Gold value has always been cherished humans, way before it was valued currency. It was first discovered in its natural state, as shining, yellow nuggets. It was the first metal known to early mankind. Man has gone to great lengths in an effort to find it. From covering vast geographical distances, stealthily sniffing and stalking as a predator would a prey to closely guarding it as an object of high value. Prospecting was an effort going back thousands of years, even before its first coin form appeared about 700 B.C.
Today, it has a universal appeal to humans. It’s almost always the case that a portion of the change in its price is really just a reflection of a change in the value of the U.S. Dollar. That accounts for part of the fluctuations seen in its value. But this begs the question as to how this commodity came to be sought after and a measurable unit of value.
It cannot be said enough that it possesses exquisite beauty (being a dazzling golden yellow color) and is also quite rare. It also has unique density and is easy to melt and form and measure. This makes it a preferred trading medium. Of all the known metals, it’s also the most ductile and easy to shape. A single gram can be beaten into a sheet of 1 square meter.
Many precious metals are weighed using an old system that is not used in the 21st century. They’re weighed in troy ounces which are not as heavy as the ounce measurement we use today. It is therefore necessary to be acquainted with this system so as not to get less value when buying or selling. It’s also measured by its purity, with 100 percent purity being 24 karat. The more it is combined with alloys, the lower the karat rating is. It has also been widely used throughout the world as a medium of exchange by establishing standards in which the total value of issued money is represented in a store of its reserves. In its pure form it is too soft, and cannot be used for daily monetary use. To overcome this, it is mixed with copper, silver or other base metals. The gold content of this mixture is then measured by a unit known as carat (k). This signifies the purity of the metal and shows buyers what they are getting. This also applies if you want to trade in for cash. The most common denominations for this are 24k, 18k, 22k or 10k. The lower the karat weight, the less of it is actually in the piece. The remaining elements in the mixture can vary depending on what color you want it to be. Usually the density is expressed in grams per ml or cc.
Depending on where the piece was made, this will determine on the overall quality. If you are selling your jewellery for cash, the only true way to get an accurate estimate is to go to a refiner and have them test it by hand, or melting it down and fire to analyze the strength of its chemical components.
How to Trade Gold?
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