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I INTRODUCTION
Gold has been highly valued for thousands of years, not only because of
its beauty and resistance to corrosion, but also because it is easier to
work than all other metals. In addition, gold was easier to obtain in pure
form than the other metals. Because of its relative rarity, gold became
used as currency and as a basis for international monetary transactions.
Gold is extracted from gravel or from crushed rock by dissolving it either
in mercury (the amalgam process) or in cyanide solutions (the cyanide
process). The gold is recovered from the solution and melted into ingots.
Gold-bearing rock with as little as 1 part of gold to 300,000 parts of
worthless material can be worked at a profit. The rarest form of
gold is a nugget. The largest known nugget, the Welcome Stranger, weighing
about 70.8 kg (about 156 lb), was turned up accidentally, in Victoria,
Australia, in 1869. The unit used in weighing gold is the troy
ounce; 1 troy ounce is equivalent to 31.1 grams.
II PROPERTIES
Pure gold is the most malleable and ductile of all the metals. It can
easily be beaten or hammered to a thickness of 0.000013 cm (0.000005 in),
and 29 g (1.02 oz) could be drawn into a wire 100 km (62 mi) long. It is
one of the softest metals (hardness, 2.5 to 3) and is a good conductor of
heat and electricity. Gold is bright yellow and has a high luster. Finely
divided gold, like other metallic powders, is black; colloidally suspended
gold ranges in color from ruby red to purple (see Colloid).
Gold is extremely inactive. It is
unaffected by air, heat, moisture, and most solvents. It will, however,
dissolve in aqueous mixtures containing various halogens such as
chlorides, bromides, or some iodides. It will also dissolve in some
oxidizing mixtures, such as cyanide ion with oxygen, and in aqua regia, a
mixture of hydrochloric and nitric acids. The chlorides and cyanides are
important compounds of gold.
Gold melts at about 1064° C (about 1947°
F), boils at about 2808° C (about 5086° F), and has a specific gravity of
19.3; its atomic weight is 196.97.
III MARKETS
Gold can be purchased in many forms
including modern gold bullion coins and bars. Investors can make purchases
in virtually any amount, ranging from a fraction of an ounce upward. The
weight and purity of gold coins are precisely controlled and standardized
by internationally-recognized refiners and official government mints,
allowing investors to buy with confidence and sell with ease. .
IV INVESTING
People hold gold for safety, security, and privacy. When you buy the
right gold, it's easy to buy, sell, store and transport in a crisis.
• Gold is a long-term storehouse of
value. Historically, gold acts as a reliable “store of value” because it
fulfills all the functions of money.
• Gold is portable and divisible, gold is easy to store in an emergency
and far more reliable than paper money in a crisis..
• Gold is indestructible, relatively scarce, and cannot be “manufactured.”
Gold's value cannot be inflated away like paper currency.
• Gold bullion and gold coins are highly liquid. Gold is recognizable and
acceptable as a form of payment which makes it easy to buy, sell or trade
worldwide.
• Gold Keeps Up With Inflation. In recent years, gold prices have traded
down because inflation was low. Historically, gold's best friend has been
inflation. Economic cycles are permanent facts of life and one of the best
reasons to acquire gold today. Even though gold prices fluctuate
over the long term, gold has maintained its long-term value.
In contrast, most commodities and the U.S. dollar have declined in value
due to inflation. This is why gold bullion is often purchased as a hedge
against inflation and currency fluctuations. Many investors around the
world see gold as "the ultimate asset” – an important and secure part of
their investment portfolio.
Gold has kept up with inflation during the past 200 years. |
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