obama protect national grid

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Gold is forever

Gold is forever. It is beautiful, useful, and never wears out. It has been prized over all else, as a store of value that will survive the travails of life and the ravages of time. Every individual, although he may not need the gold, is a potential gold buyer. The yellow metal is being added as wealth, and passed from generation to generation as an object of family treasure. Moreover, gold jewellery is deeply connected with the culture, traditions and religions of India. Traditionally, Indian households see gold jewellery as an investment in their wealth and for their daughters it’s the future fortune. To have this precious metal, is every woman's dream. For an Indian woman, the more jewellery she wears, the more beautiful and complete she feels. But as the gold prices are soaring, the desire of the common man to possess it perhaps needs to be postponed for some time.

Gold has witnessed to a nonstop historic rally. The price of gold hit a 25-year high touching USD 637.30 an ounce this week. The reason mostly is the huge amount of investment being made into precious metals. According to PTI, standard gold (99.5 purity) shot up by Rs 50 per 10 gram higher at Rs 9,345 from Rs 9295 of yesterday (27/04/2006) while pure gold (99.9 purity) also jumped up by similar margin and closed at Rs 9390 per 10 grams against the previous day close of Rs 9340. At the same time, the price of gold in the international market rose by USD 3.68 per ounce and shot up at $637.30 as investors took gold as the safe haven during the time of rampant inflation and global disturbances of many a kinds- political and apolitical. Perhaps, now gold has been golden. Gold is chosen as the best alternative option to invest into by the investors who are worried and quite apprehensive over current market situations. Mostly the fear of raging Inflation, then international conflicts like Iran nuclear row, Venezuela’s challenges to the US, Nigerian violence etc. are some major factors that raise insecurity among the investors. They fear that their other monetary assets will lose value in this process. It is well expected that the gold price will soar when the world economic state is going through such a hard situation.

There are several explanations being pointed out by commodity experts for this bullion rally. The economic rise of China and India is one of the major factors that drive the global inflation to rise incessantly. Another reason is the growing demand of gold in both India and China, which are the big purchasers of gold jewellery. India is the largest gold jewellery consuming country in the world, followed by China and the Middle East. Gold Jewellery consumption in India and China is set to have an impact on the gold price. This will, in turn, cause the price of gold jewellery to rise. According to Star Newspaper in Malaysia, "the climb in the global gold price is driven by strong jewellery sales from the burgeoning middle class in China and India.” .There are some political reasons too, to accelerate the commodity price hike including gold. The nuclear conflict with Iran is another biggest cause that drives the Inflation to be rampant. Few days before, United Nations Security Council set deadline for Iran, the fourth-largest oil producer to suspend the nuclear programme, which has raised concerns worldwide speculating UN sanctions against Iran or a possible military assault against the country. The prolonged violence in Nigeria and the recent Zimbabwean government's announcement that it might take control of foreign-owned mines etc are the other political reasons that creates uncertainty in the state of world economy.

Other experts believe that investors being influenced by the rising price of commodity are doing massive speculative buying, which in turn has driven up the global gold price. They believe that, there are vast walls of money going into all the commodities, and gold and silver are benefiting at present. They justify their explanation by saying that, as the price has risen, it has become easier for investors to buy gold through a slate of new exchange traded and mutual funds that specialize in metals.

The World Gold Council, a trade group for mining companies, estimates that in 2005, the demand for gold as an investment has increased by only 26 per cent and exchange traded funds have increased the buying of metal ( in tonnage) 53 per cent more. And demand for gold used in jewelry, however, increased 5 percent. And it is expected the gold price will touch $800 by the year-end.

There is a demand of 800 tonnes of gold per annum in India for creation of gold jewellery. Of these 800 tonnes, two-thirds is imported. The demand for gold jewellery is growing gradually as the middle class in India continues to grow. According to The Mumbai Mirror, the Demand for gold jewellery, mainly from retail investors, was up 47 per cent in the second quarter of 2005 against the corresponding period of the previous year.

The Wedding Season in India is the main time for gold jewellery buying owing to its importance in the Hindu marriages. Daughters are gifted gold by their parents as a security for their financial future. Throughout India, gold has traditionally accompanied women into their marriages, as it secures their financial status in the in-laws’ family. With marriage season round the corner, the steep hike in gold price has come as big set back for all those gearing up for gold purchases. Though the jewellery manufacturers expect sales to pick up during the marriage season that lasts till June as it is the season when heavy traditional jewellery is bought more in comparison to the light weight and subtle-looking pieces, the steep hike is bound to impact sales. It is likely to keep casual buyers and middle class customers away from jewellery shops for some time.

The increase in the Gold Price is already having an effect on the festival and wedding season in India. Rather than buying new gold jewellery, many people are now choosing to recycle their gold jewelry into new designs for the festival season. According to the World Gold Council, "Recycled gold now accounts for 30 per cent of gold consumption in India". It is also expected that the high gold price will have an effect on the April 30th festival- Akshaya Tritiya in India. It is traditionally a time when Hindus buy gold as they believe valuables bought on that day will bring prosperity.

To lure the customers, many banks in India have loans for purchasing gold jewelry. These loans are generally targeted at the workingwoman between 18 and 55 years of age. That banks are willing to loan on gold jewelry is a reflection of the importance of gold jewelry in an Indian woman's economy and traditions. And for the banks, it is a profitable business during the periods of price hike.

Thanks to some innovative trends in investment, gold-the eternal and largely immobile store of value is now soaring. As gold couldn’t easily be destroyed and difficult to move vast quantities of it, it is just incredibly valuable. At least for now, gold is the place for some of the fastest-moving cash in the world. The experts believe that the trend will continue for quite a long time to come. And soaring price makes the yellow metal to shine more and more. Whatever. Now, the precious metal has become uncommon thing for the common man.

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collecting gold

A lot of people find collecting gold coins as not only an incredibly interesting hobby but a fairly lucrative one as well! Over time, your collection will accure value and parts of it can be sold if you desire. This way, you will have additional income for yourself later in life in addition to a fantastic collection of valuable coins.

1. Face To Face: Coin Collectors Know Best

The internet is home to a lot of gold coin dealers wherein you can meet all sorts of people from all over the world who are into both buying and selling gold coins. Of course, it is a rather convenient venue for you to be able to do your transactions. You must be extremely conscious, however, when it comes to dealing with other gold coin collectors that you will meet through the internet. While there are some real gold coin enthusiasts in the internet, there are also those people who are posing as gold coin collectors and are just looking to rip you off.

2. Why Gold Coins?

The history of gold coins dates as far back as 2,700 years ago. The first gold coins in the world were issued in Lydia around 640 B.C. certain internet websites will provide you with a lot of information about the history of gold coins.

As money, gold coins have been a convenient way for people to do their transactions. Gold was only used for coins that were considered of a higher value. As gold is not the most common ore, it became impractical for gold to be used in the common coin systems of all major countries. This means a collection of gold coins is extremely rare due to the fact that gold coins are no longer being produced.

3. Gold Coins For Investment

- Gold is sensible investment: all major countries use reserves of gold (such as Fort Knox) to maintain their national worth

- A highly convenient investment

- Physical gold is extremely stable in value

4. Commemorative Coins

When it comes to the commemorative gold coins, since gold is deemed as a highly valuable kind of metal, it is an obvious choice when it comes to making or producing special commemorative coins. In the past, there are sets of gold coins that were just issued to mark coronations as well as other important state events. A lot of financial reserves that are being held by banks are in the form of gold coins. Gold coins are a desired form of a reserved asset since gold coins are not really used for circulation anymore.

5. About Collectors

There are a lot of various gold coin sellers, buyers as well as collectors who are waiting to bid on the best kind of gold coins in the market most especially in the internet. For most gold coins that can be bought as well as sold at prices that are closely related to their intrinsic gold content. The most popular bullion gold coins are the krugerrands as well as the sovereigns.

For most gold coin collectors, there are the highly coveted rare gold coins and a lot of gold coin collectors are interested in these rare gold coins that they will offer high bids just to be able to get their hands on these.

A lot of people who are looking for things to collect are in real treat if ever they try out collecting gold coins most especially because gold coins can be bought in highly excellent and may be in even mint condition for only a relatively low premium over the gold coin's gold content. Also, since the coin is made from gold, it is highly unlikely that it will tarnish or even discolor.

If you are looking into collecting gold coins, first research the various gold coins that are available in the market today. Find out how much they are really worth due to their gold content, and then factor in any additional value to the coin for being rare. Always be on the lookout for fake coins, and have coins appraised by a gold coin expert to avoid large differences in price.

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Gold Maple Leafs and Silver Maple Leafs

Gold Maple Leafs and Silver Maple Leafs are receiving packaging makeovers, changes clearly mandated by investor disfavor with packaging that the Royal Canadian Mint has used since the coins were introduced. Gold Maple Leafs debuted in 1979, Silver Maple Leafs in 1988. The changes appear to be good moves, which should increase sales of Silver Maple Leafs and help keep Gold Maple Leafs the preferred pure (.9999 fine) gold bullion coins.

Since inception, 1-oz Gold Maple Leafs have been packaged ten to a tube. Because Maple Leafs are 24-karat, pure gold, they are "soft," relative to alloyed gold coins, such as American Gold Eagles and Krugerrands. Further, because of the design of the coins and the tight-fitting tubes, it is difficult to remove, inspect, and reinsert 1-oz Gold Maple Leafs in their tubes without scratching the coins.

Actually, reinserting Gold Maple Leafs without at least some scratching is nearly impossible. Further, if the persons inspecting the coins do not know how easily the Gold Maple Leafs are damaged, needless damage often occurs while the coins are out their tubes.

Gold Maple Leafs carry the image of Queen Elizabeth II on the front, with a flat, clear field alongside the image. The backs have the outline of a maple leaf, hence the coins' names. The problem arises from the coins' really sharp milled (reeded) edges. When the coins are reinserted in their tubes, the milled edges often scratch the fields.

