How to Buy Gold

If you do not buy gold or gold jewelery very often it is important that you know how to buy gold to ensure you get exactly what you want and at a good price as well.

So it is important that you understand the key factors when it comes to buying gold and gold jewelry.

When buying gold jewelry these key factors are:

• Karatage, or how much gold is there in a gold piece?
• Gram weight. Simply how much does the piece weigh?
• Design. Is it the right design for you?
• Craftsmanship. Is it well constructed and tastefully made?
• Price and purchase. How much is it and is it good value for the price?

Karatage, sometimes called karats is the amount of gold contained within a gold piece. This is how it is measured. Gold is very often mixed with other metals, such as silver, nickel, zinc etc, to help it last longer and be more durable. Gold is a very soft metal and pure gold can be distorted and wear away quickly especially if it is used a lot.

10k gold is only 41.7 percent gold. 18k is 75 percent gold and 24k gold is considered pure gold although it is measured as 99.99 percent gold since it is considered impossible to obtain pure gold.

All gold pieces should have the Karatage stamped on it somewhere.

Gram weight is the next important key item. How much does the gold item weigh? The higher the gram weight the more gold it contains, keeping in mind the Karatage, and the more expensive it will be. The more value it will have as well. This can be easily noticed with gold bracelets.

You might see two gold bracelets with the same Karatage. Say 18k. but one is chunky and the other is wafer thin. The gram weight of the chunky is going to be much more than the wafer thin bracelet although the proportion of gold to other metal remains the same, there will simply be more of it.

The design is next in line when considering buying gold in jewelry form. An antique design piece of gold jewelery is likely to be worth more than a new piece as it has an additional value of age, uniqueness and possibly rarity. Decorative gold tends to cost more as there has been more work put into it.

The Craftsmanship and quality of the gold is very important. Most of today’s gold jewelery is manufactured on machines but hand made pieces are still available and will cost proportionally more as a result. The quality of manufacture will show in how the gold is fabricated, including any fastenings and setting for gems etc. A quality gold piece will last for years with good and careful handling.

Price plays an important part and understanding the above will help you to be able to work out a good price for a gold jewelery piece. Many discounts are offered by dealers and jewelers so it pays to be wary and really find out what is being offered. Remember that the dealer is still making a profit on discounted items so how much are they really worth?

It is probably a good idea to have in mind what you want before you start looking. Get a good clear picture in your mind of the karat, weight, design and craftsmanship and design you want within your budget and then go seeking that.

The golden rule of course is to do your due diligence and know what you want and you will then really know 'how to buy gold'!

What Gold to Buy

What gold to buy is a question often asked. There is such a wide choice of gold available in today's market place it can be difficult to decide which to buy.

Gold bullion in the form of gold coins and gold bars, ingots, Exchange Traded Funds, gold nuggets (those found in river beads and directly on the ground), gold jewelry and others.

What gold to buy will depend very much on your reasons for buying gold as well as your budget.

If you are buying gold purely for decorative purposes or because you like specific gold jewelry or gold coins then of course that would be the way to go. Investment is not an issue in this case so only your budget will dictate how much gold to get in the form of jewelry or coins. One is buying for beauty and aesthetic reasons in this case.

There are many beautiful gold coins to collect and it can be rather fun to collect a specific set of gold coins over a period of time. Proof coins are often the best coins to collect and by slowly building up a collection one can have something impressive to show off to friends.

If you are buying gold more for investment purposes then the price you are paying for the gold becomes important. Small coins are bars are generally not worthwhile as the mark up of premium you pay will be as much as, if not more than, the value of the gold. A minimum of one ounce up to one kilo of gold is better as the amount you pay over the spot value of gold will be much less and you will recoup your investment much quicker as a result.

This is why Exchange Traded Funds (ETFs) are so popular. You generally only pay a small amount over the spot price (the brokers fee basically) and you then hold a certificate representing the amount of gold held for you in a bank vault. One of the issues with ETFs is the tax payable on the gains made. ETFs are considered more of an investment than coins or jewelry and so taxable.

For those who are keen to actually hold the gold in their hands then gold bullion in the form of bars is probably more appropriate.

What gold to buy is important and whatever form of gold you prefer and for whatever reason, you are likely to be happy to increase your assets and put your value in something more substantial than paper money.

About gold

• 

  2600 BC

  Early gold jewellery

  Goldsmiths of ancient Mesopotamia (modern-day Iraq) craft one of the earliest pieces of gold jewellery, a burial headdress of lapis and carnelian beads with willow leaf-shaped gold pendants.

