Who discovered gold?

The human body is composed of many elements, including Gold in trace amounts. According the technical treatise, The Elements Third Edition, written by John While there is no clear cut answer to this question, gold has been in use by humans as far back as the Chalcolithic or Bronze Age. Early artisans of the time period used gold to fashion jewelry and other adornments. Golden artifacts have been found in the Balkans that predate the Christian Era by four millennia.

Throughout history, gold has had a rich history that has taken it through ancient Egypt, Greece, Rome and Africa. It has long been a part of the symbolism of these cultures and is used dominantly in their artifacts and adornments. In 2600 BC, the ancient king Tushratta of Mitanni claimed that gold in Egypt was more plentiful than dirt, perhaps the first reference to the modern phrase "streets paved with gold".

While we have no scientific proof of the claimed abundance of Egyptian gold during that time, there have been archaeological finds that seem to add some credibility to the claim, including the earliest known map, the Turin Papyrus Map. This map outlined the structure of an early gold mining facility and the local geography of a region in Nubia.

The Greek geographer, Strabo, shared the ancient methods of refining and extracting the gold from ore, including a smelting process called "Fire-Sitting". It is also believed that the Greek legend of the Golden Fleece that was pursued by Jason and the Argonauts may have referred to a practice of using fleece to trap gold dust in placer deposits, an early form of screening for gold.

The Romans were the first to develop wide spread gold mining methods, including hydraulic mining. Their quest for gold led the ancient Roman empire to expand throughout most of the known world.

source: gold-traders.co.uk

How much gold is found in the human body?

The human body is composed of many elements, including Gold in trace amounts. According the technical treatise, The Elements Third Edition, written by John Emsley and published by the Clarendon Press, Oxford in 1998, the average person's body weighing 70 kilograms would contain a total mass of 0.2 milligrams of gold. The volume of this gold in purified form would be 10 nanoliters. If this refined gold were formed into a solid cube of purified gold, the measurement of each side of the cube would be 0.22 millimeters.

By comparison, the human body contains 43 kilograms of oxygen, the most abundant element in the earth, as well as the human body. Other elements found in the human body include 16 kilograms of carbon and 7 kilograms of hydrogen.

While the role of gold in the physiological processes of the human body was unknown for many years, it has recently been determined that gold plays a role in both the health and maintenance of the joints, as well as being a key element in the transmittal of electrical signals throughout the body. Of interesting note, the human body contains 1.0 gram of Silicon. This element is commonly found in the presence of gold in nature and its metabolic function is currently unknown.

source: gold-traders.co.uk

How is gold mined?

Gold mining methods are divided into four basic categories; placer mining, hard rock mining, byproduct mining and by processing Gold ore. Each of these categories has it's own unique methods of extracting the gold from the surrounding materials.

In placer mining, the gold is retrieved by metal detecting, panning, cradling, sluicing and dredging. Using gravity and water to separate the dense gold from the other materials that surround it, this is the most common gold mining category for amateur gold hunters.

Hard rock mining is the process of using open pit or underground mining tunnels to retrieve the gold from the rock . This method of gold mining is responsible for recovering most of the worlds gold supply.

Byproduct mining is related to hard rock mining in that open pit or underground mining tunnels are used. In byproduct mining, gold is a secondary find. The main purpose of the mining operation is the recovery of Copper, sand, gravel or other products but significant quantities of Gold exist to make byproduct mining a profitable venture. An example of this kind of mining would be the Grasberg mine is Papua, Indonesia, which was developed for extracting Copper from the earth. Though Gold is not the primary product, this mine produces more Gold than any other mine in the world.

The final category of gold mining is the processing of Gold ore. This method is largely becoming deprecated as the yield of Gold is often very low and the environmental impact and costs of the operation are substantial. The Gold ore is finely crushed rock or earth containing trace amounts of Gold which are extracted using a chemical process. The most commonly used chemical for this process is Cyanide.

source: gold-traders.co.uk

How did gold get its name?

Actually, gold is not the true name of this rare yellow metal although it is the commonly accepted name in use today. Almost every culture has had some experience with gold and there have been many names for this precious metal. The term "Gold" as we know it today, actually derives from Old English and Germanic origins.