Then there is the problem with investors who like to "heft" their coins "to get a feel of them." If they put four or five Gold Maple Leafs in the palms of their hands and "clang" them, the damage can be quite severe. Should a Gold Maple Leaf be dropped, rim damage is almost guaranteed.

As Gold Maple Leafs have been sold into the secondary market, damaged coins have become such a problem that Gold Maple Leafs have lost popularity with investors. The problem has become so widespread that many wholesalers bid only "melt" for Gold Maple Leafs, regardless of their condition. By paying only "melt," wholesalers can profitably resell the coins for industrial or jewelry purposes if no buyers are found for the coins.

Gold Maple Leafs, like the Gold Eagles and the Krugerrands, are bullion coins, which trade for the value of their gold content, plus small premiums. Damaged Gold Maple Leafs do not mean a loss of gold; they contain an ounce of gold regardless of the scratching or rim nicks. Still, buyers do not like to receive damaged coins. This means that Gold Maple Leafs sold into the secondary market have to be evaluated for the degree of damage.

Some wholesalers refuse to take the time to individually inspect Gold Maple Leafs and separate them according to their condition. These are the wholesalers who generally will pay only "melt" for 1-oz Gold Maple Leafs, regardless of condition. Fortunately, the free market being what it is, there are still some wholesalers who will buy according to condition.

Yet the handwriting is on the wall: 1-oz Gold Maple Leafs in tubes will continue to lose popularity and probably will join Krugerrands, Mexican 50 Pesos, and Austrian 100 Coronas as basic bullion coins, which carry the smallest premiums in the bullion coin market. Still, the packaging makeover should fillip sales of new Gold Maple Leafs.

With the new packaging, each 1-oz Gold Maple Leaf will be encapsulated in plastic and suspended in the middle of a plastic card, somewhat as 1-oz gold bars are packaged. However, the plastic protecting the Gold Maple Leafs will be heavier and more durable than the plastic used with 1-oz gold bars. The new packaging should keep the coins from being easily damaged.

With the new packaging, the Royal Canadian Mint made another big change: 1-oz Gold Maple Leafs will now come 25 to a box, whereas the old packaging is ten to a tube. This change could further increase sales as 20 coins are common ordering units for gold bullion coins, because the world's most popular gold bullion coins--American Gold Eagles--come 20 to a tube. As a result of the change, investors wanting "complete original packaging" will move up to 25 ounces.

However, orders for small quantities mean the coins will have to be removed from their mint boxes--but still individually encapsulated--and put in other containers. The new packaging also will require more storage space for Gold Maple Leafs than for 1-oz gold coins that come in tubes.

Although 1-oz Gold Maple Leafs will be a little more cumbersome to handle, a large segment of the gold coin bullion market prefers pure gold coins. Gold Maple Leafs have long been the most popular 1-oz pure (.9999 fine or 24-karat) gold bullion coins on the market, and the new packaging should keep Gold Maple Leafs as the preferred 24-karat gold bullion coins. (The market for pure gold bullion coins is estimated to $2.4 billion annually.) The new packaging is expected to debut sometime in August.

New packaging for 1-oz Silver Maple Leafs has already been introduced. However, Silver Maple Leafs in their old packaging are still available. Since Silver Maple Leafs were introduced in 1988, they have been packaged twenty coins to a sheet, 200 coins in a box. Each coin was individually enclosed in plastic. The new packaging will be similar to the U.S. Mint's Silver Eagles packaging.

Silver Maple Leafs will now come 20 to a tube, 25 tubes to a container, and 500 coins to a "mint box." The new box will be made of durable heavy plastic, whereas the boxes of 200 are cardboard. The new packaging should make Silver Maple Leafs more competitive with American Silver Eagles, presently the most popular 1-oz modern silver bullion coins being sold.

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About Buying Quality Jewelry Online

Everything You Need to Know About Buying Quality Jewelry Online

Gold, platinum and titanium are among the most coveted precious metals in the world. Jewelry crafted out of these pure substances is often highly valued and sought out by savvy consumers the world over. Learn everything you need to know about selecting quality pieces right here!

Gold Jewelry

Gold jewelry is perhaps the most traditional form of quality jewelry worn by men and women alike in every culture and society of the world. Gold has been used to fashion attractive pieces for centuries. Many historians believe that gold was used as far back as pre-historic times by man as a tool. Later gold jewelry was first discovered dating to around 3000 BC. Gold first became widely used by the Egyptians, who combined gold with other precious metals to achieve varying looks, colors and durability.

So what do you need to know about buying gold? Let's start with the basics. Most gold is assessed via its weight or karats.

14k Gold - 14k gold jewelry is made up of 58.5% gold mixed with copper and nickel among other things. It is the most popular karat of gold purchased the world over, and is known for its affordability and durability.

18k Gold - 18k gold jewelry is popular particularly in Europe. Most 18k gold jewelry is made from 75% pure gold. Most premium jewelry is made with 18 k, which is only slightly more expensive than 14 k gold.

22-24k Gold - 22 and 24 karat gold jewelry is usually considered the most valuable, and is very popular among elite gold shoppers. This form of gold is the most pure, consisting of almost 199% gold. Generally 22 and 24 karat gold products have a richer color than other gold jewelry.

Is one better than the other? The more pure the gold, the softer the jewelry will be and the more likely to scratch. Fine scratches are easily minimized however with proper care and cleaning over time. Quality is more related to craftsmanship than the actual percentage of gold in a particular piece of jewelry. When deciding on a piece that's right for you - you'll want to look for things like symmetry, overall appearance and finishing.

One of the best things about gold jewelry is it is available in both yellow and white. White gold is becoming increasingly popular though it is only available in 14 or 18 k styles. White gold jewelry is often plated with a platinum metal to help give its unique color.

Black Hills Gold

Black Hills gold is extremely popular among gold enthusiasts. Black Hills Gold is named not only after the style but also location the gold jewelry is fashioned in. Legend has it that a French goldsmith became lost during the gold rush of the mid 1870s in the Black Hills of South Dakota. During a dream, he believed he had seen a mountain stream with grape vines; upon awakening, he walked over to find the very scene he dreamed about, and in gratitude decided to devote his life to creating gold jewelry in the shape of grape leaves and clusters fashioned out of gold.

Black Hills Gold jewelry is a particular style of jewelry that must be manufactured in the Black Hills of South Dakota. This gold jewelry is often combined with silver and copper to create green and rose leaved color combinations. Most Black Hills Gold is available in 10, 12 and 14k versions. This makes Black Hills gold extremely popular among jewelry fans looking for attractive yet very affordable gold jewelry.

Platinum & Titanium Jewelry

Platinum and titanium jewelry are among the most expensive jewelry items, in part because they are crafted of white metals. Platinum jewelry is often very heavy and dense as is most titanium jewelry. Platinum jewelry is much heavier than gold jewelry because of the density of the metal used to craft it. Titanium is actually really light. It's only 60% heavier than aluminum and 45% lighter than steel! Platinum jewelry and titanium jewelry are also naturally white or silver, thus do not have to be combined with other metals to achieve a brilliant whitish sheen.

Most platinum jewelry is 90% pure or more, thus platinum jewelry is an exceptional selection for consumers who are allergic or who have sensitive skin. Gold jewelry might cause allergic reactions in people in part because it is mixed with other substances such as nickel, which can be irritating for some people.

Platinum and titanium jewelry usually will hold up well over time and require little maintenance, other than regular cleanings using a mild soap or cleaning agent. Titanium jewelry is in fact considered one of the most durable jewelry selections available, showing few if any signs of wear and tear over the years.

Both platinum and titanium jewelry can be fashioned with gold or silver inlays or adorned with stones. Platinum jewelry is often a popular choice for wedding and engagement bands. Titanium jewelry is slowly becoming more popular as its appeal and durability is more widely known. You can find platinum jewelry and titanium jewelry that is affordable. Most unadorned bands generally can range anywhere from $60 on up. Remember that in general, intricate and ornate platinum or titanium pieces are more expensive than their gold counterparts, and it isn't uncommon to see pieces that cost up to several thousand dollars.

You can find virtually any type of jewelry in platinum and titanium that you can in gold. Most people select one or the other based on style or budgetary considerations. Gold can actually be combined with platinum or titanium to produce unique custom pieces. The most popular platinum and titanium pieces remain rings for the most part; gold jewelry is still the reigning king and favorite it seems among jewelry wearers looking for a combination of rings, earrings, bracelets and necklaces. That may change with time however, as more and more consumers realize the appeal and durability of other precious metals including platinum and titanium.

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The Fallacy of Gold and Primacy of Silver


The decade long flight of wealth from fiat currencies and naked stocks, to gold, as a safe haven to guard against economic chaos and worldwide depression, is a curious aberration of market speculation. Considering the vast amount of information available to those wealthy enough to be able to own gold, and the history of gold and silver as money to be used for purchasing consumables; one wonders why companies, banks, and persons of wealth, along with their financial advisors, are so poorly informed about the impracticality of owning gold as a potential emergency money for individuals and businesses; especially considering the current very distorted relative value of gold to silver.

Since I am more than sixty years of age I can reminisce that I grew up with silver money in my pocket, though I do not ever recall even seeing any gold money; and my parents, grandparents, and great grandparents all had silver money in their pockets, nor did they ever speak of having or using gold as money.

While silver was domestic money for more than 100-years here in the U.S., both as coin and currency backed by silver; and was used by consumers to purchase their food, clothes, and shelter. Gold, on the other hand, has been used by governments, banks, and international businesses during the past century to settle international trade accounts, and not as domestic money. Both gold and silver ceased to be used as money by banks and government by 1971. So buying gold to hold for an eventual use as domestic money to purchase consumables is incredibly silly, if not outright stupid.

