Tuesday 16 September 2008
Gold Bar Prices
Gold bar prices depend of course on the gold price at any given time. As the value of gold increases so the value of the gold bar increases. The premium, how much you pay over spot gold is made up of, the manufacturing costs, the gold bar dealers costs and profit. You also have to take into consideration the shipping and insurance costs. Their may, in some countries or US states, be a tax to take into account also. You should buy the highest gold bar weight you can afford as you will pay less premium per ounce or kilo that way. As the gold bar price goes up, the premium per ounce decreases also. However, you may want to buy smaller one ounce gold bars if you think you may need to sell some of your gold bars from time to time to cover unexpected expenses. Often the premium for ounce gold bars is not that much higher than for the larger gold bars. Unless you absolutely have to, I recommend you do not sell gold bars for national fiat currency as the value of fiat currency (paper money) is deteriorating rapidly and, although you might get more fiat currency than you paid for your gold, its value will dwindle from the moment you get it.
Where to Buy Gold Bars
You can buy gold bars from gold dealers, mints, foundries even, as well as from private individuals, auctions and the like. The same basic principles for buying gold apply regardless of whether you buy gold bars in New York, Washington or anywhere on the planet. Here are some basic principles you can use to ensure you get the best deal and the best gold for your buck. 1. Buy the biggest gold bar or bars you can afford. The bigger the bar the smaller the premium you will pay per ounce. This will reduce the gold bar price per ounce. 2. Pick established or accredited gold dealers and mints. 3. If you are going to take delivery, ensure you understand the cost of shipping and, importantly, insurance. Check with the gold bar dealer to find out the shipping costs and ensure that they provide insurance (which you will be expected to pay) this should be figured in the gold bar price. 4. Do due diligence on the gold bar dealer or person or company you are buying gold from. Who are they? Are they easily contacted? Are they accredited? Do you know friends or associates that have dealt with them before? 5. Lastly it is prudent to have a good understanding of gold and gold bars. How they are produced and in what form. The weights, fineness and all other aspects of gold bars. How much premium will you pay? Taking some time to understand your gold bar investment will pay off in that you can ensure you get as much gold for you money as possible and that you do not pay a heavy gold bar price while doing it!
Gold Bar Purities
All gold bars have a purity expressed in units per 100, 1000 or 10000. There is a universal trend now for bars to be 99.99%, however, there is still some variation in some countries. For example:
- Dubai - 99.9%
- Iran - 99.5%
- Hong Kong - 99%
- Thailand - 96.5%
A new product, called ChipGold, has also entered the market. This is a relatively new form of gold bar, consisting of a small ingot of one to twenty grams presented in a sealed and certified package, about the size of a credit card. Chip Gold is designed to be used as a liquid investment in gold and can be easily stored and transported. The typical weights available include, one through to twenty grams with a purity of .9999 fine gold.
The granddaddy of all gold bars is the larger 400 oz (12.5 kg) ‘London Good Delivery’ bars. These are held by central banks and used by banks, governments and large institutions to store value and to transfer value between banks, They almost always have a purity of 99.5 percent.
Collecting Gold Coins
Collecting gold coins can be a fascinating hobby as well as a fruitful one but it is very important to keep in mind several factors when collecting gold coins.Firstly one should have in mind what sort of gold coins one wants to collect. There are many and some can be quite pricey. How much do you want or can you afford to spend? If you are on a limited budget you can easily start with some of the smaller coins and build up a collection perhaps over a period of time. One can get one tenth and even one twentieth of an ounce gold coins these days and these are much easier to purchase than the traditional one ounce gold coins.
Next, you might like to collect coins of a particular country or a particular series such as Canadian Maples or South African Krugerrands. Some people like to collect Proof coins rather than used or uncirculated. These tend to be more expensive of course as they are coins that have been especially struck for collectors and are of a much higher quality than the brilliant uncirculated coins.
You will need to source a good reputable dealer from whom you can buy your gold coins. If possible try to buy your coins from the same dealer every time as then, if the time comes to sell some, the dealer will know the coins and generally offer you the best price for those you might sell. Dealers also like to hav
e repeat customers and will tend to look after them and sometimes even offer a higher quality service.
If you decide to buy rare or proof sets be aware these can be more expensive, but if you have the money they are generally well worth the cost as, over time, they will appreciate in value quite nicely.
In addition buying larger amounts of gold means that you pay less in mark up costs from the dealer or mint than if you just buy a small one tenth ounce coin. The shipping and packaging might even be as much as the cost of the coin for a small coin.