The German Gothic language expressed gold with the word gulþa which later evolved into geolu in the Old English language. Geolu is translated to mean "yellow", thus naming the metal for it's most dominant characteristic; its golden yellow colour. In the twelfth century, Middle English brought another evolution to the word and our modern word, gold, came into existence.

The chemical symbol for Gold on the periodic table of elements is AU. This symbol is a tribute to the Latin word, aurum, loosely translated "glowing dawn" which was used to describe gold in Ancient Rome. The Ancient Romans were not the first civilization to encounter gold but they did invent improvements on the way gold was mined and extracted, thus increasing the availability of gold throughout their empire. Many of these improved methods invented by the Ancient Romans have stood the test of time and are still in use by gold miners today.

source: gold-traders.co.uk

When did the gold standard end?

The end of the United States Gold Standard began in 1933 when President Franklin D.Roosevelt declared private ownership of gold to be illegal, except in the case of jewelry. The Bretton Woods System, however, allowed foreign governments to continue to sell their gold to the United States Treasury at a price of $35 per troy ounce from it's inception in 1946 until President Richard Nixon ended the program in 1971, thus enabling gold to be traded at fluctuating market prices rather than the fixed price of $35 per troy ounce. This marked the end of the Gold Standard on a global level as no major economic system has employed the Gold Standard since that time.

Since the end of the Gold Standard in 1971, the United States has operated on a fiat currency, which is not backed by any precious metal or other commodity. This form of commerce allows for fluctuations in the global currency market that were not possible under the Gold Standard. Since the Gold Standard established a set amount of gold that could be purchased with a country's currency, it also set the value of that currency. By ending the Gold Standard, it opened the way for free markets.

source: gold-traders.co.uk

Does gold back the American dollar?

The American Dollar has a history that goes well back before the United States of America declared its independence from British rule. At the time of the American Dollar's inception and approval by the Congress in 1786, it was merely a symbolic act and no actual coins or bills were created until the signing of the Coinage Act of 1792, when the dollar was produced in coins rather than the paper money that we know today. At that time, the American Dollar coin represented 24.75 grains of gold and the dollar coins were composed of silver.

In 1900, the United States government moved their money to the Gold Standard, which meant that all money being used in the country was backed by a certain amount of gold that was held in the Federal Repository. At that time, the value of one dollar was set as equal and redeemable to the amount of 23.22 grains of gold.

In the years that followed, the Gold Standard was suspended and reinstated several times until 1963, when the United States followed the example of most other nations of the world in making their money a fiat currency, one that is not directly backed by any physical amount of gold or other precious metals.

source: gold-traders.co.uk

Where is gold found on earth?

Gold can be found on nearly every continent of the earth. It also exists in trace amounts in sea water and in the human body. Despite the fact that gold can be found almost everywhere, there is very little gold in comparison to other elements on earth. In fact, if all the gold ever discovered were collected and melted down and formed into one cube, it would measure just 20 meters on each side.
The largest known deposits of gold appear on two continents, Africa and India. In these two regions, South Africa has the largest concentration of gold with the town of Johannesburg being built over the worlds largest gold deposit. India is home to the worlds second deepest underground gold mine, the Champion Reef Mine, which is located on the Kolar region of India. While the Kolar gold fields have been closed for several years due to diminishing returns on the investment, this area of India is still thought to contain very rich deposits of gold. The Indian nation also takes credit for being the world's largest consumer of gold and gold products.
As a producer of gold in the last two centuries, the North American continent has become a source that may rival these other continents. With deposits of gold being found in the United States, Canada and Mexico, the North American continent is developing as a gold producing continent.

source: gold-traders.co.uk

Where is gold found in the world?

There are many places were finding gold is a common occurrence. There are two categories for gold found in nature. The first is primary and the other is secondary. Primary gold is often what is found in rock formations, which ultimately become mines if there is a substantial amount of gold. For these types of gold, it is highly likely that the gold will be found alongside other valuable minerals, like quartz and silver. Many mining companies that sell gold from their mining efforts will also sell the other minerals as well.

Secondary gold is found in small waterways that have run through these rock and mineral formations. When the current is strong enough for streams, rivers and creeks to accomplish it, the water will carry pieces of gold, often referred to as small nuggets or flakes, down through the path. As the gold is carried from the formation down the waterway, pieces settle on the beds or floors and eventually get covered in dirt and sand. While it is a little uncommon, some people have found rather large nuggets of gold panning these waterways.