Gold and silver have been mined, in the most recent century, at a ratio of about 10-ounces of silver for each 1-ounce of gold. In a hard currency economy where both metals would only be used as money and all production would be sold to governments to coin stable money, the relative price would be 10-to-1; that is, each ounce of gold would exchange for 10-ounces of silver. Yet the commodity markets have at this time (Nov. 2011) continually traded these metals in a range that is approximately 1-ounce of gold for 50-ounces of silver. In the past 20 years it has been as high as 1-ounce of gold for 100-ounces of silver; and as low as 1-to-30.

It is important for people purchasing gold and silver to question why this market is so skewed. First off, gold and silver are not used as money in the U.S. economy; nor does our government purchase or sell any significant amount of these metals annually, except in the production of non-monetary bullion coins. Consider that more than 50% of all gold mined annually is stored in bars or stamped into investment coins by several countries; while another large portion goes into jewelry and is relatively easily recoverable back to bullion. The world has accumulated more than 4.3 billion ounces of gold and the stock pile is growing around 75-million ounces per year. Silver is a very different story; for the past generation, more silver is consumed annually by industry than is mined.

Even though mining has increased the annual production of silver more than 50% in thirty years, worldwide industrial demand has increased even more; such that the above ground stocks of silver in the 1970's was around 24 billion ounces and has declined to between 18 and 19 billion ounces today; a large portion of which is not easily recoverable to bullion. Even if all the silver tied up in film, electronics, plumbing, military hardware, silverware, medical bandages, industrial catalysts, jewelry, anti-microbial clothes, etc., was available to serve as doomsday money there is still less than 5-ounces of silver available to each ounce of gold to serve as money. So 5-to-1 in quantity supports and affirms the current 50-to-1 price difference, right?

Actually, there is a lot of missing information about gold and silver. Because the market is always right, the 50-to-1 ratio has to be correct at this time, in this economy; the law of supply and demand can be manipulated, but it cannot be broken. Gold production is constrained such that a great deal of the above ground gold is mined and stored in a cave to cave sequestration by governments, banks, precious metal investment companies, and ETFs; all hoarding a lot of gold and some silver. In essence little new gold, relative to hoarded stockpiles, is available to be owned by individuals as bullion, while essentially all silver, both mine production and stockpiles is for sale to the highest bidder for industrial consumption. Gold is artificially high in price relative to its quantity above ground because of hoarding; which is done to promote a high price and facilitate price control. The markets in gold and silver are not free markets; supply and price are manipulated to benefit governments, banks, and industries. A great deal of newly mined silver is sold by miners at very low prices to benefit industry, presumably to gain help from the financial markets in having the gold market managed in such a way that prices are kept very high to benefit miners; and to give a false wealth effect to governments and banks that sequester gold. Considering that most of these large mining companies are publicly owned; the dumping of silver at prices as low as 10% of the spot price seems to disparage their stockholders unless there is a price benefit to their gold production side of the precious metal market.

The cave-to-cave aspect of gold comes from the vast system of caves made by miners to remove gold ore; refine a fraction of that ore into gold bars; which are to a large extent bought by governments, banks, and ETFs and immediately put back into concrete caves with thick steel doors, to keep it locked away as a hoard, and not likely to ever be used as money by citizens to purchase consumables. So if the 50-to-1 price ratio reflects the available amount of silver to gold, and if there are 18-billion ounces of silver that could be made available for exchange and consumption by markets, then there are only 360-million ounces of gold available for exchange and consumption by the markets. At least that is the quantity relationship supported by the lack of information to the users, holders, and investors of gold and silver. But this quantity relationship is false, since banks and governments have sequestered a little over 2-billion ounces of gold (about half of the mined gold), leaving 2-billion ounces or so to be held by individuals, businesses, and ETFs; and since several billion ounces of silver are sequestered in film, electronics, etc.; the amount of silver available to individuals as bullion is about 4-billion ounces; giving us a ratio of tradable bullion of 2-ounces of silver to 1-ounce of gold in the possession of private citizens, (this includes jewelry and bullion that could act as money). If silver is correctly priced at about $35.00 per ounce then gold should only command a price of two times greater or $70.00 per ounce; based simply on a supply foundation for price. Since the current price ratio is 50-to-1 this should lead us to suspect that the market is skewed by ignorance, misinformation, and probably disinformation through market management; which has created a speculative market in gold, in place of an investment market, which can only correct itself downward as individuals become more knowledgeable about the bullion supply and the more effective monetary use of silver versus gold.

There are some aspects of investing in gold that make it undesirable to own, should there be an economic meltdown. The first is that governments have the power to force those who possess gold to sell it to government at a price set by government. This was done in the U.S. by President Roosevelt in 1933, when private ownership of most gold became illegal; until President Nixon overturned this law in 1971. The price paid to those turning over their gold was $20.67 per ounce; while the following year, in 1934, President Roosevelt devalued the dollar 41% by declaring that the U.S. would exchange gold internationally at $35.00 per ounce. Why would anyone want to own gold when government can confiscate it and cheat the owner while doing so? Granted silver could also be confiscated by government, but because it is highly effective as domestic money and has many industrial uses, government would cause economic harm to itself by interfering in the use of silver as money in our economy.

An even worse problem for those who speculate in gold ETFs, ETCs, or purchase gold that is stored and managed by investment companies, is that they will never gain possession of the gold they have invested in; and therefore will not have any of the economic protection they were seeking when they bought into these investment scams. A full meltdown of the world economies could occur in a matter of days or at most a few weeks; and along with such a meltdown all forms of secure distribution of goods will fail; making it impossible to ship items such as gold and silver from any form of investment depository to individuals and businesses. Not to mention that in an economic meltdown all depositories of precious metals (which include all forms of precious metals investment companies) will be raided; and their gold and silver will be confiscated by governments in the political interests of those in power at the time.

There is a relatively new way to speculate in commodities like gold and silver called Exchange Traded Funds (ETFs). A precious metal ETF is run be a trustee organization that buys and sells a commodity like gold and also sells paper certificates that act like stock in that ETF. The trustee hires a bank to be the custodian of its gold; to store it and to receive additional gold when the trustee buys, or deliver gold to a buyer when the trustee sells. You as an investor (actually you are a speculator in paper, not an investor in gold) can trade your paper ETF stock with other speculators, who as a group must pay all of the overhead and profit of the trustee organization, such as wages, rent, shipping, storage, insurance and brokers fees. It is impossible to find a chair in this game when the music stops, because the custodian banker is the only one with a chair and he is not playing the game; the banker already has the gold; you hope!

I recently had a good laugh at the expense of a popular television business program when one of their reporters was doing a series on gold, wherein he was in London and was allowed to view gold that he reported was owned by a very large Exchange Traded Fund (ETF). He viewed this gold only after surrendering all electronic devices that could pinpoint his location and after being driven around London in a blacked-out van to ensure he had no idea of his location. For some reason he felt privileged to take part is this charade, without his understanding that an ETF is an investing charade by design. If you do not know where your investment is, or its condition without an audit for quantity and quality, it might as well still be disbursed in the crust of the earth.

What proof can this reporter provide that the gold he saw belonged to that ETF? How often is that gold randomly assayed to prove that it is gold? What assurance can the ETF provide that any gold they possess will not be confiscated by the British government, or any government of any country that allows ETFs to store precious metals in their banks? What prevents the custodian of gold or silver from selling the metals to cover short positions or raise cash by selling metals to profit from price spikes, when they, as banks, speculate in the precious metal markets, without informing the trustee of the ETF?

If ETF funds are good investments, with their hidden gold and only ownership of paper stocks in the ETF, why not create an ETF on gold that is hidden in the earth and cannot be mined. It is estimated that we have mined roughly 5% of the gold in the earth and that future mining will extract a further 5%, leaving 90% of the gold in the earth to form the basis for our ETF. All sales and purchases of our stock will be through our broker at current spot prices. Since 5% represents over 4-billion ounces of gold, our earth ETF would be roughly 90-billion ounces of gold; and we know exactly where all of it is; we also know that it is secure and cannot be stolen or confiscated by government. If our fund needs to sell gold we can sell ownership of gold in cubic kilometers of the earth's crust and buy those ownership rights back, when our fund has better cash flow from higher gold prices that will bring in more investors. We will sell stock in our ETF for a premium (broker's fee) over and above our gold's value and live off that premium while speculators try to out speculate each other trading our ETF stock through our broker. Since cows need to be milked and investors need to be bilked; not only can we form one ETF in this manner, we can form hundreds using the same gold; the gold is irrelevant, because ETFs are all about paper. Outside of ETFs concentrating commodities that make it easier for governments to confiscate those commodities, there is nothing special about them; they are just a newer game in the gambling casino known as Wall Street; and in every ETF you are speculating in paper and only paper.

Then there are companies that will sell you gold and silver and offer to store it and insure you against its being lost or stolen for an annual storage fee and insurance fee. So when the economy goes into inflationary meltdown and you want to take possession, you will first need to have some sort of distribution network that is still operating and is trustworthy to bring your gold to you; then you will need to be sure that the company storing your gold has not repeatedly sold and resold your gold and stored it for many other investors that may also want delivery of "their gold", causing that company to simply send everyone a cash refund, if that. If you do not have it in your land you cannot sell it or spend it to support life and limb.

Consider the possible scenario occurring about mid-September 2013, the limited wheat and corn harvest is coming in, controlled by government after social declension brought on by political corruption and greed, and the self-fulfilling prophecies of December 21, 2012, cause an economic meltdown in the winter of 2012-2013. Anyway, by September 2013 there are long lines in the cities to purchase the meager amount of goods available. Government is by Marshal Law and standing in bread lines is the priority activity for most people. On one side of the street there is a very long line of people waiting to receive two slices of bread every other day from a government storehouse, provided they have the proper government identification; while on the other side of that street a line forms outside a bakery that is allowed to bake and sell their own surplus bread over and above what they bake for the government dole. The bakery sells on a black market that the government tolerates to avoid social unrest, but which the banks will be jealous about, because it shuts them out of these transactions.

