GOLD BAR DESCRIPTION

Gold bar description.

gold bar, also called gold bullion or a gold ingot, is a quantity of refined metallic gold of any shape that is made by a bar producer meeting standard conditions of manufacture, labeling, and record keeping. Larger gold bars that are produced by pouring the molten metal into molds are called ingots. Smaller bars may be manufactured by minting or stamping from appropriately rolled gold sheets. The standard gold bar held as gold reserves by central banks and traded among bullion dealers is the 400-troy-ounce (12.4 kg or 438.9 ounces) Good Delivery gold bar. The kilobar, which is 1000 grams in mass (32.15 troy ounces), is the bar that is more manageable and is used extensively for trading and investment. The premium on these bars when traded is very low over the spot value of the gold, making it ideal for small transfers between banks and traders. Most kilobars are flat, although some investors, particularly in Europe, prefer the brick shape. Asian markets differ in that they prefer gram gold bars as opposed to Troy ounce measurements. Popular sizes in the Asian region include 10 grams, 100 grams and 1,000 gram bars.

Types

A minted bar (left) and a cast bar (right)

Based upon how they are manufactured, gold bars are categorized as having been cast or minted, with both differing in their appearance and price. Cast bars are created in a similar method to that of ingots, whereby molten gold is poured into a bar-shaped mold and left to solidify. This process often leads to malformed bars with uneven surfaces which, although imperfect, make each bar unique and easier to identify. Cast bars are also cheaper than minted bars, because they are quicker to produce and require less handling.

Minted bars are made from gold blanks that have been cut to a required dimension from a flat piece of gold. These are identified by having smooth and even surfaces.

gold bar description

In contrast to cast bars (which are often handled directly), minted bars are generally sealed in protective packaging to prevent tampering and keep them from becoming damaged. A hologram security feature known as a Kinegram can also be inserted into the packaging. Bars that contain these are called Kinebars

Standard bar weights

Gold prices (US$ per troy ounce), in nominal US$ and inflation adjusted US$ from 1914 onward

Gold is measured in troy ounces, often simply referred to as ounces when the reference to gold is evident. One troy ounce is equivalent to 31.1034768 grams. Commonly encountered in daily life is the avoirdupois ounce, an Imperial weight in countries still using British weights and measures or United States customary units. The avoirdupois ounce is lighter than the troy ounce; one avoirdupois ounce equals 28.349523125 grams.[5]

The super-size is worth more than the standard gold bar held and traded internationally by central banks and bulliondealers is the Good Delivery bar with a 400 oz (troy-ounce) (12.4 kg or 438.9 ounces) nominal weight. However, its precise gold content is permitted to vary between 350 oz and 430 oz. The minimum purity required is 99.5% gold. These bars must be stored in recognized and secure gold bullion vaults to maintain their quality status of Good Delivery. The recorded provenance of this bar assures integrity and maximum resale value.[6]

  • One tonne = 1000 kilograms = 32,150.746 troy ounces.
  • One kilogram = 1000 grams = 32.15074656 troy ounces.
  • One tola = 11.6638038 grams = 0.375 troy ounces.
  • One tael = 50 grams.
  • TT (ten tola) = 117 grams (3.75 oz)

Tola is a traditional Indian measure for the weight of gold and prevalent to this day. Many international gold manufacturers supply tola bars of 999.96 purity

GOLD COIN DESCRIPTION

Gold coin description

From Wikipedia, the free encyclopedia

gold coins
gold coins for sale

Gold coins for sale in the Dubai Gold Souk

gold coin is a coin that is made mostly or entirely of gold. Most gold coins minted since 1800 are 90–92% gold (22 karat), while most of today’s gold bullion coins are pure gold, such as the BritanniaCanadian Maple Leaf, and American Buffalo. Alloyed gold coins, like the American Gold Eagle and South African Krugerrand, are typically 91.7% gold by weight, with the remainder being silver and copper.

Gold coin description

Traditionally (up to about the 1930s), gold coins have been circulation coins, including coin-like bracteates and dinars. Since recent decades, however, gold coins are mainly produced as bullion coins to investors and as commemorative coins to collectors. While modern gold coins are also legal tender, they are not observed in everyday financial transactions, as the metal value normally exceeds the nominal value. For example, the American Gold Eagle, given a denomination of 50 USD, has a metal value of more than $1,200 USD.

The gold reserves of central banks are dominated by gold bars, but gold coins may occasionally contribute.

