese New Year and Hindu marriages in India. Tons of gold was used in the decoration of famous golden temple of Amritshar India. Also In southern city of used gold for the decoration of Lard Temple in History of gold prices (in rupees): 1930: 1940: 1950: 1960:

18 per 10 gram 36 per 10 gram 100 per 10 gram 111 per 10 gram

1970: 184 per 10 gram 1975: 540 per 10 gram 2000: 3,000 per 10 gram 2006: 5,400 per 10 gram 2009: 15,700 per 10 gram.

GOLD COINS

US $160 Million Gold Temple Inaugurated in Vellore, South India Vellore: One of the biggest Hindu shrines in southern India, the Sri Puram Golden Temple a grand golden temple built by a spiritual organization in Tamil Nadu at an approximate cost of US$160 million (Rs 600 crore), the consecration (kumbhabhishekam) was performed on August 24, 2007, presence of over 30,000 devotees. The Mahalakshmi temple, located on a sprawling 100 acres of land at Sripuram, near Vellore, about 125 km from Chennai, has been constructed by Vellore-based Sri Narayani Peetam, headed by spiritual leader Sri Sakthi Amma. "The Taj Mahal was built as an expression of love for a single person but the Sri Puram Golden Temple stands for unconditional love for the entire humanity," says Amma, 31, who also goes by the name of Shakti Siddha. The temple, covering 55,000 sq ft area, has intricate carvings and sculptures in gold. Except the walking path, the entire structure has been covered with gold and copper. This would be more grandeur than the Golden Temple in Amritsar, mutt sources said. About 400 goldsmiths and coppersmiths, including craftsmen from Tirumala-Tirupati Devasthanams, have completed the architectural marvel in gold in six years. More than one and one-half ton of pure gold was glitter and gleam under the sun, Devotees hail the temple as "one of the wonders of the world," and say that it is the only temple covered fully with gold.

THE GOLDEN TEMPLE OF AMRITSHAR

The Golden Temple is a two-storey building. The lower building is marble clad, and decorated with flower and animal motifs. The upper storey is gold plated. At the top is the golden dome. It is shaped like an inverted lotus. It is said to be gilded with 100 kg of pure gold. The Golden Temple was built during the term of the fifth Sikh Guru, Guru Arjan Dev (1581-1606). It stands in the midst of a water tank that had earlier been escavated by the fourth guru, Guru Ram Das (1574-1581). The site was once a forest. It is believed that the great Indian poet Valmiki wrote the Ramayana here. It was here that Sita was banished, and it was also here that her sons Luv and Kush heard these legends of their forefathers. Gautama Buddha is also believed to have visited this site. Today, however, it is the holiest site for the Sikhs.