The bakery sets a limit of two loaves per person per week at a profiteering price of one ounce silver per loaf; and a sign that says we do not make change; of course the baker will barter for other items of value, but he will not accept Federal Reserve Notes, because their value will be declining daily and they cannot be trusted to replenish the baker's flour, sugar, and shortening. In the line outside the bakery are a number of people with questionable assets that they hope they can trade for bread. Obviously the person with two 1-ounce silver pieces will get two loaves of bread and the person with six half-dollar coins (minted pre-1965) containing 2.16-ounces of silver will get two loaves of bread. What about the person that presents the baker a 1-ounce American gold eagle coin; what will they get? They will receive two loaves of bread for their 1-ounce of gold, provided that gold is exchanging for two or more ounces of silver; and they will receive no change. While the person with the nice ETF certificates, showing a picture of gold on each certificate, will presumably be able to exchange them for a piece of paper with a picture of a loaf of bread on it. Similarly for the person that owns gold stored by an investment company; the baker informs them that when they have gold or silver in their possession he will do business with them.

How will gold and silver compare in an economic meltdown? Well if gold is not confiscated by governments worldwide; and hoarded gold is not sold to businesses and individuals by governments and big banks, there would be about 1-billion ounces of gold in tradable bullion coins and bars and about 1-billion ounces of gold in the form of jewelry, that to some extent would serve as money if the gold content of any piece of jewelry can be estimated. Similarly for silver, there are about 4-billion ounces of silver in the form of coins and bullion worldwide and perhaps a billion ounces of sterling silver in the form of jewelry and silverware that could serve as tradable money. Leaving us a ratio of 2-ounces of gold to 5-ounces of silver, held by individuals, to serve as stable money worldwide.

These figures are actually declining right now in Europe and the U.S., because several companies are canvassing owners of gold and silver coins, bullion, and jewelry to sell it for cash; and as this recession continues, more and more gold and silver is disappearing into increasing industrial consumption and large depositories such as governments, banks, and ETF funds. Here in Eugene Oregon we have had more than 100 full page ads in the local newspaper in the past year, offering to purchase gold and silver in any form; not to mention the almost continuous television ads that have occurred over several months in the past year, soliciting viewers to sell unwanted gold jewelry for cash. This is causing a significant decline in the amount of gold and silver still available to individuals to be used as money in future economic duress; while this recycled gold is mostly sequestered to maintain the high price of gold, this recycled silver is sold mostly to industry, and resulting in depressed silver prices until it is consumed.

It is important to note that the ratio of gold to silver that is held by individuals is somewhere between 1-to 1 and 1-to-2.5 ounces of gold to ounces of silver. So the barter value (money value) of these metals in a failed economy will be parity or near parity; making an investment in gold for the purpose of personal economic preservation a very unwise act. It is silly to stockpile a shelter with champagne, caviar, and frozen pastries, against a threat of war or natural disaster, when apple juice, peanut butter, and crackers will sustain you just as well, for a fraction of the cost. It is therefore silly to buy gold to insure your economic future when purchasing silver would give you between 20 and 50 times the value at today's prices (gold around $1750 and silver around $35 per ounce each). Even for people playing the metals markets as investors or speculators, without concern or consideration of using gold as future money, the price of gold relative to silver will continue to change in favor of silver and the cost of investing in gold will require more capital for less profit relative to silver as time goes on.

So when is it a good time to buy silver or even gold if you are still so inclined? Anytime between now and a global depression, when you will presumably spend it to maintain a supply of food clothes, shelter, purchase raw and finished commodities, pay wages, make loans, etc. Individuals, small and large businesses, small and large banks should all have a stock of silver bullion from which they can profit from while stabilizing their local economy with liquid barter money. It does not matter what you pay to purchase silver; today's market value of silver cannot be associated with the value it will have in a global depression. If market conditions cause silver to drop in price to $10.00 per ounce it's a good deal, or if conditions cause it to rise to $100,00 per ounce its still a good deal; obviously a lower price allows you to acquire more, which for individuals should be at least 350 ounces (1-oz per day for expenses for one year); a two year supply would be more prudent, because it gets you through two growing seasons where food production and preservation should be recovering from the depression's initial shock to all forms of production.

The so-called free market concept of buying and selling any stock, bond, commodity or consumable is a fallacy. Open competition in energy and industrial commodities is a myth. Demand does not control supply; rather supply is managed to provide maximum profit no matter how great or small demand may be at any given time. If consumers reduce their demand for gasoline by 10%, the supply of crude oil and refined gasoline are reduced 10%. The oil companies just reduce the amount of oil they pump out of the ground and they reduce the amount of oil that is refined into gasoline, to keep prices as high as the market will bear. Oil is a totally managed market devoid of competition. Commodities like corn, soybeans, sugar, etc., are also controlled in production to provide maximum profits to those who process and distribute products made from these commodities; by controlling the amount of acreage to be used to grow any specific crop. Government programs to keep farm land idle and unproductive, are ongoing to limit supply to consumers so that producers can maximize profits in a managed market.

Gold and silver are similarly managed, but for different reasons. Outside of decorative accessories to our persons and a limited demand for industrial uses, gold is a totally useless metal, which is why most of it sits in vaults and safe-deposit boxes (caves). It serves no economic purpose outside personal decoration; it is no longer money. Gold is to a large extent hoarded, and has always been hoarded by governments and the controllers of economic activity.

Anything that is hoarded serves no purpose but to increase the wealth of the hoarder in a controlled managed market where supply to markets is limited by those hoarding gold to maximize the price a consumer is willing to pay. Oil companies hoard oil and gas in the earth, government and banks hoard gold in vaults, and they all profit from the management of their hoard, with respect to consumption. The latest gimmick to hoard commodities is ETFs. Gold mining companies can for example supply gold to an ETF in relatively large quantities, at a price beneficial to both, and let the ETF sell stock to speculators and use that income to purchase and hoard the miners' gold bit by bit over time. That gold is managed in supply to the market and hoarded in a location where it may easily be confiscated when economic conditions both permit and require that it be removed from the supply and demand activity of consumers or speculators and only be used to benefit the controllers of governments and economic activity (banks).

Because of the continuous relationship of cost of all goods and services in terms of dollars, year in and year out, consumers are mesmerized into thinking that the dollar is stable in its purchasing power; when in fact the dollar's instability continues to erode everyone's wealth, except those who create and loan dollars at interest rates that are higher than the rate of inflation. Consider that the current Federal Reserve Note has lost at least 98% of its purchasing power in the 98-year history of the Federal Reserve Private Banking Corporation; which seems like a sad tale when you consider that the primary responsibility written into the law that created this privately owned corporation was to maintain a stable value for the dollar and maintain full employment for all of our citizens who want to work. The dollar is not stable, has never been stable, and never will be stable, because there is more profit for banks with mild continuous inflation; while the Federal Reserve Private Banking Corporation now admits it cannot create jobs or economic conditions that increase jobs; the Federal Reserve can only protect, preserve, and enrich the banks that own the Fed. I always get a laugh out of the business channels on TV that report the rising prices of gold and silver as nearing or reaching record prices, given in U.S. dollars. They cannot seem to understand that gold would have to go above $2400.00 per ounce today to have the same purchasing power that it had in 1980 when it reached more than $800.00 per ounce; and silver would have to rise above $150.00 per ounce today to have the purchasing power that it had in 1980 when it reached over $50.00 per ounce. Gold at $1750.00 per ounce today is still about 25% below its record price; and silver at $35.00 per ounce is more than 70% below its record price. The dollar is not stable and continually rising prices of everything, year in and year out, prove it.

Silver is a great example of commodity management to protect the profitability of big banks. Unlike gold, silver is both an industrial commodity and a consumer money. Although it has not been used as money per se since 1980, when many retail businesses were accepting silver as payment in place of paper dollars during the last big run up in gold and silver amidst the 1970's high inflation; silver will rear its head as money in inflationary times; provided there is a large enough supply to assist bartering and displace fiat dollars. The big banks are very much concerned about the competition of silver as money and are actively supporting the removal of as much as they can from the possession of ordinary citizens. In times of accelerating inflation, economic activity can only be controlled by banks if everyone must use their instantly created fiat dollars at their profiteering rates of interest. Obviously banks make profits off debt; much of that debt is long term at relatively fixed interest rates. This represents fixed income for banks, which would be eroded by inflation if they cannot be rolled over into new loans at higher interest rates. While accelerating inflation causes many businesses and retailers to look to direct barter or stable replacement money for the fiat paper money that may be declining in purchasing power. Outside of direct barter, goods for goods, silver is the only competition for Federal Reserve Notes to fulfill the role of money.

So control and removal of silver from the pockets of consumers is essential to controlling economic activity during the upcoming run away inflation. The banks must force everyone to use their fiat money at their interest rates to maintain control of all economic activity from which they can profit. Hence all of this activity in the past year advertising for people to sell their gold and silver to refiners where it can be concentrated into bullion and stored by banks in ETFs, or sold into industrial consumption. Every time there is a run up in the price of gold and silver there is a coincident increase by refiners to purchase these metals, then the price falls, while the latest roundup of precious metals is consumed by ETFs, governments, and industry; then another round of price pumping removes more gold and silver from personal possession, until there will be insufficient gold and especially silver to compete with Federal Reserve Notes as money in a failed and hyper-inflating economy. But without silver to act as a relatively stable currency during a depression involving hyper-inflation of Federal Reserve Notes, economic revitalization will be nearly impossible, because continually devaluing fiat dollars will not be trusted or exchanged for any significant transactions and direct barter is too slow a process to significantly and quickly improve any economy.

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Money, Gold and the Gold Standard



1. Introduction

Croesus, King of Lydians (Asia Minor), has been the symbol of wealth and power since ancient times. 650 BC he implemented his idea of making money from gold by having coins minted which then became official currency.