Gold has been used as money for many reasons. It is fungible, with a low spread between the prices to buy and sell. Gold is also easily transportable, as it has a high value to weight ratio, compared to other commodities, such as silver. Gold can be re-coined, divided into smaller units, or re-melted into larger units such as gold bars, without destroying its metal value. The density of gold is higher than most other metals, making it difficult to pass counterfeits. Additionally, gold is extremely unreactive, hence it does not tarnish or corrode over time.

Collector coins

gold coin description
gold coin

20-crown gold coin from Norway. Introduced in 1875, it became part of the Scandinavian Monetary Union, which was based on a gold standardNorwegian gold reserves included tonnes of this and other coins, backing Norway’s paper money. The coin was designed for circulation: “124 Stk. 1 Kil. f. G.” means that 124 pieces gave one kilogramme of pure gold.

Many factors determine the value of a gold coin, such as its rarity, age, condition and the number originally minted. Most gold coins minted since the late 19th century are worth slightly more than spot price, but many are worth significantly more. Gold coins coveted by collectors include the AureusSolidus and Spur Ryal.

In July 2002, a very rare $20 1933 Double Eagle gold coin sold for a record $7,590,020 at Sotheby’s, making it by far the most valuable coin ever sold up to that time (a 1794 Flowing Hair Dollar sold for over $10 million in January 2013). In early 1933, more than 445,000 Double Eagle coins were struck by the U.S. Mint, but most of these were surrendered and melted down following Executive Order 6102. Only a few coins survived.

In 2007 the Royal Canadian Mint produced a 100 kilograms (220 lb) gold coin with a face value of $1,000,000, though the gold content was worth over $2 million at the time. It measures 50 centimetres (20 in) in diameter and is 3 centimetres (1.2 in) thick. It was intended as a one-off to promote a new line of Canadian Gold Maple Leaf coins, but after several interested buyers came forward the mint announced it would manufacture them as ordered and sell them for between $2.5 million and $3 million. As of May 3, 2007, there were five orders. One of these coins has been stolen when it was on exhibition at the Bode Museumin Berlin.

Austria had previously produced a 37 centimetres (15 in) diameter 31 kg Philharmonic gold coin with a face value of 100,000.

On October 4, 2007, David Albanese (president of Albanese Rare Coins) stated that a $10, 1804-dated eagle coin (made for President Andrew Jackson as a diplomatic gift) was sold to an anonymous private collector for $5 million.

In 2012 the Royal Canadian Mint produced the world first gold coin with a 0.11–0.14ct diamond. The Queen’s Diamond Jubilee coin has been crafted in 99.999% pure gold with a face value of $300. Gold coin description

Counterfeits

Gold coin description

Balance for checking the weight of gold coins.

For most of history, coins were valued based on the precious metal they contain. Whether a coin was actually made by the party as claimed was of secondary importance compared to whether it contains the correct amount of metal – that is, correct weight and fineness (purity). Genuine appearance was simply a convenient shortcut to avoid time-consuming tests in everyday transactions.

Gold is denser than almost all other metals, hence hard to fake. A determination of weight and volume is in many cases sufficient to spot forgeries. A coin that is not gold or below the expected fineness will either have the right size but will a lower than expected weight or it weighs right and will be somewhat larger. Most metals that are of similar or higher density than gold are similarly or more expensive, and were unknown in ancient times (notably the platinum group). During the 19th century platinum was cheaper than gold and was used for counterfeiting gold coins. These coins could be detected by acoustic properties. Only two relatively inexpensive substances are of similar density to gold: depleted uranium and tungsten. Depleted uranium is government-regulated, but tungsten is more commonly available and suited for counterfeiting.[15] Alloying gold with tungsten would not work for several reasons, but tungsten plated with a thin layer of gold is a common type of forgery.

Bullion coin counterfeits (of all types) used to be rare and fairly easy to detect when comparing their weights, colors and sizes to authentic pieces. This is because the cost of reproducing any given coin precisely can exceed the market value of the originals. However, since about 2015 counterfeit coins are “flooding the market at an astonishing rate” and “it’s gotten to the point where even people who deal with coins all the time may not be able to recognize a counterfeit coin right away” (American Numismatic Association (ANA), 2016). The coins consist mostly of tungsten plated thinly with gold, have the correct weight, correct or near-correct dimensions and are professionally produced in China.