  Image © Trustees of The British Museum
   
• 

  1200-1500 BC

  Advances in jewellery making

  Artisans develop the lost-wax jewellery casting technique. The process allows for improved hardness and colour variation which in turn broadens the market for gold products.
   
• 

  1223 BC

  Creation of Tutankhamun's funeral mask

  Instantly recognised the world over, the funeral mask of Tutankhamun is a triumph of gold craftsmanship from the ancient world.
   
• 

  950 BC

  Solomon builds gold temple

  The Queen of Sheba from Yemen presents King Solomon of Israel with 2,500 kilos of gold, bringing the contents of his treasury to 5,700 kilos. Solomon uses part of his holdings to construct his famed temple, allegedly overlaid with gold.

  © Nir Levy
   
• 

  600 BC

  First gold dentistry practiced

  The first use of gold in dentistry as the Etruscans begin securing substitute teeth with gold wire. Bio-compatibility, malleability and corrosion resistance still make gold valuable in dental applications.
   
• 

  564 BC

  First international gold currency created

  King Croesus develops improved gold refining techniques, permitting him to mint the world's first standardised gold currency. Their uniform gold content allows 'Croesids' to become universally recognised and traded with confidence.
   
• 

  300

  First gold nanoparticles

  The Romans use gold to colour the Lycurgus Cup. Melting gold powder into glass diffuses gold nanoparticles throughout which then refract light, giving the glass a luminous red glow.

  Image © Trustees of The British Museum
   
• 

  1300

  Hallmarking practice established

  The world's first hallmarking system, scrutinising and guaranteeing the quality of precious metal, is established at Goldsmith's Hall in London - where London's Assay Office is still located today.

  Image © The Assay office, Birmingham
   
• 

  1370

  The Great Bullion Famine begins

  During the years 1370-1420, various major mines around Europe become completely exhausted. Mining and production of gold declines sharply throughout the region in a period known as 'The Great Bullion Famine'.
   
• 

  1422

  Venice's record year

  The Venice Mint strikes a record 1.2 million gold ducats using 4.26 metric tonnes of gold from Africa and Central Asia. These small coins prove popular as they are easy to mint and carry plenty of value.

  Image © Classical Numismatic Group, Inc., CC-BY-SA-2.5, Wikimedia Commons
   
• 

  1511

  Ferdinand unleashes invasion force

  King Ferdinand of Spain proclaims "Get gold, humanely if you can, but at all hazards, get gold!", launching unprecedented expeditions to the Americas. Within years, the Inca and Aztec civilisations would be virtually destroyed by Spanish conquerors.
   
• 

  1717

  UK gold standard commences

  Britain moves onto a de facto pure gold standard, as the government links the currency to gold at a fixed rate (establishing a mint price of 77 shillings, ten and a half pennies per ounce of gold).
   
• 

  1803

  First gold electroplating practiced

  The first recorded experiment in electroplating is carried out by Professor Luigi Brugnatelli at the University of Pavia. Gold electroplating ensures improved conductivity, now essential to many 21st century technologies.

  Image © Deep Blue, CC-BY-SA-3.0, Wikimedia Commons
   
• 

  1848

  California Gold Rush begins

  John Marshall discovers gold flakes while building a sawmill near Sacramento, California. The greatest gold rush of all time follows as 40,000 diggers flock to California from around the World.
   
• 

  1885

  South African Gold Rush begins

  While digging up stones to build a house, Australian miner George Harrison finds gold ore on Langlaagte farm near Johannesburg. Miners flock to the region. South Africa will go on to become the source of 40% of the world's gold.

  Image © Terry Davis
   
• 

  1885

  First Faberge Easter egg crafted

  Carl Faberge makes his first gold Imperial Easter Egg for Tsar Alexander III. Named The Hen Egg, it was commissioned as a gift from the Tsar to his wife, the Empress Maria Fedorovna, beginning a tradition that lasts until 1917.

  Image © PetarM, CC-BY-SA-3.0, Wikimedia Commons,
   
• 

  1870-1900

  Adoption of gold standard

  All major countries other than China switch to the gold standard, linking their currencies to gold. The practice of bimetallism is abandoned.
   
• 

  1925

  Gold standard returns

  The UK returns to the gold standard at pre-war parity of $4.86=£1 with sterling convertible to gold at 77sh 10.5d per standard ounce. This follows the country's departure from the gold standard six years previously at the outbreak of World War I.
   
• 

  1933

  Roosevelt suspends gold

  President Roosevelt suspends US dollar convertibility to gold (gold at US$20.67/oz). The export of all transactions in, and the holding of gold by private individuals, is forbidden. Presidential proclamation makes the dollar convertible again in January 1934 at a new price of $35 per troy ounce.
   