Currently, the world’s largest source of gold is located in the Witwatersrand basin. This area in South Africa has provided a large amount of the world’s gold. It is also believed that there is still about 40% of the basin that has yet to be mined and still holds much more gold.

source: gold-traders.co.uk

When did the Gold Rush end?

One of the most monumental events in the history of the United States was the Californian Gold Rush. It played a huge impact on populations in California and the surrounding areas. It was the discovery of gold by James Marshall in Coloma in 1848 that started the whole thing. It wasn’t long before word of the discovery had traveled to lands across the whole world. People began traveling to California in search of the gold and the riches that it could bring. Approximate numbers showed that about 150,000 people traveled to California by boat, while 150,000 more people traveled across the land. The sudden growth from prospectors and their families caused small towns to grow, like San Francisco. It also contributed to the addition of more schools, churches, and roads. The Gold Rush, and the increase in population density, directly led to California’s admittance into the nation as a free state.

In the beginning the gold was mainly gathered from local small waterways through a technique called panning, which is the use of a sifter pan to filter out the dirt and small particles while the gold is left in the pan. By the end of the Gold Rush in 1855, more complicated methods for gathering the gold had been invented, and these methods included equipment for mining the gold from the surrounding underground rock formations.

source: gold-traders.co.uk

What year was gold discovered in California?

The start of the California Gold Rush began with the discovery of gold in 1848. On January 24 of that year, James Marshall discovered gold at Sutter's Mill in Coloma, California while working for John Sutter, an entrepreneur who had headed out west to establish himself in the mercantile trade. The discovery was made entirely by accident. Mr. Marshall was cleaning up around the mill and discovered the gold in the tailrace of the mill.

James Marshall recognized the gold for what it was but being an honest man and loyal to his employer and business partner, he went to share the secret privately with Mr. Sutter, who asked him to keep the information of the find confidential for fear that it would bring prospectors to the area and destroy his dreams of building a business in the area.

The two men agreed that the gold should be kept secret but, as with all secrets, the story eventually got out and the California Gold Rush began. As John Sutter had predicted, his business enterprise was ruined by the gold rush as his workforce deserted him to seek their wealth in gold prospecting and his cattle and other goods were pillaged by the new settlers who came seeking their fortunes.

source: gold-traders.co.uk

How to Buy Gold

Gold is often sold to the investor in troy ounces or pennyweights. It can be purchased in many ways with the most common investor choice being online gold trading boards. In most cases, the investor using the online gold trading boards will never actually see the gold they are purchasing. Rather, they are buying shares of the gold through the exchange, which can offer investor pricing by making it's purchases in larger quantities.

Another option for buying gold is the purchase of gold coins, bullion or scrap gold, either online through auction sites or locally through coin dealers and jewelers who offer investment grade gold for sale.

When purchasing gold, it is important to have a clear knowledge of both the market and the metal itself because a few points difference in the purity of the gold can alter its value a great deal. In addition, many charlatans will attempt to pass off lower quality gold or gold plated items as real gold so you should always know the reputation of your seller before you purchase any gold item as an investment. When purchasing gold from online individuals and businesses, always pay for your items using a trusted checkout system that offers buyer protection in case the item is not as they have described it.

source: gold-traders.co.uk

What is gold used for?

The precious metal known as gold has seen many uses over the centuries. While the most common usages have traditionally been the creation of coins, bullion and jewellery, gold has also seen a variety of less typical uses.

In some far eastern cultures, gold leaf, flakes and dust are eaten for supposed health benefits and as a show of wealth. It is to be noted that ingesting elemental gold in this manner has not been proven to offer any significant impact on ones health but large dosages can become toxic.

Gold is also used for modern medicine in it's salt or radioisotope forms. These forms of gold can be used by the body when taken orally or via injection as a medical treatment to alleviate severe cases of rheumatoid arthritis, tuberculosis and other conditions. The gold isotope, gold-198, is also used for the treatment of cancer.

Gold is often combined with other metals for use in modern dentistry. The gold used for dental work, including fillings and crowns, is predominantly white gold or gold alloys. When white gold is used, the purity of the gold is usually 15 carat or higher.

