Issue One

2009-02-06T02:16:00.000-08:00

Gold Info

Welcome to The Gold Inquisitor! This is issue one of what will hopefully be a lot valuable educational material on Gold. The goal is help educate and to answer any gold or precious metal questions. Again, welcome.

Gold

Gold is a hot topic today. Right now, if you open the paper, turn on the TV or check your email… you can most likely count on a refiner’s advertisement for you precious metals. It’s a huge industry! In fact, according to USA Today, one refiner’s transactions more than doubled in 2008 to a staggering 500,000 (source: http://www.trademygold.com/)! Sure it’s a market right now, but how do you know what yours is worth? What are these refiners looking for? More importantly, is it safe and is it fair?

Refiners typically look at the quality of the piece, to determine the value of it. One factor that is used is weight, which is measured by what is called a Troy ounce (ozt). This is often the standard for gold, for platinum, and for silver. According to http://en.wikipedia.org/wiki/Troy_ounce#Troy_ounce , the Troy Ounce is 480 grains. A grain is 64.79891 mg, making a Troy ounce exactly 31.1034768 g. This weight system is also used for gemstones and black powder (a.k.a. Gun powder) as well.

A gold piece’s purity is always looked at. Some gold pieces are diluted with other metals; this affects the value and the purity of the given piece. The purity is measured in what is referred to as a karat or carat. In the United States of America and in Canada, the word is spelled with a “k.” The word is spelled as: Karat. Carat is often referred to the spelling of mass measure in gemstones (see also http://en.wikipedia.org/wiki/Carat_(purity)). The abbreviations are ct or kt depending on the circumstances. Karat classes range between 8K and 24K, with 24K being the purist and highest of quality.

Why are refiners just now starting to buy so much gold? Well, this is all actually a matter of public prospective and the industry’s growing visibility. Gold or precious metal refiners have been buying pure and scrap pieces from both the public and the private sectors for a very long time. This has always been a very profitable industry for the refiners. However, with gold and silver prices so high, and with a hurting and unstable economy… it’s created a proverbial perfect storm type of scenario. Gold is in demand, and the market is there. Gold is trading at high levels, around $1000 an ounce recently. So it is now a tangible commodity, and with this, the market place provides an amazing liquidity for gold and precious metals.

The inverse is also true. Now is the perfect time to acquire tangible assets. History has shown time and time again, that when the economy is in a down turn; a large percent of the public feels safe and more secure when they have hard assets. This makes gold, silver, and platinum, a very attractive investment vehicle for the general public.

Refiners are offering a total satisfaction guarantee, returning materials back to the owner within a specified time agreement and with no questions asked (http://www.trademygold.com/). Refiners even offer a 5% Refiners return program, which ensures the company, will return 5% more cash than its largest national competitor. Refiners are also cut out the middle man, helping to ensure the safety and the convenience of transactions.