• 

  1939

  World War II closes gold market

  The London gold market is closed on the outbreak of war, as at the beginning of World War II. The world will later return to a fixed system of exchange rates, this time with currencies fixed to the dollar and the dollar convertible into gold.
   
• 

  1944

  Bretton Woods conference

  The Bretton Woods conference sets the basis of the post-war monetary system. The US dollar is set to maintain a $35=1 oz gold conversion rate. Other currencies are fixed in terms of US dollar, thus forming a Gold Exchange Standard.
   
• 

  1961

  First gold bonded microchips

  Gold bonding wire is used in microchips engineered at Bell Labs in the USA. Nowadays literally billions of chips are bonded this way every year, controlling all manner of indispensible electrical devices.
   
• 

  1961

  First gold in space

  The first manned space flight uses gold to protect sensitive instruments from radiation. In 1980, 41kgs of gold is included in space shuttle construction through brazing alloys, fuel cell fabrication and electrical contacts.
   
• 

  1967

  First South African Krugerrand

  The Krugerrand is introduced in 1967, as a vehicle for private ownership of gold. This iconic coin is actually intended for circulation as currency.
   
• 

  1971

  Gold window closed

  The Bretton Woods system of fixed exchange rates comes to an end as President Nixon "closes the gold window", suspending US dollar convertibility to gold. The world enters its present day system of floating exchange rates.
   
• 

  1985

  First gold-based arthritis treatment

  Pharmaceutical giant, SmithKline & French, develops Auranofin, a gold-based drug for the treatment of rheumatoid arthritis. The drug receives regulatory approval and goes on sale for the first time.
   
• 

  1999

  First Central Bank Gold Agreement

  The First Central Bank Gold Agreement (CBGA) is agreed. 15 European central banks declare that gold will remain an important element of their reserves and collectively cap gold sales at 400 tonnes per year over next five years.
   
• 

  2001

  First gold used in heart surgery

  Boston Scientific markets the first gold-plated stent (Niroyal) used in heart surgery. Inserted inside large arteries and veins, such stents act like scaffolding, propping open the blood vessels to allow adequate flow.

  Image © Richard Lee
   
• 

  2003

  K-gold launched in China

  The World Gold Council creates an entirely new market segment with the launch of K-gold, the first 18k jewellery in China. The jewellery, in predominantly white and yellow gold, takes its inspiration from Italian design.
   
• 

  2004

  Launch of SPDR^® Gold Shares

  The market is transformed by an innovative, secure and easy way to access the gold market. Six years later SPDR® exceeds $55bn in assets under management.
   
• 

  2009

  Central banks return to buying

  In the second quarter of the year, central banks collectively become net purchasers of gold for the first time in two decades. This reflects a combination of slowing sales from European banks and growing purchases by emerging market countries.

  Image © Lonely Planet Images
   
• 

  2010

  Gold price sustains record highs

  Fiat currencies are undermined by inflation fears and successive financial crises. The London pm fix achieves 35 separate successive highs in the year to date.
   

91 Carat Maida Diamond 14kt Golden Gold Engagement Ring.

This Exhilarating Diamond Engagement Ring Incorporates AB old Design That Is Very Unique. Its Fascinating Central Focal Point, A Glittering Round Cut Diamond With A Weight Of . 52 Carats Will Numb Your Senses. This Diamond Has A Clarity Of Si2 By the side of A Color Grade Of H. The Setting Contains Sgimmering Baguette Cut Diamonds That Enhances The Centerpiece. These Baguettes Have A Total Combined Weight Of . 39 Carats And Ranges In Clarity From Vs2-si1 With A Color Grad eRanging From H-i. The Distinctive, Gently Curving Design Of This Ring Adds To Its Character. This RingI s Made Of 14kt Yellow Gold With A Total Gold Weight Of 5. 30 Grams. 

Genuine 4 Stone Emerald And Diamond Ring.

Native 4 Stone Emerald And Diamond Ring Crafted In 14 Kt Yellow Gold 4 Stones 1. 10 Carats Oval Emeralds 5x3mm Hue: Medium Green Clarity: Eye Clean To Slightly Included, 6 Stones 0. 06 Carats Round Diamonds Color: I Clarity: Si1 - Si2 . Made In Usa . Metal Available:_14 Kt Yellow Gold, 14 Kt White Gold. SKU: 23143

Golden Wattle Gold Coin

The Royal Australian Mint produces many gold coins of various types, not the least of which is the Golden Wattle Gold Coin.

