GOLD

GOLD

LEARN/KNOW MORE ABOUT THIS DUCTILABLE METAL

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 (hammerable) 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.

• World Gold Markets
• London as the great clearing house
• New York as the home of futures trading
• Zurich as a physical turntable
• Istanbul, Dubai, Singapore and Hong Kong as doorways to important consuming regions.
• Tokyo where TOCOM sets the mood of Japan
• Mumbai under India's liberalized gold regime 24 hours round the clock market
• Hong Kong Gold Market
• Zurich Gold Market
• London Gold Market
• New York Market India in World Gold Industry

• 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.

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 Main features of Key Asian Gold Markets

Country
Market status
Loco london gold trading
Import of gold bars
China
Restricted
Restricted
Hong Kong
Free
Free
India
Restricted
Restricted
Indonesia
Free
Free
Japan
Free
Free
Korea. North
Restricted
Restricted
Korea, South
Restricted
Free
Malaysia
Free
Free
Myanmar
Restricted
Free
Philippines
Restricted
Restricted
Singapore
Free
Free
Taiwan
Restricted
Free
Thailand
Restricted
Free
Vietnam
Restricted
Free 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
26.7172For example : 10 ounces troy = 311.035 grammesMarket Moving Factors
Above ground supply from sales by central banks, reclaimed scrap and official gold loans
Producer / miner hedging interest

World macro-economic factors - US Dollar, Interest rate
Comparative returns on stock markets
Domestic demand based on monsoon and agricultural output The purity of gold artcles is generally described in three ways
Percent % (Parts of gold per 100)
Fineness(Parts of gold per 1000)
Karats(Parts of gold 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 KaratsGold coated measuresMany 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 contentThe 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
6.017Jewellery consumption
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 AGESThe 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.

SOURCE:-http://finance.indiamart.com/markets/commodity/gold.html