Monday, December 24, 2012

Common Strategies Forex traders Use to Trade Gold

Gold trading, regarded as lucrative, has great opportunity to grow your financial portfolio and investments. However, this would not be true if you are not able to execute a good strategy in the gold trading. Strategy is very essential for any kind of trading. This is primarily because if you are able to execute a good and sound strategy, you will be able to overcome all the difficulties associated with the trading. Therefore, having known the basic knowledge of gold trading, let’s learn the important strategies for gold trading, which will helps you a lot in the future trading.
Fundamental analysis
Fundamental analysis is the first and foremost thing gold traders should do, as gold traders decide to sell/ buy gold according to gold price trends. In order to make a correct fundamental analysis, traders need to take all the factors that influence gold trading into consideration, such as GDP growth rate, inflation, interest rates, demand & supply, and so on. Of course, most of the information can be found on the related websites.
Technical analysis
In this type of analysis the factors which are taken into consideration are market trends, chart patterns, moving averages and economic cycles. All these help investors in predicting the future price of gold. You can take advantage of the facilities of online gold trading. Many trading platforms will be a good helper in technical analysis.
Diversify your portfolio
All the eggs in one basket you will face huge risk. Diversification can help reduce the level of risk exposure to a portfolio. Traders can make their portfolios diverse when trading gold online. This is a very important strategy to help traders understand gold trading.
To be cautious
In the investment world, it’s not bad to be adventurous. But this does not mean you can be tactlessly aggressive. You need to make sure your investment is relatively safe and keep an eye on your risk level.
Seek for professional help
With the advice and assistance of the experts, gold trading will be much easier. This is especially true if you are new to the gold trading.
 source: http://www.ikonfx.com/forexblog/gold-trading-strategy-common-strategies-forex-traders-use-to-trade-gold/

Friday, November 23, 2012

Know About Online and Physical Gold Trading

If you are interested in starting a business on trading, gold trading is one of the best options available for you. There are many reasons for you to think of trading this precious metal. One of the strongest reasons is that its prices never come down on the longer term. Another is that it is not a perishable commodity that you need to dispose of your earliest whether or not you get profits. Also, you never need to have an in depth knowledge on the commodity. You only need to know its pattern of price fluctuation.
When it comes to trading gold you have two options. If you want to do it in the traditional way, you need a big capital and it is necessary for you to visit places where you could purchase your gold in order to make your purchase. It is also necessary for you to have some arrangement to sell. Either you need to meet your customers and sell them or it is necessary for you to have a shop where you sell your gold coins or gold bars.
In case you do your gold trading in the modern way, you only need very little money and you could do your trading from home. In order to use this method you need to have a computer with an internet connection and also you need to have a good knowledge on using the computer for trading. You need to use the tools offered by your forex broker and it also is necessary for you to have an up to date knowledge on world affairs and the economic situations of countries important for trading gold.
In both types of gold trading the most important aspect is to be aware of price fluctuations of gold. It is a must for you to buy your gold when the price is low and sell when the price goes high. In case of online trading your broker will help you with the necessary information. But when you do it physically you need to depend on your own knowledge on the market trends. Therefore, you need to read newspapers and magazines that provide guidance on the price fluctuations of gold in the world markets.
In case you are able to follow these few tips you are ready to engage in gold trading and earn very good profits. If you have money to throw in, choose the traditional trading. If you don't have money and have the knowhow, choose online trading.
Physical gold trading is an older method but some people still prefer it. Online gold trading is easier and you never need a big capital to do it either.
Article Source: http://EzineArticles.com/?expert=Muhammad_Ahmad_Siddiqui

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Simple But Effective Tips In Getting A Good Price For Your Gold

