|1||Metallurgy||It is a technology of extracting metal by chemical methods, to extract metals from the mineral ores. Sometimes, they are called alchemy too.|
|2||Refining||It is a process of removing impurtities in the gold by two most common methods which are Miller process and Wohlwill process.|
|3||Smelting||It is the process of extracting metal from ore by using high pressure, heat and chemicals. Smelting gold involves high-technology and high cost tools to perform.|
|4||Bullion||Bullion is physical gold, silver or other precious metals in the form of bars, ingots or specialized coins that is said to maintain its value.|
|5||LBMA||LBMA is London Bullion Market Association. An international trade association representing the global bullion market and defines itself as “global authority on precious metals”.|
|6||Yellow gold (jewellery)||Yellow gold is the purest form in gold and for jewellery, it is made into alloy which contains pure gold, zinc and copper.|
|7||White gold (jewellery)||White gold is an alloy that mixed with palladium or nickel to give the colour silver or platinum.|
|8||Rose gold (jewellery)||Rose gold is an alloy that mixed with approximately 25% of copper which gives the pinkish colour. Sometimes, known as pink gold.|
|9||Karat||It is a gold measurement. It measures the fineness (purity) of gold. It is spelled Carat outside of United States.|
|10||Alloy||Alloy is an admixture of metal or a metal combined with one or more elements. For example, gold and copper produces yellow gold.|
|11||Troy ounce||Troy ounce is a unit of measure used to weighing precious metals that dates back to old days. One troy ounce is equal to 31.1g.|
|12||Aqua regia||A yellow-orange fuming liquid that can dessolve the moble metal gold and platinum. It is used to dissolved gold which used in industrial products such as circuit boards.|
|13||Aurum||Gold is a chemical element with the symbol which comes from Latin word “aurum”. Au seal maybe found in some white gold jewelleries.|
|14||Dinar||The modern Islamic gold dinar is a projected bullion coin and first issued in AH 77. The wieght of the dinar is 1 mithqal (4.25 grams).|
|15||Precious metal||Precious metals are rare, naturally occuring metallic chemical of high economic value. Gold, silver, platinum and palladium each have an ISO 4217 currency code.|
|16||Gold tooth||Gold tooth is a form of dental prosthesis where the vissible part of tooth is replaced with a prosthetic molded from gold.|
|17||Gold plated||Gold plated means jewellery made of a base metal such as copper or silver that has a very thin layer of gold applied to the top.|
|18||Gold Filled||Gold filled means jewellery is made by taking one or more sheets of solid gold and wrapped them around a base metal inder intense pressure.|
|19||Vermeil||It means gold plated sterling silver or fine silver, It is regular old plating except the underlying metal is silver instead of a base metal.|
|20||Nugget||It is gold fragment weathered out of an original lode. Nuggets are usually K20 to K22 in purity|
Gold prices have skyrocketed this year, due to the panic generated by the Covid-19 pandemic. The metal is trading at $2050 an ounce now, up 33 per cent year-to-date, outpacing all other asset classes. Investors and hedge fund managers are queueing up to buy gold in the futures and ETF markets, and this is pushing price of the precious metal higher and higher.
In countries such as the US, the UK and the EU region, a second round of stimulus is expected to combat the continued impact of Covid-19 on these economies.
It must be noted that an easy monetary policy makes paper currencies weak and forces investors to seek safety in gold. According to data from the World Gold Council (WGC), gold-backed ETFs globally have seen record inflows so far this year, adding $47.8 billion as of July 27. Interestingly, in the June 2020 quarter, demand for gold from investors (including those buying coins and bars) was 539.6 tonnes, which exceeded demand from consumers of gold jewellery, at 325.8 tonnes. The last time such a trend was seen was in June quarter of 2016 but, at that time, prices were far cheaper — at $1,182/ounce.
Why hedge funds cut long positions
Besides ETFs, demand for gold in the futures market is also strong now, thanks to hedge funds being bullish on the metal. Since mid-June, net long positions of hedge funds in gold futures has only been increasing. In March, and until middle of June, data from the US Commodity Futures Trading Commission (CFTC) on positions of hedge funds in gold futures implied that the gold price rally would lose the fizz as net long positions of the money managers were dropping. But now, looking back, it appears that it was the supply-side challenges in movement of gold from vaults and mines that made hedge funds reduce their long positions.
There are some interesting facts from the recent WGC report which force the conclusion that the yellow metal rally is not over. First, while in the previous rally between 2008 and 2011, the price doubled — from $900/ounce to $1,970/ounce — this time around, the increase in price has been just 30 per cent. Further, in the current year, the yellow metals’ three-month and one-year rolling returns have moved by only two standard deviations or less, which is significantly below levels seen in previous periods (in 2006 and 2008), when prices increased by three-standard deviations or more. One must also note that adjusted for inflation, the current gold prices are still lower than the 2011 high.
Gold prices may continue to remain strong for more time.