A new "era" had begun. The new small and handy exchange objects soon spread throughout the cultural area of the then Greek world and the adjoining regions.

Money represents the joint measure of all economic transactions. On the one hand, it is the (interim) means of exchange, which simplifies the exchange of goods (trade) amongst one another and, on the other hand, it embodies the function of the maintaining of value as well as a calculation unit.

Then, as today, money is a generally accepted means of payment prescribed by the state. The Latin word for money is "pecunia" and was derived from "pecus" = cattle.

When browsing through the history books of mankind, different objects (such as incense, wheat, metals, salt, stones, furs, shells, cigarettes, alcohol, paper money, etc.) were used as money medium, depending on the era.

Gold and silver were particularly significant here. This was and is not coincidence, because they are an ideal exchange and value maintenance medium due to their properties.

Wheat is only a luxury item in the event of a famine, but may rot and is thus not durable.

A diamond is durable and beautiful to look at, but arbitrarily divisible and similar.

Gold can be divided and melted arbitrarily and is in limited supply and has been known for centuries.

The history of money can be broken down into several steps, which may be by topic very different, but cannot be held apart in terms of time. In general, we distinguish the following steps: Natural exchange (goods for goods), natural money (a good, e.g. wheat or shells, was defined as money), metal money(full-value coins made from precious metals, expert term face-value coins, inferior to uncovered coins, expert term secondary coins),

cash (covered paper money and coins), as well as bank money is also called bank money (out money today, which is based on the creation of credit).

2. A glance into the past

In old Mesopotamia (3000 to 2000 BC) there was a money system that could be called the predecessor of the gold standard.

To be precise, the name "wheat standard" would be more befitting, because the underlying was not gold but wheat. It was defined that 1 shekel = approx. 170 grains. The word "she" roughly means wheat and "kel" was a measure similar to a bushel.

(The word "shekel" still exists in Hebrew as the name for the Israeli currency.)

Already back then, the attempt was made to define the exchange good (= money) by specifying money to the weight of the underlying (wheat) per unit. However, this money system was unsuccessful because wheat is entirely unsuitable as the underlying for a money system. (rotting, difficult storage, differing harvests, etc.)

In ancient times pieces of metal were finally applied as sign or emblem. Initially, every lump of gold had different measurements and weights, meaning that the value determination of every individual piece had to be re-established when trading; this meant that finally the idea was born to standardise the dimensions and weight of the metal pieces - the coin was born.

The thus minted coins made of gold (and silver) represent a gold currency, because they embody the value of the money in the form of firmly defined gold or silver proportion.

The fact that countries with a gold currency existed longest in history is remarkable.

The Eastern Roman Empire existed after introducing the solidus by Constantine the Great in 324 for more than 12 centuries, the Republic of Venice for half a millennium after starting to mint the ducat in 1284.

When introducing a gold coin currency, Julius Caesar saved Rome from a demise which would have occurred 400 years earlier. Rome only collapsed when the successors to Caesar continuously reduced the gold content of the coins.

Gold or silver coins of that time did not only have many benefits, but also drawbacks. Some drawbacks were the weight, storage and transport - in particular of large amounts over long distances.

Also the many centuries of attempts to dilute and minimise the precious metal content of the coins, had an adverse effect on money stability.

After several attempts, the gold deposit standard was implemented in Europe in the 17th century. It could be regarded as the predecessor of the gold standard, although it involved silver and not gold.

The historic gold standard, which is generally referred to in the publications and vernacular, started its global triumphal procession from England in the 19th century.

Here, an exchange rate set by the state was agreed. The value printed on the paper money was deposited in gold. The paper money was re-convertible at any time back into gold, while the exchange rate was the same.

A gold standard, i.e. a partial cover of the state money by gold, no longer exists globally. Some countries do have gold reserves (e.g.: USA 8,146 tonnes, Germany 2,960 tones, Switzerland 2,590 tonnes decreasing, France 2,546 tonnes, etc.), but they are in no way related or proportional to the relevant national currency.

If must, however, be noted that countries such as Mexico or Russia announced in 2001 to issue official currency money with silver or gold coins. On the internet numerous private providers, such as eGold or eDinar, offer a gold-covered currency on the basis of a clearing account.

2.1. The two forms of the gold standard

In the late Middle Ages, gold coins were the currency with the highest nominal value. Goldsmiths were regarded as particularly suitable to check whether the coins were pure and genuine. In addition, they had stable cassettes, in which they could protect the gold securely from thieves; this meant that private gold was deposited for safety reasons. Goldsmiths issued a receipt for the coins and charged a small safekeeping fee. If the owner wanted his gold back, he redeemed the receipt.

Over time, it was regarded as safer and, in particular, far more convenient to pay open invoices simply with such receipts. This means that the receipts of the goldsmiths became pledges to pay for the promise. And as soon as someone accepted the receipt as payment, he implicitly concluded a purchase agreement with the goldsmith, who thus fulfilled the function of a bank.

Summary: This type of gold standard is the gold deposit standard, where gold or silver was saved in a central clearing office (collection office), which corresponded to a gold coverage of 100%. In turn, the businessmen were issued with a voucher (=money substitutes) in paper form. With this credit, further transactions could be made in terms of accounting or exchanged for other goods and services.

The gold deposit standard, although based on silver, was used by private clearing banks, which played a major role in Venice, Genoa, Nuremberg, Amsterdam and Hamburg from the 17th century. In the 19th century there were more than 30 private so-called "note banks", which all issued vouchers. The Hamburg-based clearing bank (Hamburger Banco) had its own currency for more than 300 years, the so-called "Mark Banco", which was always linked to the specific silver price and thus fully stable.

However, Hamburger Banco nearly collapsed in 1857 when the businessmen had to withdraw silver and the bank was devoided of its precious metal. The crisis was avoided through major silver supplies from Austria-Hungary. A couple of years later, the private bank was closed by the state.

(It must be noted that this currency was simply a calculation currency which was never minted.

Mark was an old German weight measure, approx. half a pound).

A slightly different variant was the Banque Royale in France, founded in 1716 by John Law, which went down in history as the first state central bank. Law promised to cover bank notes with gold. The gold owners (mainly noble men) gave their gold to the bank and received shares in Banque Royale in return. Compared to interest-free gold, the shares promised a dividend. The gold served as the basis of trust for the issue of bank notes (livres). The notes were issued as credit to the state.

A couple of years later, John Law founded the Mississippi Compagnie, whose shares were sold for livres. Their business purposes was to promote the extraction of gold in Louisiana, which was a French colony at the time. In reality, the continuously increasing equity capital was diverted to the state treasury for consumption purposes. The more notes John Law's central bank brought into circulation through state loans, the higher the share price of John Law's Compagnie rose. As all bank notes were used for state consumption, they did not have any real value, except for the original gold amount.

In 1720 the first run on Banque Royale occurred. John Law was forced to undertake exchange control. He banned the private ownership of gold and jewellery in order to increase the gold stock of the bank. But the bank nevertheless went under.

The first central bank with strict rules for the gold cover of the bank notes in circulation was the Bank of England. Established already in 1694, it was forced to compete with private issue bank for the issuing of loans to the British state in the first 150 years of its existence.

Its main competitor was the South Sea Company, which in 1720 redirected the capital flowing out of the Mississippi Compagnie into its own shares. The money was partly invested into some opaque projects and partly in state consumption. The South Sea Company turned out to be as equally dubious as the company on the Mississippi, and its share prices and the trust in pound notes ended in a South Sea bubble.

The Bank of England survived the competition. The issuing of notes was subjected to a strict limit in 1844 as a result of the negative experiences, meaning that notes for a maximum of 14 million pounds were allowed to be uncovered. (Peel's Bank Act). This trust contingent was covered by state securities, but did not have gold as the underlying. Every additional pound could only be issued if purchasing gold.

This resulted in the classic gold standard as the first internationally valid currency system with paper money on a gold basis, with which issuing banks were allowed to issue more vouchers (money) than they held in stock in the form of gold (=partial gold cover).

A 100% cover with gold, as with the gold deposit standard, no longer existed, but a minimum cover was introduced. Gold hence only played the role of a regulative, because it was not possible to lend more than permitted by the cover threshold ("golden break"). We will come back to this later.

When fixing the parity, Sir Isaac Newton made a mistake in 1707 (the gold-silver exchange rate was wrongly calculated), with the result that gold and not silver became the standard.

At the start of 1800, Britain was regarded as the world's leading trade nation and thus the classic gold standard became the global system in the following years, after a short interruption.

Due to the war between Britain and France, which erupted in 1802, the Bank von England had to suspend the gold redemption of its bank notes. The gold prices subsequently rose strongly. (On the real reasons of this process, the banker David Ricardo informed the public in 1810/11 in his famous thesis On the High Price of Bullion.) After the end of the war in 1815, Britain reverted to the gold standard.

Other countries (France, Belgium, Italy and Switzerland) founded on 23.12.1865 in Paris a common coin association, which went down in history as the Latin Monetary Union. 3 years later (in 1868), Greece joined the association. Other countries, such as Austria, Finland, several small European states, some states in Central and South America, the colonies of contracting states, the German Empire (officially in 1873) and other states assumed the rules and regulations of the Latin Monetary Union.

The objective of the monetary union was to create a common money exchange as well as eliminate exchange rate fluctuations in order to establish in the long term a global currency covered with precious metal on the basis of the franc.

An outstanding figure in the 1870s was Britain's Prime Minister Disraeli (in office: 1868 and 1874-1880). It is more or less thanks to him and his connections to the Rothschild family that the international gold standard was established and London became the centre of the international currency system.

It must also be mentioned that the Rothschilds were the world's leading gold dealers.

