gold by rcdohare

8/14/2019 Gold by Rcdohare

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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

holding400 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


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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




Gold coated measures

Many gold-coated articles are also used as substitutes for solid karat gold. Thethickness of the coatings are often expressed in millionths of an inch, ormicroinches, and the table below provides a way to translate between these andother measurement units.

1 millionth inch (microinch) = 0.0254 micron1 thousanth inch (mil) = 25.4 microns1 millionth meter (micron) = 39.37 microinches1 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.


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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


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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 archaeologicalevidence to pinpoint the time and place of man's first happy encounter with theyellow metal, we can only conjecture about those persons, who at various placesand at different times first came upon native gold. Experts of fossil study haveobserved that bits of natural gold were found in Spanish caves used by thePaleolithic Man about 40,000 B.C. Consequently, it is not surprising that historicalsources cannot agree on the precise date that gold was first used. One statesthat gold's recorded discovery occurred circa 6000 B.C. Another mentions thatthe pharaohs and temple priests used the relic metal for adornment in ancientEgypt circa 3000 B.C. However, it is curious to note that the early Egyptian'smedium of exchange was not gold but barley. The first use of gold as money in700 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 andicons and also for jewelry to adorn their bodies. Intricately sculptured art objectsand adornment jewelry have been uncovered in the Sumerian royal Tombs insouthern Iraq and the tombs of Egyptian kings. Significant buildings and religioustemples and statues have been covered with thinly beaten sheets of gold. Due toits rarity, gold has long been considered a symbol of the wealth and power of itspossessor.


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In 2001, it was estimated that 2870 tons of gold were produced worldwide. About80 percent of that gold production was used to make jewelry, the majority ofwhich was sold in India, Europe and the United States of America. Gold jewelry isuniversally popular, loved for its lustrous yellow color and untarnishing character.

In many Asian countries, such as India, Thailand, and China, gold is important toreligious ceremonies and social occasions, such as the Chinese New Year andHindu marriages in India.Tons of gold was used in the decoration of famous golden temple of AmritsharIndia. Also In southern city of used gold for the decoration of LardTemple in

History of gold prices (in rupees):

1930: 18 per 10 gram

1940: 36 per 10 gram

1950: 100 per 10 gram

1960: 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 gram2009: 15,700 per 10 gram.

GOLD COINS


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US $160 Million Gold TempleInaugurated 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 goldand 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.


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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 ArjanDev (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 theirforefathers. Gautama Buddha is also believed to have visited this site. Today, however, it

is the holiest site for the Sikhs.


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