IMF also holds a negative outlook on growth for 2020 and 2021. Weaker economies and weaker paper currencies will support gold prices. It makes sense for investors to add this metal to their portfolio, even at current prices. You can invest 10-15 per cent of your portfolio in gold any time for diversification purposes. Start moving small portions of your portfolio into the metal through gold ETFs or gold futures in regular intervals over the next six months. You can also consider investing through sovereign gold bonds.
Series V of the sovereign gold bond issue for 2020-21 is open now (till August 7); price is ₹5,334/gram. On your investment in the bond, the government will also pay an annual interest rate of 2.5 per cent. The interest earned is taxable; however, capital gains, if any at maturity will be tax-exempt.
Gold fell nearly 1 per cent on Tuesday as LockDown easing plans boost risk appetite by some countries easing coronavirus-induced restrictions, although recession fears and hopes for more stimulus kept the bullion near the $1,700 level.
Spot gold eased 0.7 per cent to $1,702.00 per ounce by 0701 GMT, after falling as much as 1.4 per cent during the session. US gold futures fell 0.4 per cent to $1,716.20 per ounce.
Some countries, including Italy and New Zealand, announced an easing of lockdowns and more parts of the United States looked set to restart business.
Gold prices rose on Wednesday, after surging more than 3 per cent in the previous session.
As the US Federal Reserve cut interest rates to help soften the economic blow from the coronavirus outbreak.
Spot gold climbed 0.3 per cent to $1,644.97 an ounce by 0052 GMT.
Having registered its biggest one-day percentage gain since 2016 gold prices in the previous session
G7 finance ministers and central bank governors said on Tuesday :
They would use all appropriate policy tools to achieve strong, sustainable growth and safeguard against risks from the virus, which has fuelled global recession fears.
The World Health Organization warned
Of a global shortage and price gouging for protective equipment to fight the epidemic and asked companies and governments to increase production by 40 per cent as the death toll mounted.
Palladium slipped 0.4 per cent to $2,490.62 per ounce, while platinum was up 0.1 per cent at $875.62.
Silver rose 0.3 per cent to $17.22 an ounce.
Demand for platinum from the auto industry will rise this year for the first time since 2016
But it won’t be enough to offset a decline in investment buying, leaving the global market in surplus again, the World Platinum Investment Council said.
Gold prices fell 1 per cent on Tuesday as investors chose to pocket profits after the metal hit a seven-year high in the previous session, although growing fears over a spike in new coronavirus cases outside of China capped bullion’s losses.
Spot gold was down 0.7 per cent to $1,649.49 per ounce by 0132 GMT, having touched a session low of $1,642.89.
ASIAN shares extended losses amid fears the virus was rapidly mutating into a pandemic that could cripple global supply chains and wreak far greater economic damage than first thought.
The death toll climbed to seven in Italy on Monday and authorities sealed off the worst-affected towns, closed schools and halted the carnival in Venice, where there were two cases, while several Middle East countries were dealing with their first infections.
Financial markets on Monday ratcheted up bets the US Federal Reserve will be pressed to cut interest rates to cushion a feared hit to economic growth from the epidemic.
Bullion rose to a more than seven-year high of $1,688.66 in the previous session.
US gold futures fell 1.5 per cent to $1,651 an ounce.
The 1 per cent fall of Gold prices was because of margin calls but definitely that has triggered an added wave of profit-taking
After two decades of painstaking research,
the Uttar Pradesh Directorate of Geology and the Mining and Geological Survey of India
have discovered two goldmines —
one each at Son Pahadi and Hardi village — in the state that could collectively possess 3,350 tons of gold ore.
The gold deposits together could be five times that of India’s current reserves.
In Son Pahadi the gold deposit is estimated at approximately 2,943.25 tonnes,
while almost 646.15 tonnes could be found at the Hardi field.
India’s current gold reserves is around 626 tonnes.
The gold at both deposits could amount to approximately Rs 12 lakh crore.
Gold deposits found in Sonbhadra district by Geological Survey of India and Uttar Pradesh Directorate of Geology & Mining. K K Rai,
District Mining Officer says,
“Government is thinking of putting these deposits on lease for mining, for which survey is being done”. (20.02.20) pic.twitter.com/mgC7QW4Ufo
According to officials, a seven-member team tasked with geo-tagging and mapping goldmine areas visited Sonbhadra on February 20.
Officials claimed that the mineral-rich mines of Sonbhadra are easy to dig
give their geographical position as they are mostly situated on hillocks.
The officials believe that the government will begin the auction process once compensation payout and necessary approvals are granted.
10 Things You Didn’t Know About The Republic Day On 26th January
- What does Republic mean? Republic refers to a state in which the supreme power lies in the hand of the subject or people and they elect a representative to run the state. It also refers to “no monarchy” and our constitution adopted a Democratic government.
- The Indian Constituent Assembly adopted the Constitution on 26th November 1949 and it came into real effect on 26th January 1950 -Republic Day .
- One may ask why 26th January was selected as the Republic Day? It is because it was on this date in the year 1930, Indian National Congress proclaimed a “Purna Swaraj” or Complete Freedom opposing the British Government.