Due to its special conductive properties, gold has become a popular choice in the fields of industry and electronics. Almost all high tech appliances, from computers to mobile phones, have some gold content. In addition, the fact that electromagnetic radiation is reflected by gold has made it a popular choice in protecting expensive equipment or personnel that may be exposed to infrared light or other high level electromagnetic radiation sources.

source: gold-traders.co.uk

What Is Gold Sputtering?

old sputtering is a process for creating a very thin layer of gold on a surface. Sputtering is also available with other metals, and is most commonly seen in the electronics industry and the sciences. This technique requires a special device and controlled conditions for best results, along with discs of gold known as “targets” to provide a source of metal for deposition. Manufacturers produce sputtering equipment and private firms can perform this process by request.

In gold sputtering, the technician excites the atoms on the target, usually by bombarding them with energy. The target starts to eject atoms, and they land on a substrate. People may coat circuit panels, metals, and other objects using this process. The layer of gold will be very even and also very fine. The technician can control where and how the metal deposits, creating custom patterns to meet specific needs. Technicians can also use sputter etching, where the target releases etching material to lift parts of a coating.

For processes like scanning electron microscopy, scientists use gold sputtering to prepare specimens so they will be visible under the microscope. Circuit boards may require fine layers of gold on specific areas, and other electronics components may require similar treatment. This metal has a number of properties of interest, including good conductivity, making it a very suitable metal coating. Sputter deposition can also be used for activities like adding film to window glass for energy efficiency.

People use very pure sources for gold sputtering, and can order targets from manufacturers or prepare them by hand. Technicians usually use a clean room for the process because they want to avoid impurities in the gold. Any problems with the deposition can make an item useless, and impurities may not be readily apparent because they often occur on a microscopic level. Something like a fleck of dust, for example, could skew the readings on a scanning electron microscope and force the scientist to start all over again.

This process differs from gilding and other methods people use to apply decorative metal coatings. Jewelers may employ gold coatings on cores of other metals to lower production costs or get the look of gold and the strength of a different metal. They do not use gold sputtering technology and the tolerances in terms of impurities are much higher, with a focus on visual defects rather than issues so small that they can only be seen on a very high powered microscope.

source: wisegeek.com

What is a Gold Fund?

Investors who wish to make gold part of their portfolio can do so in three ways. First, they can purchase actual bullion or gold coins. Aside from buying the physical metal, stocks of gold companies are another popular option, as are gold funds. A gold fund can be either a gold mutual fund or a gold exchange-traded fund (ETF). A gold fund can be a very sound investment, especially in times of economic uncertainty, since gold has traditionally been used as a hedge against inflation and other forms of financial risk.

Gold funds are used commonly by gold investors for many reasons. One of the main reasons is that gold, as well as other precious metals, can be quite volatile in terms of price. Also, the price movements of gold may or may not be correlated with general market conditions at any given time, making them difficult to predict with accuracy. Logistical issues also come into play for those who purchase the actual metal, such as storage or safe-keeping. This can be stressful by itself because of the time and considerations involved in finding a good place to store precious metals.

Individual stocks from companies which mine, distribute, and process gold are subject to as much volatility as any other stocks, as well as to general market conditions. A gold fund, particularly a gold mutual fund, is a good alternative to these types of risk, since it would include many stocks and would be diversified in such a way as to minimize risk while still offering the potential for profit. The management of a gold fund would also be done by professionals. These considerations make gold mutual funds a relatively safe way to include gold in a portfolio.

A gold ETF is an even safer type of gold fund. With a gold ETF, investors simply purchase shares in a fund which tracks only the price of gold, rather than gold stocks. Gold ETFs eliminate any storage-related concerns, and have what investors may see as a distinct advantage over some gold mutual funds.

Specifically, some gold mutual funds use options and other forms of leverage in an attempt to enhance returns. It is not uncommon for mutual funds to be managed in this way. Even though it is composed of a group of many stocks, a mutual fund may take on a life of its own, because its price, like that of an individual stock, fluctuates based on how many shares of the fund are being bought and sold.

source: wisegeek.com

What Is the California Gold Rush?

The California Gold Rush was a major event in California history in which hundreds of thousands of people from all over the world descended upon the United States territory to seek their fortunes after newspapers issued reports that gold had been found in the California hills. The Gold Rush certainly made California's fortune, ensuring that the territory would be accepted as a state in 1850 and establishing new communities up and down the mineral rich state in addition to attracting an influx of migrants who contributed immensely to the state's political, social, and cultural history.

