Testing Gold the Archimedes Way

Wealthymatters.comI’m sure most people have heard the Archimedes story.He was the Greek guy who got out of his bath tub and ran,naked, down the street,shouting Eureka!Eureka ! I’ve Found It !

Just to refresh memories,here is the story:

Archimedes was a Greek scientist who lived in ancient Syracuse . The King of Syracuse wanted a gold crown made. So he gave some gold to a goldsmith to have one made. After few days, the goldsmith brought the finished crown to the King. The King had the crown weighed. He found weight of the crown to be equal to the weight of the gold he had given the goldsmith . However the color of the crown made the King suspicious. He believed that the goldsmith had pocketed some of the gold he had been given for his own personal use. The King wanted to find out the truth. So he asked his court scientist Archimedes to find out how pure the gold in the crown was.Obviously Archimedes could not melt down the new crown to determine its purity.So to find a solution Archimedes thought about the problem day and night. One day,while he was preoccupied thinking about this problem, he proceeded to take a bath. He was so preoccupied that he failed to notice that the water in his bathtub was already full to the brim.So as he got into into the bathtub ,a large quantity of water flowed over the rim . Archimedes noticed this and had a brainwave . He was so excited to have at last found the solution to the King’s problem that he jumped out of the bathtub,and ran naked down the street, shouting, “Eureka! Eureka!” Eureka in Greek means ‘I have found it.’ Read more of this post

Chinese Gold

wealthymatters.comHere is a piece of news I came across.Since so many Indians consider shopping in HK these days I think the following clipping  is a must read.

Fake gold scam hammers Hong Kong jewellers

 With the gold price sitting at record highs, Hong Kong jewellers and pawn shops have been hammered by one of the most sophisticated scams in which hundreds of ounces of fake gold were traded in the market.

The gold-mad city has woken up to a massive scam as investigators discovered that at least 200 ounces of fake bullion, worth about $250,000 have been traded at the island`s fabled jewellery souks so far this year, Financial Times reported.

“It’s a very good fake”, said Haywood Cheung, president of the Chinese Gold and Silver Exchange Society, Hong Kong’s hundred year old gold exchange, highlighting how criminals are developing new techniques to commit an age-old fraud.

 Though officially only 200 ounces of fake gold was recorded as traded, Cheung estimated that 10 times that amount might have infiltrated the retail market. Describing the swindle as ” one of the most sophisticated scams to hit Hong Kong gold market in decades”, the Financial Times said it has come when the price of gold has soared to record highs of $1,400 an ounce.

In one case, executives discovered a pure gold coating that masked a complex alloy with similar properties to gold. The fake gold included a significant amount of bullion — about 51 per cent of the total — alloyed with seven other metals: osmium, iridium, ruthenium, copper, nickel, iron, and rhodium. Read more of this post

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