- Till the time, the Constitution was at the drafting table, the state was following the colonial Indian Government of India Act. Thus, the head of the state was an appointed Governor-General and not an elected President.
- As the Constitution came into being, Dr. Rajendra Prasad became the 1st President of India.
- Do you know that the Indian Air Force was known as the “Royal Air Force”? On this day, this word “Royal” was dropped from the name and the new name was Indian Air Force.
- The whole nation waits to watch the Republic Day Parade on Television on 26th Several people have been the guest of honor for this Republic Day Parade. Do you know who the 1st guest of this Parade was? It was the then Indonesian President Sukarno in the year 1950 who graced this event.
- The Constitution of India is the longest one in the world. The makers of the Indian Constitution copiously read all the Constitutions of all the independent nations from four corners of the world and incorporated all the good things here. For example, the 5-year plan was taken from the Constitution of USSR while the division of power between the Union & the State was taken from the Constitution of Canada.
- 21 gun salutes follow the act of the President of India hoisting the National Flag on 26th January.
- This Republic Day celebration is a three day affair. It ends with “Beating the Retreat” – a military ceremony held on 29th
Everyone’s always comparing Bitcoin to gold. However, other precious metals rhodium have shown significant promise due to their rarity and how costly they are to find.
MYSTERIOUS METAL RHODIUM
Rhodium is one standout that has seen incredible price movement this past year and exceeded all expectations. It’s even left Bitcoin in the dust. The precious metal was trading at around $2,500 per oz. at the beginning of 2019 and has since surged to around $8,000. That’s a shocking gain of around 220% for just the year alone. Bitcoin, on the other hand, had more modest returns by comparison. The leading cryptocurrency rose from around $3,800 to $7,200 in 2019, a return of about 89% or so.
In the past four years, rhodium has broken all expectations. The metal has risen 12-fold in the past four years, outperforming all major commodities and currently even Bitcoin. This is due to its high demand in the automobile sector and its rarity which leads to wild volatility. Rhodium is used for electrical contacts and catalytic converters in cars. It can also be used in nuclear reactors to measure neutron flux levels.
Rhodium, however, is difficult to come by to acquire and trade. The precious metal’s demand will likely continue to grow, but supply is struggling to keep up. Global production is currently at around a 10th of platinum or palladium, according to Bloomberg. South Africa currently accounts for more than 80% of global output which has led to a massive mining boom in the country.Still, rhodium looks to have bested Bitcoin in 2019 despite the fact that most investors have never even heard of it.
It’s unclear whether the precious metal can continue this price rally, but it might be time for Bitcoin fans to start keeping an eye on this sought-after commodity. It may have more room to shine as automobiles look for more efficient exhaust emission controls.
Spot gold fell 0.2 per cent to $1,562.81 per ounce by 0107 GMT. In the previous session, prices hit their highest since April 2013 at $1,582.59. US gold futures fell 0.2 per cent to $1,566.00.Gold prices inched lower on Tuesday, a day after hitting their highest in nearly seven years, with a lack of immediate escalation between the United States and Iran denting bullion‘s safe-haven appeal.
Gold prices inched lower on Monday as investors moved to riskier assets following the announcement of an interim deal between the United States and China that cooled a 17-month-old trade dispute.
Spot gold was down 0.1 per cent at $1,473.88 per ounce, as of 0050 GMT. US gold futures were down 0.2 per cent at $1,478.60.
The “phase one” trade agreement was announced on Friday and on Sunday US Trade Representative Robert Lighthizer said US exports to China will nearly double over the next two years although officials are yet to decide a date to sign the agreement.
TARIFFS IN CHINA
The United States suspended some tariffs on Chinese goods that was due to go into effect on Sunday, while China State Council’s customs tariff commission said it had dropped its plan for additional tariffs on some US goods.
Asian shares rose as investors breathed a sigh of relief after a thaw in tariff war.
The US economy is doing well and looks set to stay that way next year, two top Federal Reserve policymakers said on Friday, remarks that suggest they are content to leave interest rates where they are However, data from US showed on Friday retail sales increased less than expected in November as Americans cut back on discretionary spending despite a strong labour market.
In the UK, British Prime Minister Boris Johnson will “get Brexit done” by Jan. 31 and then agree to a new trade deal with the European Union by the end of 2020, cabinet office minister Michael Gove said on Sunday.
Speculators slashed their bullish positions in COMEX gold in the week to Dec. 10, data showed.
INDIAN GOLD MARKET
Gold dealers in India offered a discount last week due to plentiful supplies and slack demand during the wedding season, with other regions in Asia expecting improvement in buying ahead of the Christmas and Chinese New Year festivities.
PALLADIU -PLATINUM -SILVER MARKETS
Elsewhere, Palladium rose 0.6 per cent to $1,941.09 an ounce, silver shed 0.1 per cent to $16.92 per ounce, while platinum fell 0.2 per cent to $926.08.