What ever you decide to buy, the main point is to study and learn as much as you can about collecting gold coins and probably even more importantly, have fun doing it.
Next, you might like to collect coins of a particular country or a particular series such as Canadian Maples or South African Krugerrands. Some people like to collect Proof coins rather than used or uncirculated. These tend to be more expensive of course as they are coins that have been especially struck for collectors and are of a much higher quality than the brilliant uncirculated coins.
You will need to source a good reputable dealer from whom you can buy your gold coins. If possible try to buy your coins from the same dealer every time as then, if the time comes to sell some, the dealer will know the coins and generally offer you the best price for those you might sell. Dealers also like to hav
e repeat customers and will tend to look after them and sometimes even offer a higher quality service.If you decide to buy rare or proof sets be aware these can be more expensive, but if you have the money they are generally well worth the cost as, over time, they will appreciate in value quite nicely.
In addition buying larger amounts of gold means that you pay less in mark up costs from the dealer or mint than if you just buy a small one tenth ounce coin. The shipping and packaging might even be as much as the cost of the coin for a small coin.
What ever you decide to buy, the main point is to study and learn as much as you can about collecting gold coins and probably even more importantly, have fun doing it.
Monday 8 September 2008
Silver
Silver is a chemical element with the symbol "Ag" (Latin: argentum, from the Ancient Greek: ἀργήντος - argēntos, gen. of ἀργήεις - argēeis, "white, shining" ) and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal. It occurs as a pure free metal (native silver) and alloyed with gold (electrum), as well as in various minerals, such as argentite and chlorargyrite. Most silver is produced as a by-product of copper, gold, lead, and zinc mining.
Silver has been known since ancient times and has long been valued as a precious metal, used to make ornaments, jewellery, high-value tableware and utensils (hence the term "silverware") and currency coins. Today, silver metal is used in electrical contacts and conductors, in mirrors and in catalysis of chemical reactions. Its compounds are used in photographic film and dilute solutions of silver nitrate and other silver compounds are used as disinfectants. Although the antimicrobial uses of silver have largely been supplanted by the use of antibiotics, further research into its clinical potential is in progress. Silver is a very ductile and malleable (slightly harder than gold) monovalent coinage metal with a brilliant white metallic luster that can take a high degree of polish. It has the highest electrical conductivity of all metals, even higher than copper, but its greater cost and tarnishability have prevented it from being widely used in place of copper for electrical purposes, though it was used in the electromagnets used for enriching uranium during World War II (mainly because of the wartime shortage of copper). Another notable exception is in high-end audio cables.
Among metals, pure silver has the highest thermal conductivity (only the non-metal diamond's is higher), the whitest color, and the highest optical reflectivity (although aluminium slightly outdoes it in parts of the visible spectrum, and it is a poor reflector of ultraviolet light). Silver also has the lowest contact resistance of any metal. Silver halides are photosensitive and are remarkable for their ability to record a latent image that can later be developed chemically. Silver is stable in pure air and water, but tarnishes when it is exposed to air or water containing ozone or hydrogen sulfide. The most common oxidation state of silver is +1 (for example, silver nitrate: AgNO3); in addition, +2 compounds (for example, silver(II) fluoride: AgF2) and +3 compounds (for example, potassium tetrafluoroargentate: K[AgF4]) are known.
Silver has been known since ancient times and has long been valued as a precious metal, used to make ornaments, jewellery, high-value tableware and utensils (hence the term "silverware") and currency coins. Today, silver metal is used in electrical contacts and conductors, in mirrors and in catalysis of chemical reactions. Its compounds are used in photographic film and dilute solutions of silver nitrate and other silver compounds are used as disinfectants. Although the antimicrobial uses of silver have largely been supplanted by the use of antibiotics, further research into its clinical potential is in progress. Silver is a very ductile and malleable (slightly harder than gold) monovalent coinage metal with a brilliant white metallic luster that can take a high degree of polish. It has the highest electrical conductivity of all metals, even higher than copper, but its greater cost and tarnishability have prevented it from being widely used in place of copper for electrical purposes, though it was used in the electromagnets used for enriching uranium during World War II (mainly because of the wartime shortage of copper). Another notable exception is in high-end audio cables.
Among metals, pure silver has the highest thermal conductivity (only the non-metal diamond's is higher), the whitest color, and the highest optical reflectivity (although aluminium slightly outdoes it in parts of the visible spectrum, and it is a poor reflector of ultraviolet light). Silver also has the lowest contact resistance of any metal. Silver halides are photosensitive and are remarkable for their ability to record a latent image that can later be developed chemically. Silver is stable in pure air and water, but tarnishes when it is exposed to air or water containing ozone or hydrogen sulfide. The most common oxidation state of silver is +1 (for example, silver nitrate: AgNO3); in addition, +2 compounds (for example, silver(II) fluoride: AgF2) and +3 compounds (for example, potassium tetrafluoroargentate: K[AgF4]) are known.
