Metal Products
Gold
A very ductile and malleable, brilliant yellow
precious metal that is resistant to air and water corrosion.
It is a precious metal that is very soft when pure (24 Kt.). Gold is the most malleable (hammerable) and ductile (able to be made into wire) metal. Gold is alloyed (mixed with other metals, usually silver and copper) to make it less expensive and harder. The purity of gold jewelry is measured in karats. Some countries hallmark gold with a three-digit number that indicates the parts per thousand of gold. In this system, "750" means 750/1000 gold (equal to 18K); "500" means 500/1000 gold (equal to 12K). Alloyed gold comes in many colors.
World Gold Markets
24 hours round the clock market
India in World Gold Industry
Indian Gold Market
Main features of Key Asian Gold Markets
Gold conversion
For example : 10 ounces troy = 311.035 grammes
Market Moving Factors
Gold coated measures
Many gold-coated articles are also used as substitutes for solid karat gold. The thickness of the coatings are often expressed in millionths of an inch, or microinches, and the table below provides a way to translate between these and other measurement units.
1 millionth inch (microinch) = 0.0254 micron
1 thousanth inch (mil) = 25.4 microns
1 millionth meter (micron) = 39.37 microinches
1 millimeter = 39.37 mils
Fine gold content
The minimum fineness is 995 parts per 1000 fine gold and gold said to be 1000 fine is marked down to 999.9 fine. The following fine gold contents of other bar weights are accepted by the London Bullion Market Association (LBMA). These bars are available at the spot Loco-London price plus a premium which varies dependent on prevailing market conditions in different locations.
Jewellery consumption
GOLD THROUGH THE AGES
The history of gold begins in remote antiquity. But without hard archaeological evidence to pinpoint the time and place of man's first happy encounter with the yellow metal, we can only conjecture about those persons, who at various places and at different times first came upon native gold. Experts of fossil study have observed that bits of natural gold were found in Spanish caves used by the Paleolithic Man about 40,000 B.C. Consequently, it is not surprising that historical sources cannot agree on the precise date that gold was first used. One states that gold's recorded discovery occurred circa 6000 B.C. Another mentions that the pharaohs and temple priests used the relic metal for adornment in ancient Egypt circa 3000 B.C. However, it is curious to note that the early Egyptian's medium of exchange was not gold but barley. The first use of gold as money in 700 B.C. is claimed by the citizens of the Kingdom of Lydia (western Turkey). Surely, you remember the kingdom of the famous fortune seeking King Croesus - circa 550 B.C.
Uses of gold
Gold has been prized by people since the earliest times for making statues and icons and also for jewelry to adorn their bodies. Intricately sculptured art objects and adornment jewelry have been uncovered in the Sumerian royal Tombs in southern Iraq and the tombs of Egyptian kings. Significant buildings and religious temples and statues have been covered with thinly beaten sheets of gold. Due to its rarity, gold has long been considered a symbol of the wealth and power of its possessor.
In 2001, it was estimated that 2870 tons of gold were produced worldwide. About 80 percent of that gold production was used to make jewelry, the majority of which was sold in India, Europe and the United States of America. Gold jewelry is universally popular, loved for its lustrous yellow color and untarnishing character. In many Asian countries, such as India, Thailand, and China, gold is important to religious ceremonies and social occasions, such as the Chinese New Year and Hindu marriages in India.
It is a precious metal that is very soft when pure (24 Kt.). Gold is the most malleable (hammerable) and ductile (able to be made into wire) metal. Gold is alloyed (mixed with other metals, usually silver and copper) to make it less expensive and harder. The purity of gold jewelry is measured in karats. Some countries hallmark gold with a three-digit number that indicates the parts per thousand of gold. In this system, "750" means 750/1000 gold (equal to 18K); "500" means 500/1000 gold (equal to 12K). Alloyed gold comes in many colors.
World Gold Markets
- London as the great clearing house
- New York as the home of futures trading
- Zurich as a physical turntable
- Istanbul, Dubai, Singapore and Hong Kong as doorways to important consuming regions.