The Golden Wattle Gold Coin is a striking depiction of Australia’s national Flower, the Wattle.

This coin was struck in 24 carat gold to very exacting standards in three types. $150 and $100 face value proof coins and a $100 brilliant uncirculated gold coin. The mintage was severely limited to 1500 for the 150 dollar proof coin, 2500 for the $100 dollar proof coin and just 3000 for the brilliant uncirculated gold coin.

All are one half a troy ounce of 24 carat fine gold.

Each coin came with a numbered Certificate of Authenticity and the Golden Wattle coins were the seventh in a series of nine issues celebrating the beautiful floral state emblems of the Australian States. The series includes:

• 1995 Waratah New South Wales emblem
• 1996 Tasmanian Blue Gum,Tasmania emblem
• 1997 Mangle's Kangaroo Paw, Western Australia emblem
• 1998 Sturt's Desert Pea, South Australia emblem
• 1999 Common Heath, Victoria emblem
• 2000 Cooktown Orchid, Queensland emblem
• 2001 Golden Wattle, Australian floral emblem
• 2002 Sturt's Desert Rose, Northern Territory emblem
• 2002 Royal Bluebell, Australian Capital Territory emblem

The Golden Wattle coins were beautifully presented with the 150 dollar coins coming in a Blackwood timber box and the 100 dollar coin in a jewelry style case.

The Golden Wattle gold coin was indeed a beautiful coin and would be a treasured possession for any coin collector.

Trelawney Intersects 304.00 Metres of 1.65 g/t Gold in 200-Metre Step-Out Hole From the Cote Lake Deposit

TORONTO, ONTARIO -- Trelawney Mining and Exploration Inc. (the "Company" or "Trelawney") (TSXV:TRR)(FRANKFURT:RTW) announces additional drill results from the Cote Lake Deposit on the Chester Project located halfway between Timmins and Sudbury in northern Ontario. Highlights of the current drilling include:

    * Hole E11-48 – 285.80 metres of 1.18 g/t gold
    * Hole E11-49 – 275.00 metres of 1.26 g/t gold
    * Hole E11-53 – 304.00 metres of 1.65 g/t gold

Expansion drilling of the Cote Lake Deposit continues to intersect wide zones of low to moderate grade gold mineralization. The results of drilling released today are from step-outs to the west of the Inferred Resource for the Cote Lake Deposit which currently stands at 131 million tonnes grading 1.0 g/t gold for a total of 4.2 million ounces gold as reported in Trelawney's March 7, 2011 press release. Hole E11-48, collared on section 88E and the first 100-metre step-out west of the resource, intersected mineralization at a vertical depth of 140 metres. Additional drilling has been conducted to follow the mineralization upward toward surface. Holes E11-49 and E11-53 were drilled an additional 100 metres to the west, on section 87E, and therefore 200 metres west of the reported resource; both holes intersected wide zones of gold mineralization. Hole E11-53 was collared in mineralization and returned a 304.00 metre intersection of 1.65 g/t gold, including 3.57 g/t gold in the first 85 metres of the hole. Overburden depth at this location is approximately 8 metres.

Including drill results released today, mineralization of the Cote Lake Deposit has now been intersected over a strike-length of 900 metres and remains open along strike, and at depth on all sections that have been drilled. The mineralization delineated by drilling to date, coincides well with a NE-SW-trending IP anomaly. Results of the IP survey over the Cote Lake Deposit area suggest additional strike extensions of the mineralization are possible. A copy of the induced polarization survey map over the Cote Lake Deposit along with updated drill sections will be posted on the Company's website within the week.

The Cote Lake Deposit consists of low to moderate grade gold +/- copper mineralization which is associated with brecciated intermediate to felsic, and locally mafic intrusive rocks. Mineralization occurs in the form of disseminated and fracture-controlled sulfides which generally correlate to the gold values. Visible gold is commonly observed. The zones are bleached with the prevalent alteration being feldspathic, chloritic and biotitic. The nature of the alteration and mineralization is indicative of a porphyry-style deposit.

The expansion and exploration drill program continues with five drills currently working. The majority of the winter drilling has been completed on the wetlands and an aggressive program will now be conducted following the mineralization to southwest. Infill drilling of the deposit has also commenced; this will increase the confidence of the resource and facilitate future upgrades in the resource category.

Greg Gibson, Trelawney's President and CEO commented, "We are very pleased with the results of this initial step-out drilling. These drill results confirm our belief that our initial resource estimate can be expanded significantly, along with potential increases in grade as these results are above the average grade reported in our initial resource."