Gold Coin
Gold coins are one of the oldest forms of money. The first gold coins in history were coined by the Lydian king Croesus in about 560 BC, not long after the first silver coins were minted by king Pheidon of Argos in about 700 BC. The Ying Yuan was a gold coin minted by the Chinese in the 6th or 5th century BC.
Gold coins then had a very long period as a primary form of money, only falling into disuse in the early 20th century. Most of the world stopped making gold coins as currency by 1933, as countries switched from the Gold Standard due to hoarding during the worldwide economic crisis of the Great Depression. In the United States, this was following Executive Order 6102.
However, gold-coloured coins (not made of real gold) have made a comeback in many currencies. Furthermore, many countries continue to make legal tender gold coins, but these are primarily meant for collectors and investment purposes and are not meant for circulation.
Many factors determine the value of a gold coin, such as its rarity, age, condition and the number originally minted. Gold coins coveted by collectors include the Aureus, Solidus and Spur Ryal.
In July 2002, a very rare $20 1933 Double Eagle gold coin sold for a record $7,590,020 at Sotheby's, making it by far the most valuable coin ever sold to date. In early 1933, more than 445,000 Double Eagle coins had been struck by the U.S. Mint, but most of these were surrendered and melted down following Executive Order 6102. Only a few coins managed to survive.
In 2007 the Canadian Mint produced a 100 kg gold coin with a face value of $1,000,000, though the gold content was worth over $2 million at the time. It measures 50 cm in diameter and is 3 cm thick. It was intended as a one-off to promote a new line of Canadian Gold Maple Leaf coins, but after several interested buyers came forward the mint announced it would manufacture them as ordered and sell them for between $2.5 million and $3 million. As of May 3 2007 there were five confirmed orders. [1] Austria had previously produced a 37 cm diameter 31 kg gold coin with a face value of €100,000 ($153,000).
In October 4, 2007, David Albanese (president of Albanese Rare Coins) stated that a $10 - 1804-dated Eagle coin (made for President Andrew Jackson as a diplomatic gift) was sold to an anonymous private collector for $5 million.
While obsolete gold coins are primarily collected for their numismatic value, gold bullion coins today derive their value from the metal (gold) content - and as such are viewed by some investors as a "hedge" against inflation or a store of value. South Africa introduced the Krugerrand in 1967 to cater to this market; this was the reason for its convenient and memorable gold content—exactly one troy ounce. It was the first modern, low premium (i.e. priced only slightly above the bullion value of the gold) bullion gold coin. Bullion coins are also produced in fractions of an ounce - typically half ounce, quarter ounce, and one-tenth ounce. Bullion coins do not carry a meaningful face value, as their value is mainly dictated by their troy weight and the current market price of the precious metal. (If a face value is minted on the coin, it is done for legal or other reasons and it is nearly always significantly less than the actual value of the coin.) Gold has an international currency code of XAU under ISO 4217.
Gold bullion coins usually come in 1 oz, 1/2 oz, 1/4 oz, 1/10 and 1/20 oz. sizes. Most countries have one design that remains constant each year; others have variations each year, and in most cases each coin is dated. A 1/10th oz bullion coin is about the same size as a U.S. dime. A 1 oz. gold bullion coin is about the size of a U.S. half dollar.
For most of history, coins were valued based on the precious metal they contain. Whether or not a coin was actually made by the party that it is claimed to be made by was of secondary importance compared to whether or not it contains the correct amount of metal, that is, right weight and fineness (purity). Genuine appearance was simply a convenient shortcut to avoid time-consuming tests in everyday transactions.
Unlike silver, gold is denser than almost all other metals, whether something is made of gold is extremely hard to fake. Simple determination of weight and volume should be sufficent. A coin that is the right size but is not gold, or has too much base metal, will be "light"; alternately, a coin that weighs right will be somewhat larger. (Platinum was unknown in ancient times; platinum is denser than gold, but since it is about twice as expensive, making a fake coin out of platinum would make no sense. In theory, fake coins could be made of uranium, but this does not appear to be a practical problem.)
Of course, if a coin has mostly numismatic value, whether it is authentic is critical. A coin that is not genuine would (assuming it is made of gold) have the same "melt value" as a genuine coin, but this may be next to nothing, relatively speaking, for a rare coin.