The weight and dimensions of a coin of .999 fineness such as the Maple Leaf cannot be replicated precisely by a gold plated tungsten core, since tungsten has only 99.74% of the specific gravity of gold. However, forgeries of alloyed gold coins (such as American gold eagle or Krugerrand made from a crown gold alloy with 22 karats = .917 fineness) may have correct the correct weight and dimensions because of the lesser density of the alloy. Such forgeries can be detected testing the acoustic, electric resistance or magnetic properties. The latter method uses the fact that gold is weakly diamagnetic and tungsten is weakly paramagnetic. The effect is weak so that testing requires strong neodymium magnets and sensitive conditions (e.g., a gold coin hanging from 2 m long pendulum or placed on styrofoam floating on water), such tests can be performed without special equipment.[22] Forgeries using gold plated tungsten are also used in counterfeiting of gold bars. Gold coin description

Biting a coin to determine whether it is genuine or counterfeit is a widespread cliché depicted in many movies (see The Immigrant (1917 film)). While fine gold is softer than alloyed gold, and galvanized lead is softer, biting coins can only detect the crudest of forgeries and its widespread use is almost certainly a myth

SILVER COINS DESCRIPTION

Silver coins description

Silver coins are possibly the oldest mass-produced form of coinageSilver has been used as a coinage metal since the times of the Greeks; their silver drachmaswere popular trade coins. The ancient Persians used silver coins between 612-330 BC. Before 1797, British pennies were made of silver.

As with all collectible coins, many factors determine the value of a silver coin, such as its rarity, demand, condition and the number originally minted. Ancient silver coins coveted by collectors include the Denarius and Miliarense, while more recent collectible silver coins include the Morgan Dollar and the Spanish Milled Dollar.

Other than collector’s silver coins, silver bullion coins are popular among people who desire a “hedge” against currency inflation or store of value. Silver has an international currency symbol of XAG under ISO 4217.

The earliest coins in the world were minted in the kingdom of Lydia in Asia Minor around 600 BC. The coins of Lydia were made of electrum, which is a naturally occurring alloy of gold and silver, that was available within the territory of Lydia. The concept of coinage, i.e. stamped lumps of metal of a specified weight, quickly spread to adjacent regions, such as Aegina. In these neighbouring regions, inhabited by Greeks, coins were mostly made of silver. As Greek merchants traded with Greek communities (colonies) throughout the Mediterranean Sea, the Greek coinage concept soon spread through trade to the entire Mediterranean region. These early Greek silver coins were denominated in staters or drachmas and its fractions (obols).

More or less simultaneously with the development of the Lydian and Greek coinages, a coinage system was developed independently in China. The Chinese coins, however, were a different concept and they were made of bronze.

In the Mediterranean region, the silver and other precious metal coins were later supplemented with local bronze coinages, that served as small change, useful for transactions where small sums were involved.

The coins of the Greeks were issued by a great number of city states, and each coin carried an indication of its place of origin. The coinage systems were not entirely the same from one place to another. However, the so-called Attic standardCorinthian standardAiginetic standard and other standards defined the proper weight of each coin. Each of these standards were used in multiple places throughout the Mediterranean region.

In the 4th century BC, the Kingdom of Macedonia came to dominate the Greek world. The most powerful of their kings, Alexander the Great eventually launched an attack on the Kingdom of Persia, defeating and conquering it. Alexander’s Empire fell apart after his death in 323 BC, and the eastern mediterranean region and western Asia (previously Persian territory) were divided into a small number of kingdoms, replacing the city state as the principal unit of Greek government. Greek coins were now issued by kings, and only to a lesser extent by cities. Greek rulers were now minting coins as far away as Egypt and central Asia. The tetradrachm (four drachms) was a popular coin throughout the region. This era is referred to as the hellenistic era.

While much of the Greek world was being transformed into monarchies, the Romans were expanding their control throughout the Italian Peninsula. The Romans minted their first coins during the early 3rd century BC. The earliest coins were – like other coins in the region – silver drachms with a supplementary bronze coinage. They later reverted to the silver denarius as their principal coin. The denarius remained an important Roman coin until the Roman economy began to crumble. During the 3rd century AD, the antoninianus was minted in quantity. This was originally a “silver” coin with low silver content, but developed through stages of debasement (sometimes silver washed) to pure bronze coins.