Another important factor for the success of the gold standard were Britain's domestic policies. The link of monetary and employment policies was little known, the influence of trade unions and socialist parties insignificant. National bankers were able to implement their monetary policy in a strong currency and low inflation without any consideration.

The strict policy of a stable currency gave national banks a lot of trustworthiness. Therefore, they had the opportunity to influence the behaviour of the investors - which was particularly beneficial in times of crisis.

Every currency was - in line with the British model - simply a national name for a certain amount of gold, while the gold price (per troy ounce) was specified by the intervention policy of the Bank of England at its London gold market. It remained (unchanged) for nearly a century at 3 pounds 17 shillings and 9 pence.

(parity rate: 1 kg of gold = £ 136.57 = M 2,790 or £1 = M 20.43).

This resulted in fixed, unchangeable exchange rates of the currencies amongst one another.

This means that there was a global currency, gold, which was circulated as different paper money throughout the world, but interlinked through fixed exchange rates.

With a gold content of the pound of 9 grams of gold and of the thaler of 3 grams of gold, everybody knew that 3 thalers = 1 pound and 1 thaler = 1/3 pound remained such, because the monetary laws could be changed by parliaments but not by markets.

It must again be pointed out here that not money but gold is the measure.

Money is measured by gold and not the other way round. (Money was always devalued compared to gold, an increasing amount of money units had to be handed over per gram of gold.)

The gold standard was until 1914 a guarantor for international stability, stable prices and full employment for nearly a century.

The gold standard's stability was based on the strict compliance with national laws and cover provisions and the trust of the world of finance in the reliability of the system.

This is all the more remarkable as there were no international regulatory and monitoring authorities (IMF, World Bank, etc.).

(A couple of interesting calculation examples regarding gold then and today can be provided by Dr Timmermann.)

In addition, it should be mentioned here that employment rose and unemployment decreased during the era of the gold standard. Unfortunately, as the images prove, this fact is often presented differently.

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Money, Gold and the Gold Standard

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pure gold bars

Gold. The very name of gold excites people just like you.

Did you know though, that everyday individuals, just like you and me can buy pure gold bars, gold nuggets, even gold bullion, gold ingots, 999.9 gold and 1oz gold bars very quickly and easily over the internet and online from highly reputable and totally trustworthy sources?

Would it surprise you even more if I told you that some of the best deals that you can get online for buying pure gold bars, can be found on your old favorite marketplace of all time in our modern age - Ebay? Astonishing isn't it?

The answer though is Yes You Can!

Someone, just like you can buy pure gold bars and find them for sale, right now on eBay. And with eBay's Positive Feedback Trader Rating system, there really is no reason for you to be afraid of buying from upon this marketplace.

Invest in gold for your own future and the future of your family today! Here we provide you with the: Top 3 Reasons To Buy Gold ... pure gold bars, gold nuggets, gold bullion and gold ingots for investment purposes or just for the joy of owning this most valuable commodity known to man.

Gold is an independent asset, it moves quite independently from the economic cycle. It's really not too hard to understand this since one must consider the sheer diversity of it's supply and demand base, this is afterall, the penultimate determining factor of price movements in the market place.

Commodities tend to typically fall during economic recessions, since the raw materials used in the production of non essential goods and services declines. However, the demand for gold, in comparison to other commodities is actually quite small. In 2007 just 14% of gold demand came from the industrial sector which was mostly, electronics. This is in great contrast to base metals and even other precious metals where the greater demand comes from industry. The upside of this is that gold is not so susceptible to the vagaries of the general economic market conditions. With that being said however, the demand for gold in electronics is likely to fall if the overall economy does in fact fall into a full blown recession. as consumer spending on electronics naturally falls with it.

Recession in the US would without a doubt have some negative implications for the gold jewelry demand in North America, as consumer spending slowed down. All is not lost however, far from it as regards gold investing is concerned since this would at least be offset by the increased share of gold jwelery within the rail sector. Added to this point, gold is actually much less vulnerable than other jewelry materials, such as diamonds or platinum to a US recession as far greater demand for gold comes from outside of North America - 70% of diamond jewelery demand comes from the US, compare this with just 10% for gold.

The final source of demand that comes from investors themselves, people like you and me. Investors buy gold for a huge number of reasons. One of the chief reasons amongst these are gold's inflation and dollar hedging properties, both of which factors have been proven for a very long period of time. How a recession affects investment demand would depend, in part, on how inflation and the dollar react.

The upcoming and brewing recession has so far been rather positive for gold on both fronts. The dollar has continued it's downward slide, while inflation has unusually enough, headed higher. U.S. consumer prices increased at an annual rate of 4% in February this year, up from 2.4% just a year earlier. If trends continue as they are, investment demand for gold as an inflation and dollar hedge is very likely to remain strong. And if the recession does deepen it's affects amid concern over the health of the U.S. backing sector, the demand for gold as a safe haven asset is also likely to remain most robust.

What does this mean for you? Gold is right now, one of the most solid investments that you could consider making, is the message in a nutshell.

If we look at the supply side, there are three main sources, 1/ Mine production. 2/ Official sector sales and 3/ Scrap or recycled gold. Mine production by far is the biggest element from these three. This accounts for a full 70% of total supply in the last year. This upward trend in mine supply of gold production that was by way of example underway in the 1980's was not stopped by the 1990 recession. The U.S. economy suffered an outright contraction, while world GDP growth slowed to 1.6% from 2.9% the previous year. Nor was the downtrend in mining output that began in 2001 reversed by the sharp acceleration in world growth that followed.

Mine production of gold is influenced by very specific factors, for example the level of exploration spending, the success or otherwise in the discovery of new gold deposits and the actual cost of extraction and processing, which actually means that some new deposits are not worth their weight in gold, extracting from source. The lead times in gold mining are often fairly extracted and prolonged affairs, it can take years to re-open a formerly dis-used closed mine, let alone further expenses incurred from finding and mining new gold reserves.

Another factor is the Central Bank themselves and their strategic decisions to buy or to sell gold, decisions which tend not to be reactive to the economic cycle. These decisions by this body are usually made several years in advance and are then carried out over a timespan of years according to their own plans, for strategic purposes. In the country of Switzerland for example, the proposition to sell gold, or the first gold sales program, was first recommended by a group of experts in 1997. However, the actual sales program did not even begin to commence proceedings until the May of 2000, with the sales then taking place over a period of 5 years, such was the confidence in this commodity to deliver it's long term gains and profits for them. If this is good enough decision making on a strategic basis for them, this tells you that the long term investment for gold bodes well for you also.

Gold scrap supply is influenced by many factors, the most important of these perhaps being price and price volatility, however recessions and periods of economic distress have also had an impact. To demonstrate, one of the most dramatic examples was when Korea was pushed into recession during the 1998 Asian currency crisis, it's scrap supply increased by almost 200 tonnes as the government then bought gold from the local populace in exchange for won denominated bonds. It then went on to sell the gold upon the international market in order to raise enough dollars currency to avoid defaulting on it's external debt.

In summary, a U.S. recession does not have any negative implications for the gold price thanks to the unique drivers of gold demand and supply. The only element of gold demand that could be affected by a recession is investment demand, but that in turn will also depend to a large part on the actual 'type' of recession. So far, the brewing recession has been positive for gold investment purposes as it has been accompanied by a rise in inflation and a falling dollar, which has boosted the demand for gold as a dollar and inflation hedge.

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Jewelry and Gems

Jewelry and gems, The Buying Guide

Rare and Precious:

Gold and Platinum

Gold: The timeless choice

Gold jewelry is very popular today and available in more styles, colors, and finishes than ever before. It is also a popular choice for setting gemstones. But it is very important to understand gold, and differences that affect price, in order to avoid confusion about the wide range of prices that seems to pervade the market for what may appear to be the "same thing." As with gems, wherever there are significant price differences there are usually quality differences. The key to getting value in gold is understanding what accounts for differences in quality and price.

What is gold?

Gold is one of the world's most precious metals. It is so soft and workable that one ounce can be stretched into a five mile long wire, or hammered into a sheet so thin that it could cover a hundred square feet. It is one of our rarest metals, and since pure gold doesn't rust or corrode, it can last forever. Interestingly, gold is present almost everywhere around us; in the earth's crust, in seas and rivers, and in plants, but it is very difficult and expensive to extract. Approximately two and a half to three tons of ore are needed to extract one ounce of gold.

Most gold used in jewelry is an alloy

Gold is the most popular metal used for jewelry today. The simple gold wedding band probably accounts for more of the world's gold than any other single type of jewelry. But pure gold is very soft so it is usually mixed with other metals to make it stronger and prevent it from bending too easily. When two or more metals are mixed together, we call the resulting product an alloy. Most gold used in jewelry is an alloy; and the metals added to the gold are also called "alloys."

What is a Karat? Or is it Carat?

In jewelry, the term carat (or, Karat) has a double meaning: carat is used as a measurement of weight for gemstones, with one carat weighing 1/5 gram; carat is also used in countries around the word to indicate the amount of pure gold in a piece of gold jewelry. In the United States, however, when using the word to indicate gold content rather gemstone weight, it is spelled with a "K;" hence "karat," to avoid confusion. Jewelry should always be marked to indicate how much pure gold it contains.

In the united States a karat mark, abbreviated to K or KT, indicates the amount of pure gold present in the metal. The word karat (carat) is derived from the word for fruit of the carob tree: in Italian, carato; in Arabic, qirat; in Greek, keration. The seeds of the fruit were used in ancient times for weighing gems. Also, the pure gold Byzantine coin cald the solidus weighed 24 karats. therefore, a 24 karat mark (24K or 24KT) became the mark used to indicate that something was pure gold.

To understand the concept as applied to gold, imagine that, "pure gold" is a pie into 24 equal "slices" or parts. Each karat equals one part of the pie. So, 24 KT would mean that 24 parts (out of a total of 24) are gold. In other words, 24 KT would be 100% gold; or, pure gold. In the 18 karat gold jewelry, 18 parts are pure gold and six are another metal (or, 18/24 = 3/4 = 75% pure gold); in 12 karat, 12 parts are pure gold, 12 parts another metal (12/24 = 1/2 = 50% pure gold). And so on.