- Tokyo where TOCOM sets the mood of Japan
- Mumbai under India's liberalized gold regime
24 hours round the clock market
- Hong Kong Gold Market
- Zurich Gold Market
- London Gold Market
- New York Market
| (Rounded Figures) | India (In Tons) | World (In Tons) | % Share |
| Total Stocks | 13000 | 145000 | 9 |
| Central Bank holding | 400 | 28000 | 1.4 |
| Annual Production | 2 | 2600 | 0.08 |
| Annual Recycling | 100-300 | 1100-1200 | 13 |
| Annual Demand | 800 | 3700 | 22 |
| Annual Imports | 600 | ||
| Annual Exports | 60 |
Indian Gold Market
- Gold is valued in India as a savings and investment vehicle and is the second preferred investment after bank deposits.
- India is the world's largest consumer of gold in jewellery as investment.
- In July 1997 the RBI authorized the commercial banks to import gold for sale or loan to jewellers and exporters. At present, 13 banks are active in the import of gold.
- This reduced the disparity between international and domestic prices of gold from 57 percent during 1986 to 1991 to 8.5 percent in 2001.
- The gold hoarding tendency is well ingrained in Indian society.
- Domestic consumption is dictated by monsoon, harvest and marriage season. Indian jewellery offtake is sensitive to price increases and even more so to volatility.
- In the cities gold is facing competition from the stock market and a wide range of consumer goods.
- Facilities for refining, assaying, making them into standard bars in India, as compared to the rest of the world, are insignificant, both qualitatively and quantitatively.
- South Africa
- United States
- Australia
- China
- Canada
- Russia
- Indonesia
- Peru
- Uzbekistan
- Papua New Guinea
- Ghana
- Brazil
- Chile
- Philippines
- Mali
- Mexico
- Argentina
- Kyrgyzstan
- Zimbabwe
- Colombia
Main features of Key Asian Gold Markets
| Country | Market status | |
| Loco london gold trading | Import of gold bars | |
| China | Restricted | Restricted |
| Hong Kong | Free | Free |
| India | Restricted | Restricted |
| Indonesia | Free | Free |
| Japan | Free | Free |
| Korea. North | Restricted | Restricted |
| Korea, South | Restricted | Free |
| Malaysia | Free | Free |
| Myanmar | Restricted | Free |
| Philippines | Restricted | Restricted |
| Singapore | Free | Free |
| Taiwan | Restricted | Free |
| Thailand | Restricted | Free |
| Vietnam | Restricted | Free |
Gold conversion
| To Convert | |
| Weight | Multiply by |
| Ounces troy to grammes | 31.1035 |
| Grammes to ounces troy | 0.0321507 |
| Ounces avoirdupois to grammes | 28.3495 |
| Grammes to ounces avoirdupois | 0.035274 |
| Ounces troy to grains | 480 |
| Grains to ounces troy | 0.0020833 |
| Ounces troy to ounces avoirdupois | 1.09714 |
| Ounces avoirdupois to ounces troy | 0.911458 |
| Kilograms to ounces avoirdupois | 35.274 |
| Kilograms to ounces troy | 32.1507 |
| Ounces troy to tolas | 2.6667 |
| Tolas to ounces troy | 0.375 |
| Kilograms to tolas | 85.755 |
| Ounces troy to taels | 0.83 |
| Taels to ounces troy | 1.20337 |
| Kilograms to taels | 26.7172 |
For example : 10 ounces troy = 311.035 grammes
Market Moving Factors
- Above ground supply from sales by central banks, reclaimed scrap and official gold loans
- Producer / miner hedging interest
- World macro-economic factors - US Dollar, Interest rate
- Comparative returns on stock markets
- Domestic demand based on monsoon and agricultural output
| Percent % (Parts of gold per 100) | Fineness(Parts of gold per 1000) | Karats(Parts of gold per 24) |
| 100% | 999 Fine | 24 Karats |
| 91.70% | 917 Fine | 22 Karats |
| 75.00% | 750 Fine | 18 Karats |
| 58.50% | 583 Fine | 14 Karats |
| 41.60% | 416 Fine | 10 Karats |
Gold coated measures
Many gold-coated articles are also used as substitutes for solid karat gold. The thickness of the coatings are often expressed in millionths of an inch, or microinches, and the table below provides a way to translate between these and other measurement units.