Although many regions ruled by Hellenistic monarchs were brought under Roman control, this did not immediately lead to a unitary monetary system throughout the Mediterranean region. Local coinage traditions in the eastern regions prevailed, while the denarius dominated the western regions. The local Greek coinages are known as Greek Imperial coins.

Apart from the Greeks and the Romans, also other peoples in the Mediterranean region issued coins. These include the Phoenicians, the Carthaginians, the Jews, the Celts and various regions in the Iberian Peninsula and the Arab Peninsula. silver coins description

In regions to the East of the Roman Empire, that were formerly controlled by the Hellenistic Seleucids, the Parthians created a kingdom in Persia. The Parthians issued a relatively stable series of silver drachms and tetradrachms. After the Parthians were overthrown by the Sassanians in 226 AD, the new dynasty of Persia began the minting of their distinct thin, spread fabric silver drachms, that became a staple of their empire right up to the Arab conquest in the 7th century AD. silver coins description

Bullion coins

Various governments mint, or authorize the minting of, silver bullion coins with a nominal face value in the national currency. The face value is nominal because the value stated on the coin is much less than the value of the silver in the coin. The most common world silver bullion coins, preceded by minimum guaranteed purity, and ordered by their year of introduction:

Silver rounds silver coins description

Privately minted “silver rounds” or “generic silver rounds” are called “rounds” instead of “coins” because the US Mint and other government mints reserves the use of the word “coin” for Government Issued currency with a face value expressed in the national currency. The privately minted “rounds” usually have a set weight of 1 troy ounce of silver (31.103 grams of 99.9% silver), with the dimensions of 2.54 mm thick and 39 mm across. These carry all sorts of designs, from assayer/mine backed bullion to engravable gifts, automobiles, firearms, armed forces commemorative, and holidays. Unlike silver bullion coins, silver rounds carry no face value and are not considered legal tender. Similarly, both government and private sector mints issue silver bars for investors and collectors without a nominal face value.

SILVER BAR DESCRIPTION

silver bar description

Silver as an investment

silver bar description
From Wikipedia, the free encyclopedia
  

Silver may be used as an investment like other precious metals. It has been regarded as a form of money and store of value for more than 4,000 years, although it has lost its role as a legal tender in all developed countries since the end of the silver standard. Some countries mint bullion and collector coins, however, such as the American Silver Eagle with nominal face values.[1] In 2009, the main demand for silver was for industrial applications (40%), jewellerybullion coins, and exchange-traded products.[2][3] In 2011, the global silver reserves amounted to 530,000 tonnes.[4]

Millions of Canadian Silver Maple Leaf coins and American Silver Eagle coins are purchased as investments each year. The Silver Maple Leaf is legal tender at $5 per ounce, and there are many other silver coins with higher legal tender values, including $20 Canadian silver coins. In 2011, the Utah Legal Tender Act, made silver and gold U.S. minted coins legal tender in Utah, so that it may be used to pay any debt, without being subject to capital gains tax.

Price- silver bar description

Silver price history 1960 onward

The price of silver is driven by speculation and supply and demand, like most commodities. The price of silver is notoriously volatile compared to that of gold because of the smaller market, lower market liquidity and demand fluctuations between industrial and store of value uses. At times, this can cause wide-ranging valuations in the market, creating volatility.

Silver often tracks the gold price due to store of value demands, although the ratio can vary. The crustal ratio of silver to gold is 17.5:1 The gold/silver price ratio is often analyzed by traders, investors, and buyers. In Roman times, the price ratio was set at 12 (or 12.5) to 1. In 1792, the gold/silver price ratio was fixed by law in the United States at 15:1, which meant that one troy ounce of gold was worth 15 troy ounces of silver; a ratio of 15.5:1 was enacted in France in 1803. The average gold/silver price ratio during the 20th century, however, was 47:1

Physical bullion in coins or bars may have a premium of 20 percent or more when purchased from a dealer. Silver bullion bars have been available for purchase at a premium of less than 7% over the Comex spot price for much of 2015 and early 2016, while government-minted coins still command a much higher premium.

Physical coins generally have a higher premium. For example, one troy ounce (ozt) silver eagles coins released from the US mint at a $2 premium to official distributors who then sell coins for a mark up of $2.30 to $2.50 to customers depending on market conditions.[15]

In recent years ecommerce growth in the physical bullion industry has seen premiums reduced for retail investors to purchase products online with door to door shipping.[16] Many online dealers provide international shipping and weekly discounts on a wide range of products

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