There are well made counterfeit gold coins in circulation. For example, the Saint-Gaudens Double Eagle omega counterfeit is infamous for its complexity; and has fooled many numismatics experts. It is a high relief business strike, and due to the extensive wear on the die, these coins were not made for many years. For poor counterfeits, a good scale can usually tell if it's counterfeit or not; however, there are many well made counterfeited ancient coins that not only use gold, but the correct amount as well.
The US $20 gold coin ("double eagle") has raised lettering around its rim. If the coin is uncirculated, the letters will be flat on top. If slightly rounded, and the coin is uncirculated, it is a counterfeit. However, some counterfeits do not have this defect.
There are other counterfeit double eagles in which the gold and copper alloy was not thoroughly mixed. These counterfeits will have a slightly mottled appearance.
An old practice to test whether a gold coin was counterfeit was to bite down on it. Since pure gold is relatively soft any base metals mixed with the gold to lessen its value will also harden the coin, and so make it harder to bite on. The majority of bullion counterfeits (of all types) are rare, and fairly easy to detect when comparing their weights, colors and sizes to authentic pieces. This is because the cost of reproducing any given coin precisely can easily exceed the market value of the originals.
Gold coins then had a very long period as a primary form of money, only falling into disuse in the early 20th century. Most of the world stopped making gold coins as currency by 1933, as countries switched from the Gold Standard due to hoarding during the worldwide economic crisis of the Great Depression. In the United States, this was following Executive Order 6102.
However, gold-coloured coins (not made of real gold) have made a comeback in many currencies. Furthermore, many countries continue to make legal tender gold coins, but these are primarily meant for collectors and investment purposes and are not meant for circulation.
Many factors determine the value of a gold coin, such as its rarity, age, condition and the number originally minted. Gold coins coveted by collectors include the Aureus, Solidus and Spur Ryal.
In July 2002, a very rare $20 1933 Double Eagle gold coin sold for a record $7,590,020 at Sotheby's, making it by far the most valuable coin ever sold to date. In early 1933, more than 445,000 Double Eagle coins had been struck by the U.S. Mint, but most of these were surrendered and melted down following Executive Order 6102. Only a few coins managed to survive.
In 2007 the Canadian Mint produced a 100 kg gold coin with a face value of $1,000,000, though the gold content was worth over $2 million at the time. It measures 50 cm in diameter and is 3 cm thick. It was intended as a one-off to promote a new line of Canadian Gold Maple Leaf coins, but after several interested buyers came forward the mint announced it would manufacture them as ordered and sell them for between $2.5 million and $3 million. As of May 3 2007 there were five confirmed orders. [1] Austria had previously produced a 37 cm diameter 31 kg gold coin with a face value of €100,000 ($153,000).
In October 4, 2007, David Albanese (president of Albanese Rare Coins) stated that a $10 - 1804-dated Eagle coin (made for President Andrew Jackson as a diplomatic gift) was sold to an anonymous private collector for $5 million.
While obsolete gold coins are primarily collected for their numismatic value, gold bullion coins today derive their value from the metal (gold) content - and as such are viewed by some investors as a "hedge" against inflation or a store of value. South Africa introduced the Krugerrand in 1967 to cater to this market; this was the reason for its convenient and memorable gold content—exactly one troy ounce. It was the first modern, low premium (i.e. priced only slightly above the bullion value of the gold) bullion gold coin. Bullion coins are also produced in fractions of an ounce - typically half ounce, quarter ounce, and one-tenth ounce. Bullion coins do not carry a meaningful face value, as their value is mainly dictated by their troy weight and the current market price of the precious metal. (If a face value is minted on the coin, it is done for legal or other reasons and it is nearly always significantly less than the actual value of the coin.) Gold has an international currency code of XAU under ISO 4217.
Gold bullion coins usually come in 1 oz, 1/2 oz, 1/4 oz, 1/10 and 1/20 oz. sizes. Most countries have one design that remains constant each year; others have variations each year, and in most cases each coin is dated. A 1/10th oz bullion coin is about the same size as a U.S. dime. A 1 oz. gold bullion coin is about the size of a U.S. half dollar.
For most of history, coins were valued based on the precious metal they contain. Whether or not a coin was actually made by the party that it is claimed to be made by was of secondary importance compared to whether or not it contains the correct amount of metal, that is, right weight and fineness (purity). Genuine appearance was simply a convenient shortcut to avoid time-consuming tests in everyday transactions.