Events started in 1848, when John Marshall was building a mill and discovered some gold nuggets. His discovery triggered a media frenzy, with newspapers all over the world reporting the event, along with exaggerated claims that gold nuggets could be picked up right off the ground. The ensuing California Gold Rush brought an estimated 300,000-500,000 migrants who viewed the gold discoveries as their window to opportunity.

The participants in the California Gold Rush came to be known as the forty-niners, in reference to 1849, when gold frenzy peaked. Life for these migrants was extremely difficult. Although some managed to find gold deposits, stake a claim, and make a fair amount of money, many more struggled to pick up scraps from bigger mining operators, and gold became increasingly hard to find as surface deposits were exhausted. California was also essentially lawless, and it could be a very dangerous place to live and work.

The natural environment suffered during the California Gold Rush, as people used very unscrupulous techniques to access desirable deposits of gold, and acts of violence were extremely common in many mining communities. The small settlement of San Francisco ballooned into a large city, with accompanying explosions of violence, and it also found itself becoming an economic and cultural hub, as much of the gold shipped from California went through San Francisco, and the goods sold to the miners came into the same port. Sacramento also became a major power player, eventually developing into the state capital, because it was so close to the gold fields.

By 1853, only advanced mining techniques could be used to extract gold. Many of the forty-niners were left destitute. Some returned to the regions they came from, while others attempted to stick it out in the new state, in some cases establishing family dynasties who went on to become major players in California. One population in California suffered more than others as a result of the California Gold Rush: Chinese immigrants were not legally allowed to hold property, and many of them were exploited for their labor by unscrupulous miners and companies. Despite this, the population of Chinese in California grew exponentially during the Gold Rush, and legacies of this can be seen today in California's large Chinatowns in Oakland, San Francisco, and Los Angeles.

source: wisegeek.com

What Is Gold Fixing?

old fixing is a practice which determines the global price of gold. Although it is officially only used to set the price of gold for members of the London Bullion Market Association (LBMA), it is used to establish a base price which is used for gold all over the world. As a result, people who are active on the gold market usually eagerly await the outcome of the twice-daily gold fixing conferences.

This practice started in 1919, when there was a desire to get the gold market in London active as the city and the world recovered from the First World War. With the exception of a brief period of suspension during the Second World War, gold fixing has been occurring ever since, although the mechanics of the event have changed considerably from their early 20th century origins.

When members of the London Bullion Market Association first began meeting to determine gold prices, they met in person in the offices of one of the member institutions. Today, gold fixing is accomplished by teleconference. Five members of the LBMA are involved, operating as the London Gold Market Fixing Limited. During the conference call, the chair first throws out a price, usually close to the current spot price for gold, and members respond to push the price up or down depending on the orders they need to fill.

Gold fixing is designed to balance supply and demand while reaching a common price for orders. It is done at 10:30 AM and again at 3:00 PM. In addition to being involved in gold fixing, the LBMA is also involved in determining the price of silver, another precious metal which is widely bought and sold on the global market. The organization's tremendous influence on pricing has not gone unnoticed, with some people questioning whether or not gold fixing is entirely fair, or whether it should have the impact that it does.

People who are curious about the most recent price can find it at the LBMA's website. Results of gold fixing conferences are also often published on financial websites, especially if they focus on trading of gold and silver, and can be obtained by calling financial institutions.

Despite the huge influence it has on the market, the LBMA is not very accessible to members of the general public. Member institutions handle massive large-scale buy and sell orders for gold primarily on behalf of other financial institutions. Few individual investors trade in the scale handled by LBMA members.


source: wisegeek.com

What Is Gold Therapy?

Gold therapy is generally recognized as the process of treating the body with gold, through compounds known as gold salts, to help deal with specific conditions such as rheumatoid arthritis. Aurotherapy and chrysotherapy are other names for this kind of process. Gold therapy is built on a long human tradition of revering and prizing this precious metal.

As one of the heaviest known elements, gold has a lot of intrinsic value on world markets. Its popular use as currency in prior times demonstrates the collective value that gold has had, and continues to have, for the human community. With gold therapy, even more value is added to this element as a potential solution for healing.

