| Frequently
Asked Questions |
| 1 |
What is Gold? |
|
The word Gold derived from the Latin
word ‘Aurum’ means Glowing
Dawn. It is a rare metallic element
and very useful for mankind. It does
not react with water or oxygen. |
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| 2 |
Gold is measured in Carats.
What is it? |
|
Carat was a unit of mass used by
ancient merchants in the Middle East.
It has been used as a measure of purity
for Gold and the jewelleries made
out of it. Pure Gold is designated
24 carat. The following chart will
illustrate the purity and caratage
of Gold:
| Caratge |
Fineness |
%Gold |
| 24 |
1000 |
100 |
| 22 |
916.7 |
91.67 |
| 18 |
750 |
75 |
| 14 |
583.3 |
58.3 |
| 10 |
416.7 |
41.67 |
| 9 |
375 |
37.5 |
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| 3 |
For Jewellery manufacture
what cartage is being used? |
|
In India jewellery is made of 22 ct.
Gold. In the international market gold
alloys of different caratage are popular.
For example in Europe it is 18 and 14.
In USA it is 14 cts dominates. In middle
east also 22 cts is popular. In china
almost 24 cts. jewellery is popular. |
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| 4 |
What are the alloys used
in Gold? |
|
Silver, Copper, Palladium and other
metals. Since the 100% Gold is extremely
soft these alloys should be added to
give hardness and strength to the products
made out of it. |
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| 5 |
What is the Colour of Gold? |
|
Pure Gold is a deep yellow colour
and that’s why it has been called
as yellow metal. However different colour
can be accomplished on Gold by formation
of special Gold Metal compounds or by
a surface coating. |
| 6 |
What are the other Colours
in which Gold is available? |
|
| Colours |
Features |
| White |
By varying the alloying metals. |
| Violet |
Combination of Gold and Aluminium
i,e 79% gold |
| Blue |
Combination of Gold and Indium
i,e 46% Gold |
| Black Gold |
Application of Electroplating
solutions based on rhodium or
ruthenium with special additions. |
These shades will have 18ct. or below
purities |
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| 7 |
What is to be done to ensure
the purity? |
|
In many countries the law requires
that every gold jewellery should be
stamped with its caratage. Hallmarking
is suggested to ensure the quality of
the product. |
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| 8 |
What is Hallmarking? |
|
Hallmarking is a mark of conformity
and additional confidence to the consumer
on the purity of the Gold jewellery.
This is a licence granted to a manufacturer
under which he is entitled to stamp
the products with the hallmark design. |
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| 9 |
Whether products in India
are Hallmarked? |
| |
In India, the Government has identified
Bureau of Indian Standards (BIS), to
operate this system. Currently hallmarking
is voluntary in nature. Manufactures
desiring to obtain the registration
should complete the prescribed procedure.
The licenced manufactures can stamp
the BIS Hallmark designs on their products. |
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| 10 |
How the Gold is priced? |
| |
Gold price always depends on trends
in international economic and political
situations. Volatility in Forex market
i,e variations between USD and other
currencies, Crude oil prices, political
situations etc have a major influence
on the gold price. |
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| 11 |
What is the scope for Gold
as an investment? |
| |
Gold is an excellent hedge against
inflation, and protects earnings for
the future. Modern investors can invest
in gold the traditional way - by purchasing
gold bullion in the form of bars or
coins - or they can trade in gold or
gold futures electronically, or by investing
in gold mining or refining companies. |
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