I some cultures, 24 karat gold jewelry is required for certain jewelry pieces, but it's generally agreed that 24 karat, or pure gold, is too soft for jewelry use. In some parts of the world, 18 KT 0r 20 karat is preferred because of its brighter yellow color and because it is considered "purer" and more precious. In the United States, we prefer 14 or 18 karat gold because it is more durable than higher karat gold. We caution clients about the risk of high karat gold (20 KT, 22 KT, or 24 KT) for a gem-studded setting because prongs can be too easily bent open accidentally, resulting in the loss of the stones.

In some countries such as Italy, the percentage of pure gold is indicated by a number representing how many parts; out of a total of 1,000 parts, are pure gold. One thousand parts would be the equivalent or 24 karat; 750 means 750 parts of 1,000: 750/1000 = 75/100 = 75% pure gold. This corresponds to 18 KT.

A word about Russian marks

Old time pieces made in Russia were marked to indicate the content on its equivalent to a "zolotnik." A piece marked 96 contained as much gold as 96 zolotniks, which equals pure gold; 72 equals 18 KT (750); 56 equals 14 KT (585).

To be called gold, what is the minimum gold content?

Many countries have established minimum standards that must be met for items to be legally called "gold." The laws governing the actual content of gold required in piece of jewelry, however, vary. In the United States, to be called "gold," the item must be at least 10 KT; in England and Canada, 9 KT; in Italy and France, 18 KT.

The many colors of gold

Pure gold is always yellow. But because pure gold is too soft for most jewelry use, and must be mixed with other metals (alloys) to increase its hardness, the color can also be modified by adding varying amounts of these other metals. Those usually added to gold for jewelry use include copper, zinc, silver, nickel, platinum, and palladium (a metal in the platinum family). Depending upon which alloys are used, a variety of colors can be produced. Another practice is to plate 14 KT gold jewelry with 18 KT for an 18 KT look, that is, a stronger yellow color. White gold is also frequently plated with rhodium, a rare and more expensive metal from the platinum family, to create a whiter, brighter finish.

Some people are allergic to nickel and should not wear white gold containing nickel. For this reason, a white gold alloyed with palladium is being used by some manufacturers. White gold that contains palladium will be more expensive than yellow gold or white gold containing another alloy. But it is still less expensive than platinum.

What causes skin discoloration with some gold jewelry?

Pure gold doesn't tarnish and won't discolor the skin, but alloys in the gold can corrode and produce discoloration to the skin in contact with the gold, especially under moist or damp conditions. Fats and fatty acids present in perspiration can set up a corrosive reaction, and the problem can be worse in warm, humid areas, especially where chloride (salt) is in the air.

Smog can also be a problem. Smog fumes can introduce chemicals that cause the alloys in gold to tarnish. The tarnish then rubs off, discoloring skin or clothing.

Cosmetics may be culprit.

Another common cause of discoloration is metallic abrasion caused by some makeup. Some makeup contains compounds that are actually harder than the jewelry with which it comes into contact. As the harder compounds rub against the jewelry, they cause tiny particles of metal to flake off, forming a darkish looking dust. When this dust makes contact with a soft, absorbent surface such as skin or clothing, it forms a black smudge.

There are several possible solutions to the problem of skin discoloration. First, get into the habit of removing jewelry often and cleaning the skin that has been in contact with it with soap and water. Keep your jewelry clean as well, and wipe it periodically with a soft cloth to remove tarnish. Next, try using an absorbent body powder, one free of abrasives, on all areas of your skin that are in contact with jewelry.

Pay attention to the design of jewelry you select if skin discoloration seems to be a problem; wide shanks can cause perspiration, and rings with an inner concave surface can cause moisture and contaminants to collect, causing both discoloration and dermatitis.

finally, try switching to a higher gold content or to a different manufacturer. The higher the gold content, the less likely it is that discoloration will occur because in the higher karat gold there is less of the alloy, such as copper, silver, nickel, that might corrode. People who have a problem wearing 14 KT gold jewelry may find that the problem disappears with 18 KT gold.

Sometimes simply changing to a similar product by a different manufacturer may solve the problem. This does not mean that one product is inferior to the other. Manufacturers often use different combinations of alloys, or different percentages or ratios of alloys. They may look the same, but you might find you can wear one manufacturer's line better than that of another.

Since different metals, and different ratios, are used to produce different colors, discoloration may result when wearing one particular color or gold, but not when wearing other colors. If there seems to be a problem when wearing white gold, try white gold alloyed with platinum rather than nickel, since platinum won't corrode.

Determining value requires more than scale!

- Weight is one factor that goes into determining the value of a piece of gold jewelry. Gold usually sold by weight, in grams or pennyweights. There are 20 pennyweights to one ounce; if you multiply grams by 0.643, you will have the number of pennyweights. Weight is important because it is an indication of the actual amount of pure gold in the piece. However, it is only one factor only to consider. When buying gold from a gold manufacturer, for example, factored into the price per gram is the cost of gold PLUS the cost for labor and workmanship. The price always takes into consideration:

1) The type of construction,

2) The means of production, and

3) How the piece is finished.

- Design and construction is important not only because of the piece's finished look, but also because specific details in the overall design and construction affect comfort, wear-ability, and ease in putting the piece on or taking it off. Good design requires excellent designers, and extra care and attention to small mechanical details. This adds to the cost of any piece of jewelry.

In addition, jewelry design is also becoming recognized as an "art," and jewelry designers as "artists." some award winning designers command top dollar, as do top painters, sculptors, and other artists. A piece of gold jewelry made by a fine designer, especially if it is a one-of-kind or limited edition piece, will sometimes sell for much more than another piece of mass produced gold jewelry of the same weight and gold content.
In looking at a piece of gold jewelry, you must also consider the type of construction necessary to create a particular design or look. Is the construction simple or complex? Did the piece require extensive labor or minimal labor? Did it require special skill, talent, or equipment?
To ignore the design and construction factors and assign a value to apiece of gold jewelry based on gold content (i. e. 14 KT, 18 KT, etc.) and weight alone would be equivalent to placing a value on a painting based on the cost of paint and canvas alone.

- Production can affect price significantly. Is the piece produced by machine or by hand? The type of construction required to create a particular design may require that it be made entirely, or in part, by hand, while others can be completely made by machine. Some designs may be produced either way, but those done by hand will have a different look, and cost.

- Finish is where we take into account the care and labor costs associated with the actual finishing of the piece. For example, are there any special skills or techniques required to put on the final touches that make the piece distinctive, such as engraving, milgraining, hammering, or granulation? here we also need to note whether or not the piece has been carefully polished to remove any scratches that might diminish its beauty, or rough edges that might be abrasive or catch or snag on fabric. Consider whether the item was hand polished or machine polished; some pieces are machine made, but finished by hand. We must also take into consideration any special finishes to the metal itself, such as a florentine, matte, or sand blasted finish. Each step in the process, and each special step or skill required, adds; sometimes dramatically, to the cost.

Adding it all up

Many pieces of gold jewelry look alike at first glance. When examined carefully, however, if often becomes clear where the difference lie, both in quality and cost. Ask your jeweler to help you understand these differences by comparing different qualities for you. Only after carefully evaluating all these factors can you appreciate gold jewelry and recognize cost differences and real value.

Is that "Bargain" really a bargain?

Beware of underkarating, which is a serious problem around the world. If a piece of gold jewelry is underkarated, it means that the jewelry is marked to indicate a certain gold content, but actually contains less than is indicated. Needless to say, retailers who knowingly sell underkarated gold jewelry create the impression that they are giving you a bargain because their prices are so low, but if there is actually less gold ( and more alloy, so the piece would have a comparable weight to the others you might be considering), you aren't getting any bargain. Unfortunately, most people never learn that they have bought underkarated gold. Thus, it is very important to buy gold jewelry from a reputable source, one that makes the effort to check its gold shipments carefully.

Look for a manufacturer's registered trademark. Being sure gold is properly represented in terms of its value is what really matters; you should get what you pay for. Buying from a reliable source is the first step. In addition, be sure to look for a manufacturer's registered trademark, a mark stamped near the karat mark. To avoid being held liable themselves, more and more jewelers are buying only from manufacturers willing to stamp what they make with their own mark, a mark registered with the U. S. Patent and Trademark Office. Buying gold with a "manufacturer's trademark" is one way to help assure you get what you pay for, since the product can be traced to a specific manufacturer, whose name and reputation are on the line.
Fine, expensive gold jewelry should always be tested. While testing for exact gold content requires assaying, it is usually relatively easy to detect any underkarating that is serius enough to affect the value of a specific piece of jewelry and the price paid. Any jeweler or gemologist appraiser can make such determination, in most cases, quickly and easily with only a gold tester or by using the streak test. You should be aware that an electronic gold tester, some very heavily plated pieces might give a false reading indicating gold when the piece is only base metal. For this reason the streak test is better but the person doing the test must be sure to take a file or carbide scriber and make a very deep scratch in order to penetrate the plating for an accurate test.

There are strict laws pertaining to gold content and marks used to indicate it. Take the time to understand what you are buying, buy only from a reputable source, and be sure to have it tested. If you do, your gold jewelry will give you a lifetime of pleasure.

Platinum: cool, classic, and contemporary

Platinum, which has been used in jewelry since the turn of the century, became especially popular during the Edwardian period because its malleable character made it a natural for the intricate and lacy work style of the day.

Platinum is frequently used in finest jewelry and to set the most valuable gems because it's more "workable" and easier to move the prongs or setting around the stone, thereby reducing the risk of accidentally damaging it. Long a favorite for classic looks and for the finest diamond settings, platinum is now evolving as the metal of choice for design trends; sleek, bold, contemporary looks for brooches, necklaces, chains, and earrings. Sometimes platinum is alloyed with another metal to create an interesting color, or used alongside gold to create an innovative look.