The main potential for gold salt applications, according to some scientists and medical experts, is in limiting inflammation in the joints. Gold therapy is often a considered treatment for juvenile forms of arthritis. It is sometimes valuable in treating patients who would not respond favorably to more complex chemical solutions.

Gold supplements can be injected into the body or administered through oral supplements. Some forms may require testing after application to see that the gold compound was properly received. Results from these compounds, according to medical resources, can take up to six months.

Forms of gold therapy include a potential for a range of side effects. Some patients can experience loss of appetite or nausea. Others experience hair thinning and loose stools. Skin rashes, kidney problems, along with some other side effects have also been reported.

As gold based compounds continue to remain on the market for treating the conditions described above, scientists are still looking at widening the range of applications of gold based drugs. Some report that gold compounds have, in preliminary trials, showed potential for reacting to some types of cancer cells. Other studies indicate that a gold solution added to existing drug treatments might be able to help with treating resistant strains of malaria.

Other more obscure uses for gold are also being studied for their potential in healing sufferers of chronic disease. In Kanzius RF Therapy, a combination of gold particles and RF energy is used to heat and destroy cancer cells. This kind of procedure is still developing with a varied funding base according to the Kanzius Cancer Research Foundation. Although it is still relatively uncommon to see medical experts treating patients with gold, this kind of practice may hold some potential for expanding the way natural remedies are used side by side with chemically produced medications.

source: wisegeek.com

What Is Aurum Metallicum?

A home herbal remedy known to help treat depression, aurum metallicum is a form of the element gold. The remedy is used to aid in treating a variety of other health complaints, including osteoporosis and joint pain. The homeopathic medicine may also be used for micro-nutritional needs.

Made from the element gold, the remedy can also be found in seawater, volcanic soil, or certain fruits and vegetables. Aurum metallicum is most commonly used to treat hepatitis, osteoporosis, rheumatism, frequent headaches, arthritis, and general pain of the bones or joints. Another common ailment the treatment is useful for curing is mercury poisoning. The element may be used to treat alcoholism and other conditions requiring withdrawal support as well.

Heart issues can be treated with aurum metallicum. These may include arrhythmia, angina, and other conditions. Weakened hearts are said to be made stronger by the remedy. It may also make hearts more durable, decreasing the likelihood of future heart attacks or other problems. High blood pressure is said to be lowered, if not completely normalized, by taking the compound regularly.

Mental health issues and nerve disorders may be aided with the remedy. Chronic fatigue syndrome, depression, anorexia nervosa, hypertension, manic depression, postpartum depression, and anxiety are some of these. Sleep issues, such as insomnia and nightmares, may also be helped by the golden cure. Hormonal imbalances, particularly those involving the pituitary gland, can be remedied by aurum metallicum.

Some homeopaths maintain that aurum metallicum strengthens the immune system. A belief in the element's ability to cure infertility is also held by many homeopathic practitioners. Other conditions the metal is said to either aid or cure include mastoiditis, hallucinations, connective tissue disease, sinusitis, endocarditis, uterine fibroids, and undescended testes.

Used as a micro-nutrient, the homeopathic medicine can provide various common vitamin and mineral functions. It may help prevent disease of the eye. It can enhance overall eye health by restoring weak eyesight. Swollen glands, secondary syphilis, and and congestion may also be alleviated with gold. In ancient times, the remedy was used as an anti-scrofulous and anti-venereal treatment.

Other names for the medicine include aurum or aurum met. Aurum metallicum is available in both liquid and pellet form. Liquid doses are usually sold in quarter-ounce (seven milliliter) to four ounce (118 milliliter) vials. Pellets are generally able to be dissolved on the tongue. A practicing medical professional should be consulted prior to using this remedy.

source: wisegeek.com

What Is a Gold Certificate?

A gold certificate is a certificate which is held by someone in lieu of holding actual gold. Gold investors want to be able to invest in large volume, and handling and securing gold in that amount could quickly grow extremely cumbersome, for obvious reasons. As a result, many investors prefer to use gold certificates, leaving the bullion secured in a banking facility and buying and selling certificates instead.

Individual banks which keep stores of gold and sell to investors issue their own gold certificates. Once an investor has a gold certificate, she or he can sell it or trade it with another investor. This is usually done in large amounts through exchanges set up specifically for people who trade in gold. Entry into the gold market can be a costly endeavor, as new investors may learn to their surprise. The gold which corresponds with each gold certificate is kept in highly secured environments; one advantage to using gold certificates is the knowledge that the gold is highly unlikely to go anywhere, because banks take their vault security very seriously.