Unlike silver, gold is denser than almost all other metals, whether something is made of gold is extremely hard to fake. Simple determination of weight and volume should be sufficent. A coin that is the right size but is not gold, or has too much base metal, will be "light"; alternately, a coin that weighs right will be somewhat larger. (Platinum was unknown in ancient times; platinum is denser than gold, but since it is about twice as expensive, making a fake coin out of platinum would make no sense. In theory, fake coins could be made of uranium, but this does not appear to be a practical problem.)
Of course, if a coin has mostly numismatic value, whether it is authentic is critical. A coin that is not genuine would (assuming it is made of gold) have the same "melt value" as a genuine coin, but this may be next to nothing, relatively speaking, for a rare coin.
There are well made counterfeit gold coins in circulation. For example, the Saint-Gaudens Double Eagle omega counterfeit is infamous for its complexity; and has fooled many numismatics experts. It is a high relief business strike, and due to the extensive wear on the die, these coins were not made for many years. For poor counterfeits, a good scale can usually tell if it's counterfeit or not; however, there are many well made counterfeited ancient coins that not only use gold, but the correct amount as well.
The US $20 gold coin ("double eagle") has raised lettering around its rim. If the coin is uncirculated, the letters will be flat on top. If slightly rounded, and the coin is uncirculated, it is a counterfeit. However, some counterfeits do not have this defect.
There are other counterfeit double eagles in which the gold and copper alloy was not thoroughly mixed. These counterfeits will have a slightly mottled appearance.
An old practice to test whether a gold coin was counterfeit was to bite down on it. Since pure gold is relatively soft any base metals mixed with the gold to lessen its value will also harden the coin, and so make it harder to bite on. The majority of bullion counterfeits (of all types) are rare, and fairly easy to detect when comparing their weights, colors and sizes to authentic pieces. This is because the cost of reproducing any given coin precisely can easily exceed the market value of the originals.
Gold Bar
Gold bars are classified into two different types — cast and minted — based on their method of manufacturing. Cast bars are made by pouring molten gold into an ingot mold to help the gold to take a form. Minted bars are made from gold blanks that have been hand cut to the required dimensions from a flat piece of gold. Markings are almost always applied by presses. ChipGold is a relatively new form of gold bar consisting of a small ingot (1-20 grams) in a sealed and certified package the size of a credit card.
One troy ounce = 31.1034768 grams. Thus if gold were at US$850 per ounce, a gold gram would be worth just over US$27.
Note where gold is measured in ounces, these are troy ounces, not the much more common avoirdupois ounce which is used for measuring weights in food etc. An avoirdupois ounce is lighter than a troy ounce. One avoirdupois ounce = 28.349523125 grams.
One tonne = 1000 kilograms = 32,150.746 troy ounces (value US$24,360,620 as of Oct. 15, 2007).
One kilogram = 1000 grams = 32.15074656 troy ounces (value US$24,360.62 as of Oct. 15, 2007).
One tael = 50 grams (value US$1,218.03 as of Oct. 15, 2007).
This is the official rate of taels in mainland China since the country went metric. In Taiwan and Hong Kong today a tael is equivalent to 37.429g.
Gold is very dense (19.3 g/cm³), to the extent that ten million U.S. dollars' worth occupies less than one cubic foot.
One troy ounce = 31.1034768 grams. Thus if gold were at US$850 per ounce, a gold gram would be worth just over US$27.
Note where gold is measured in ounces, these are troy ounces, not the much more common avoirdupois ounce which is used for measuring weights in food etc. An avoirdupois ounce is lighter than a troy ounce. One avoirdupois ounce = 28.349523125 grams.
One tonne = 1000 kilograms = 32,150.746 troy ounces (value US$24,360,620 as of Oct. 15, 2007).
One kilogram = 1000 grams = 32.15074656 troy ounces (value US$24,360.62 as of Oct. 15, 2007).
One tael = 50 grams (value US$1,218.03 as of Oct. 15, 2007).
This is the official rate of taels in mainland China since the country went metric. In Taiwan and Hong Kong today a tael is equivalent to 37.429g.
Gold is very dense (19.3 g/cm³), to the extent that ten million U.S. dollars' worth occupies less than one cubic foot.
KITCO Precious Metal
Since 1977,Kitco has earned a reputation as one of the world’s premier retailers of precious metals.We offer a complete line of the highest quality bullion bars and coins for investors and refining services for the jewelry manufacturing industry, as well as mill products.Our customers rely on Kitco for superior service and the highest quality products at competitive prices.Kitco serves the needs of both small and large investors, as well as the precious metals industry.To serve our customer even better, our services are available 24 hours a day, seven days a week on the Internet.
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