1 millionth inch (microinch) = 0.0254 micron
1 thousanth inch (mil) = 25.4 microns
1 millionth meter (micron) = 39.37 microinches
1 millimeter = 39.37 mils
Fine gold content
The minimum fineness is 995 parts per 1000 fine gold and gold said to be 1000 fine is marked down to 999.9 fine. The following fine gold contents of other bar weights are accepted by the London Bullion Market Association (LBMA). These bars are available at the spot Loco-London price plus a premium which varies dependent on prevailing market conditions in different locations.
| Fine Gold Contents in Ounces Troy | |||
| Gross Weight | Bars of 995.0 | Bars of 999.0 | Bars of 999.9 |
| 1 Kilo | 31.99 | 32.119 | 32.148 |
| 1/2 Kilo | 15.995 | 16.059 | 16.074 |
| 100 Grams | 3.199 | 3.212 | 3.215 |
| 50 Grams | 1.6 | 1.607 | 1.608 |
| 10 Grams | 0.321 | 0.322 | 0.322 |
| 5 Grams | 0.161 | 0.161 | 0.161 |
| 10 Tolas | 3.731 | 3.746 | 3.75 |
| 5Taels | 5.987 | 6.011 | 6.017 |
Jewellery consumption
| Top No. | Countries | 1998 | 1999 | 2000 |
| 1 | India | 622 | 617 | 600 |
| 2 | United States | 379 | 400 | 409 |
| 3 | EU | 414 | 395 | 374 |
| 4 | China | 228 | 204 | 184 |
| 5 | Saudi Arabia | 186 | 167 | 169 |
| 6 | Egypt | 135 | 138 | 128 |
| 7 | Turkey | 142 | 92 | 126 |
| 8 | Italy | 108 | 101 | 92 |
| 9 | Indonesia | 48 | 110 | 88 |
| 10 | United Kingdom | 65 | 68 | 74 |
| 11 | Taiwan | 66 | 66 | 60 |
| 12 | Korea | 35 | 52 | 56 |
| 13 | Pakistan | 53 | 60 | 54 |
| 14 | France | 56 | 56 | 54 |
| 15 | Spain | 61 | 53 | 51 |
| 16 | Mexico | 32 | 42 | 51 |
| 17 | Thailand | 21 | 42 | 51 |
| 18 | Russia | 44 | 40 | 47 |
| 19 | Iran | 42 | 41 | 45 |
| 20 | Japan | 45 | 43 | 43 |
GOLD THROUGH THE AGES
The history of gold begins in remote antiquity. But without hard archaeological evidence to pinpoint the time and place of man's first happy encounter with the yellow metal, we can only conjecture about those persons, who at various places and at different times first came upon native gold. Experts of fossil study have observed that bits of natural gold were found in Spanish caves used by the Paleolithic Man about 40,000 B.C. Consequently, it is not surprising that historical sources cannot agree on the precise date that gold was first used. One states that gold's recorded discovery occurred circa 6000 B.C. Another mentions that the pharaohs and temple priests used the relic metal for adornment in ancient Egypt circa 3000 B.C. However, it is curious to note that the early Egyptian's medium of exchange was not gold but barley. The first use of gold as money in 700 B.C. is claimed by the citizens of the Kingdom of Lydia (western Turkey). Surely, you remember the kingdom of the famous fortune seeking King Croesus - circa 550 B.C.
Uses of gold
Gold has been prized by people since the earliest times for making statues and icons and also for jewelry to adorn their bodies. Intricately sculptured art objects and adornment jewelry have been uncovered in the Sumerian royal Tombs in southern Iraq and the tombs of Egyptian kings. Significant buildings and religious temples and statues have been covered with thinly beaten sheets of gold. Due to its rarity, gold has long been considered a symbol of the wealth and power of its possessor.
In 2001, it was estimated that 2870 tons of gold were produced worldwide. About 80 percent of that gold production was used to make jewelry, the majority of which was sold in India, Europe and the United States of America. Gold jewelry is universally popular, loved for its lustrous yellow color and untarnishing character. In many Asian countries, such as India, Thailand, and China, gold is important to religious ceremonies and social occasions, such as the Chinese New Year and Hindu marriages in India.