The value of gold is under constant fluctuation. Daily rates are usually quoted in financial publications and may be available from some banks. In addition, exchanges which deal in gold post the current rates so that people know which direction the market is moving in. Traders in gold can move their investments as needed to change their position as the market shifts and using a gold certificate to represent gold facilitates rapid trading.

People also refer to “gold certificates” in the form of historic certificates issued by the United States Government. Between 1863 and 1933, gold certificates redeemable for gold were issued. These certificates were used primarily by banks for interbank transfers, for much the same reason that investors use gold certificates today: to avoid the expense and hassle of handling large amounts of gold.


source: wisegeek.com

How Do I Choose the Best Gold Index Fund?

Investors who want to choose the best gold index fund for their portfolio should consider technical aspects of one of these exchange traded funds, as well as how a specific gold index fund can work with a particular investment strategy or philosophy. There are many different kinds of gold index funds out there for individuals who want to trade in this popular heavy metal in a more sophisticated way. To find the best ones for you, look carefully at the prospectus, and match what’s involved in the index fund with what you want to do to diversify your portfolio. The best gold index fund options are generally “no-load” funds that don’t hit investors with redemption fees or other costs when it’s time to sell. Look for low annual fees for an index fund around gold, and understand any fees or commissions, as well as tax liabilities, that will come out of your total gain or yield.



Another thing investors should think about with a gold index fund is how it relates to their short or long-term goals. Some like to participate in a “buy and hold” strategy where going long on gold yields eventual results when speculators or others bid up the price of gold fund, but others can effectively “short” gold using complex gold ETFs that offer a kind of inverse position to those “cheerleader” funds that expect gold to go through the roof at any given time. Pick the gold index fund that matches your hunch on gold.


For those who are considering gold index funds, such as gold ETFs, it’s also important to look at what’s actually involved in the fund. Since these funds, as index funds, will involve various equities, look at whether any of the involved equities include a “numismatic” gold value as opposed to a “raw gold value.” The numismatic value of gold relates to specifically minted coins and other collectibles, where a raw gold fund focuses only on the value of the gold commodity in general. Investors may also want to evaluate whether parts of the index fund include gold mining operations, which may be particularly poised for gains, or just a “warehouse” gold strategy.


When you have an idea of the gold index funds you want, look to see if your specific online brokerage will provide you with access. Many of the most popular gold funds are accessible through the major financial brokerage firms, but check to make sure you can access the ones that will help you diversify. Also look at tracking ability, for example, capacity for intra-day trading and use of stop losses or other tools to effectively manage your gold investment.

source: wisegeek.com

Gold

Gold is a metallic element with the atomic number 79 and the symbol Au. While the namegold comes from an Old English word meaning yellow, the symbol comes from the Latinaurum, which means “shining dawn.” On the periodic table of elements, gold is found in Group 11, along with silver, copper, and roentgenium, and in Period 6 between platinum and mercury. It is referred to as a “transition metal” and is the most malleable, ductile metal. Described as yellow, gold is one of the so-called precious metals, along with silver. Known from ancient times — along with mercury, sulfur, copper, silver, lead, and tin — gold was used as early as 6000 B.C. Early use included for jewelry, including bracelets and rings, as well as ornamentation. Its malleability means that its early use in any practical items was impossible, so it was restricted to decoration. The civilizations that employed it included the Egyptians, the Greeks, the Mesopotamians, and the Romans. Gold is found in both lode deposits and placer deposits, and is naturally uncombined. While the largest deposit is to be found in South Africa, deposits of note are also located in Australia, the former Soviet Union, and a number of western states of the United States, including Arizona in the Southwest; California, Montana, and Washington in the Pacific Northwest; and South Dakota in the Midwest. Although many people many know gold for its use in jewelry — which is how about 65% of it is used — it has a number of other uses. About 25% is used in industrial applications in ceramics, electrical, and electronics applications. A specialized use is in the powder called gold tin purple, gold tin precipitate, or purple of Cassius, which is used for tinting enamels and manufacturing a special type of glass called ruby glass. Ruby glass is used on the windows of office buildings as well as on mirrors that are used in space.

 source: wisegeek.org