Gulf Gold Bars – Caution
January 22, 2011 1 Comment
Here is an article of interest for all those who by gold bars from the Gulf.It appeared in TOI in August’10.
Purity of gold a big concern for jewellers
MUMBAI: After having detected the presence of platinum group metals in certain 24-carat gold bars imported from a few Middle Eastern countries, a leading jewellery industry body has urged the government to install sophisticated photosynthesising machines at each of the airports through which gold is channelised into the country. According to the trade, there are less than 4 such machines in the 150 hallmarking centres across the country.
“Over the past few years, we have been finding that certain 24-carat gold bars imported from some Middle Eastern countries contain traces of platinum group metals such as iridium and ruthenium,” said Vinod Hayagriv, chairman of All India Gems & Jewellery Trade Federation (GJF). “In light of this, we have asked the government to install photosynthesising machines, which cost over Rs 1 crore a piece, at customs in each of the cities’ international airports.”
Mr Hayagriv confirmed that though the incorporation of such metals in gold bars was limited to miniscule volumes of imported gold, the trade had to be “forewarned” of their likely presence. He was speaking at the launch of Swiss-made Milleret watches by Veeline Jewels & Watches at the recently concluded IIJS 2010, a business-to-business trade show organised by Gems & Jewellery Export Promotion Council.
Gold melts at 1063 degree celsius but the process begins at 800 degree C. Iridium and ruthenium melt at 1900-2000 degree C and can be melted along with gold. While gold starts melting at 800 degree C, ruthenium remains unmelted (the melting process begins at 2000 degrees C) in the form of a globule in some block of gold. As it remains unmelted the total weight of gold — the yellow metal is sold on weight — goes up. Read more of this post
If you are a typical Indian,and have some spare cash,you probably buy gold and that too as gold jewellery.The jewellery might be for personal consumption but it is still going to have to do double duty as a safe,low-risk and liquid investment . So the jewellery is going to be bought with a sharp eye on its resale value.Purity and grammage will be important considerations.Also getting a good price will be a major consideration and there is bound to be a bit of bargaining.
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