Nothing is purer than platinum

Platinum is even more rare and valuable than gold. The platinum family is composed of six elements; platinum, palladium, iridium, osmium, rhodium, and ruthenium. These six silvery white metals are generally found together in nature, with platinum and palladium the most abundant, and osmium, rhodium, and ruthenium the rarest.

Platinum is rarest and heavier than other precious metals and as the purest, it's sometimes referred to as the "noblest." Most platinum jewelry also contains small amounts of the rarer and more expensive elements iridium or ruthenium for added strength.

Because platinum is so pure, it rarely causes allergic reactions. This is greatly appreciated by those sensitive people who experience reactions to or skin discoloration from jewelry containing base metals. In addition, platinum is somewhat stronger than other precious metals.

Platinum is identified by karat marks. In the United States, the abbreviations PT or plat indicate platinum. In Europe the numerical marks 950 or PT950 indicate platinum. The finest jewelry often uses platinum mixed with 10% iridium or ruthenium for added strength. This cost more since these are rarer and costlier metals.

Rhodium plating

Rhodium, another member of platinum family, is the brightest and most reflective of all the platinum metals. Rhodium is also harder and whiter than platinum and, because it is so durable, doesn't wear off quickly, as does gold plating. A a result, it is often used to coat gold and platinum jewelry.

Rhodium plating should be considered especially for people who have allergic reactions to 10 KT or 14 KT gold, since it can help eliminate reaction to the alloys.

Yellow gold, white gold, or platinum: Which one?

To decide whether or not you want yellow gold, white gold, or platinum, you must first decide which color metal you prefer. This selection usually depends on personal preference, skin tone, and the color of other jewelry you may own. If your choice is yellow gold, keep in mind that it is available in several different shades, including a pure yellow, a pinkish yellow, and greenish yellow.

If you decide yellow is the color you want, then you must decide whether to get 14 Karat or 18 Karat. Certainly, 14 KT is more affordable than 18 KT; it is also harder. But the yellow won't be as bright. If you refer a brighter yellow, we recommend that you ask your jeweler for a 14 KT gold with an 18 KT finish, that is, an 18 KT coating over the 14 KT. After several years the finish may wear off, but it can be re-plated foe a minimal charge.

If you prefer a white metal, your choice may be more difficult. Even though white gold and platinum may be similar in appearance, they are very different metals. As we mentioned, platinum is much more expensive, so if you're on a limited budget, white gold may be the sensible choice. White gold is very hard and very resistant to scratching but exhibit a brownish or yellowish cast which must be covered by rhodium plating. As we mentioned, this plating will eventually wear off, although it can easily be re-plated.

One significant disadvantage of white gold is that it is more brittle than platinum or yellow gold. So if you decide on white gold, be sure to have your jeweler check the setting; especially prongs, at least once a year.
Platinum is somewhat softer and more malleable than white gold, making it an ideal choice for very intricate settings that require intensive labor. It is much easier to use platinum for pave work, that is, designs in which the stones are set as closely together as possible, With platinum, the jeweler can also make a safer setting because a larger prong can be used, since platinum conforms so easily to the shape of the stone, reducing risk of damage. Over time, platinum also holds up better than gold
One disadvantage of platinum is that many jewelers do not have proper equipment to work with it. This, combined with platinum's cost, results in more limited variety of styles from which to choose. If you like basic classic design, you shouldn't have a problem finding a setting you like. But if you need custom work to get the look you want, it can add substantially to the cost of the finished piece.

In final analysis, it is up to the individual to weight the relative advantage and disadvantage of gold or platinum. Whichever precious metal you select, there are many beautiful styles and designs from which to choose.

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Why Should I Buy Gold?

Why Should I Buy Gold?

The world has been in love with gold ever since it was discovered. It is called a precious metal because it has a high economic value and is relatively scarce in relation to the level of demand for it. Gold was the standard in which the values of many currencies around the world were based until recently; because of confidence in its ability to hold it’s value over the long haul. At times of trouble, people always default to valuable portable property such as gold, diamonds and other valuable gems.

Gold has been the preferred metal for wedding rings in the west for a long time. It is very rare that couples exchange rings other than gold rings when getting married. In fact, in some Asian cultures, wealth is transferred unto the newlyweds in the form of gold jewelry.

Gold is very malleable and so has been the preferred metal for jewelers over centuries. It also does not rust or decay. If it gets dull, just applying a quick polish restores it’s luster and shine.

Gold is virtually indestructible and everlasting.

Gold keeps it’s value over time and is easily marketable

Gold is easy to work with so you will get the most beautiful jewelry made out of gold

Everybody loves gold.

What kind of Gold Should I Buy?

Before buying gold jewelry the most important thing to ask yourself is the reason why you are buying. This is important because it will help you determine how much to budget for your purchase, what quality and type of jewelry to buy and from where to buy it.

If you are only interested in buying a gold ring for fun, then you might not care too much about the quality of the ring or the supplier as long as it looks good on your finger. If, however, you are buying an engagement ring, an anniversary ring or a wedding ring, you had better pay more attention to the quality of the ring and the service you can expect from the supplier. A wedding ring, we hope, will be appreciated for a long time and you will want your partner to know that you put some thought into the selection of their ring. You want the perfect ring so you need to make sure that your supplier has a good return or exchange policy and that they are easily contactable.

There are different qualities and colors of gold used in jewelry. The different types of gold jewelry are determined by the metals mixed in with the pure gold, and whether the piece of jewelry is formed as a solid piece, plated or maybe hollow.

Gold Quality:

Pure gold does not rust or tarnish, and people that are allergic to some metals are rarely allergic to pure gold. However, pure gold is very soft and easily bendable. It is also very expensive. So to make it practical for jewelry that can be worn everyday it is mixed with different metals.

Gold jewelry is generally marked 18K, 14K, or 10K. The higher the Karat (k) the higher the percentage of pure gold to other metals in the jewelry.

· 24K gold is pure gold.

· 18K gold contains 18 parts gold and 6 parts of one or more additional metals, making it 75% gold.

· 14K gold contains 14 parts gold and 10 parts of one or more additional metals, making it 58.3% gold.

· 12K gold contains 12 parts gold and 12 parts of one or more additional metals, making it 50% gold.

· 10K gold contains 10 parts gold and 14 parts of one or more additional metals, making it 41.7% gold.

10K gold is the minimum karat that can be called "gold" in the United States. A high proportion of gold Jewelry is made in 10K gold.

European Markings:

Jewelry from Europe may be marked is a different manner with numbers that indicate their percentage of gold like this:

· 18K gold is marked 750 to indicate 75% gold

· 14K gold is marked 585 for 58.5%

· 12K gold is marked 417 for 41.7%

Genuine gold jewelry should have, in addition to the karat marking, a hallmark or trademark that identifies its maker. Sometimes the item's country of origin might also be included. The hallmark or country of origin may sometimes be left out in very small and delicate pieces of Jewelry.

Colors of Gold:

Pure gold is, of course, gold in color. However, gold can be made into jewelry of different and exciting colors by adding different metals to it. When other metals are added to pure gold the result is called an alloy. Any gold alloy from18K, down to 10K can still be called solid gold. Anything less that 10k is not solid gold.

White Gold: Created by adding Palladium or Nickel to pure gold.
Rose Tint Gold: Created by adding copper to pure gold.
Greenish Cast Gold: Created by adding silver to pure gold.

Gold Coated Jewelry

Applying a coating of gold on lesser value metals has always been a way of producing jewelry that looks as valuable as gold but not as expensive to manufacture. This is OK as long as the buyer is aware that the piece of jewelry they are buying is not SOLID gold and as long as they are also aware of the quality of the plating.

Gold Filled Jewelry:

Gold filled jewelry is usually 14k gold heavy-layered over sterling silver. More recent gold-filled jewelry have markings that indicate how much and what type of gold was used for the layer. A marking that says 1/20 12K G.F. means that the jewelry is at least 1/20th 12K gold by weight. Gold filled jewelry generally retain their coating longer than gold plated jewelry.

Gold Plated Jewelry:

The gold layer in gold plated jewelry is usually thinner than the gold in gold-filled jewelry. This means that the goal plating usually wears away more quickly. However, all gold plating is not the same. Some will be thicker and more even than others and thus may provide you with long lasting true gold finish, sometimes comparable to gold-filled jewelry.

Dangers to Watch out for

Gold plated jewelry can provide a great deal of satisfaction and joy to the buyer as long as they know what they are buying. It is unfortunate, but there are still unscrupulous people out there that try to pass off gold plated jewelry as solid gold. The only way to protect yourself from this is to look carefully at the markings on the jewelry; observe the color; feel the weight in relation to the size of the jewelry; and most importantly, know whom you are buying your jewelry from. If you’re not sure take an expert with you when buying.

So Now You’re Ready To Take The Step

When buying gold always aim to buy solid gold if your budget allows. This will last you a lifetime, many lifetimes actually. Anything from 10k to 22k or 24K is good.

If you are allergic to nickel or other metals then you should aim to buy the higher karat gold jewelry such as 18k or 22k gold. It will cost more but you can offset this by buying a smaller piece of jewelry or by buying fewer pieces and only buying ones with higher pure gold content. Your skin is still your most important and valuable piece of jewelry and you should treat it accordingly.

Gold plated and gold-filled jewelry is great for fashion jewelry that will not be subject to heavy usage. And oh yes, try not to wear your gold plated or gold filled jewelry when washing up or using any form of detergents. Although not as valuable or durable, gold plated and gold filled jewelry are cheaper and can last for years if treated kindly.

When wearing Jewelry always remember that a confident and happy wearer can make almost any piece of Jewelry look more beautiful and valuable.

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