When you own precious metals like gold, it's natural to be anxious when selling them. After all, they are very valuable. It's normal to want to achieve the maximum price for your gold. If you have little to no experience in selling something valuable like this, it's best to do some research first, otherwise, you will end up selling your gold for a pittance. There are countless consumers who have been underpaid for their precious stones and metals. However if you follow the simple tips below you can protect yourself from unscrupulous buyers.
The first thing you should know is that you can sell your gold beyond the realms of pawnshops or jewelry stores. These days, you can also sell your gold online. There are websites that offer to buy and sell gold items, from jewelry to bars and nuggets. However, you should be careful when choosing an online site to do business with. There are a plethora of online stores around so try to pick an established one with a good reputation. Use the power of the internet to check on a dealer's background thoroughly.
Usually, these websites will ask you for detailed personal information. Once the required information has been discussed, you will be asked to order their kit. This is the stage where you will have to properly disclose the details of your gold items. Then, you will need to send your gold along with the kit to the company which will give you a predetermined price dependent on weight and quality of the gold. It's vital t to check whether or not these kits are insured, otherwise if the gold goes missing you will be out of pocket with no means of recovering the lost value of the items. Note that if it is a legit dealer, the kits will carry the proper insurance coverage.
You will need to know whether or not your items have reached the company safely so make sure to keep the tracking number. If not, make sure you have full contact details, including telephone number, of the gold broker so you can keep abreast of any developments. After the items have been received, the company will assess the items and send you a check based on the weight of your goods. Be careful to check that the broker has not included any hidden charges or costs. In the event that you are not satisfied, it's important that you send the check back to the gold broker and ask for your items to be returned.
Find Gold buyers tips by using the internet. Key in gold buyers Melbourne in major search engines today.
Article Source: http://EzineArticles.com/?expert=Luther_Gommer

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The Economic Role of Gold: A Brief Essay on How Gold Has Shaped Our Economy

Gold has significantly shaped the history of man, his economics and his over all perception of life to being a simple hunter gatherer to a man who is driven by the power of capitalism and understands the value of wealth and its possession. Gold when discovered nearly 40,000 years ago when Paleolithic man picked up a piece of rock which had gold deposits in it. Gold had never helped man develop tools of his early needs like arrows or spears or even for agricultural purposes. Being malleable, soft it did not have much use with early man. Bronze discovered about 10,000 years and silver later, were valued much more compared to gold which was discovered much earlier. A bright yellow illuminating object that may have caught the attention of early man was often traded as a valuable piece of object much later on as the system of barter did not have a place for gold nor was it used. Gold was probably used in some form as a shiny object that could have been used to some extent in jewelry and even for scaring the enemy when engaged in war. But it was only recently about 5000 years ago when the social status was devised and man divided the society into classes that he understood that this is a rare metal and thus precious and started using it in more aesthetic manners including jewelry, for worship and for trade. Gold started to be considered as a mark of royalty or power and richness and became a prerogative of the high and the powerful to be owned. Gold has always been considered to be incorruptible without blemish. In some cultures gold is synonymous to the power of the sun. The Aztecs and the Incas believed that gold came from the sun, considering it to be its sweat and excretion. The mighty and rich Egyptians considered there kings to be direct descendants of the sun and gold as the one true flesh of that king. Thus gold had a significant impact upon all these ancient empires and their cultures. The Egyptians at about 3000 BC were the first to start a monetary system entirely of gold and silver. Their power and influence across the Nile grew with the discovery of the Nubian gold mines. Exploitation of the Nubian mines lead to unimaginable wealth and the establishment of the first true great empire of the world. The Egyptians had established a system of economics and the first monetary exchange based on gold and silver and thus creating an economic order based out of currency and not barter.
Trade and the development of barter
Even since man has had the realization that he alone cannot provide for everything that he needs, he understood the importance of trade. When there was no money, people still traded using whatever they could lay their hands on. Shells, fruits, crop, and anything that was important and has some sort of value attached to it would be traded. This gave rise to a system of trade that we call as barter. Man would exchange a hunt with another for getting wine, exchange wine for clothes, and clothes for any tools that he would need. Generally the chief item of trade among the people of Asia and Europe was cattle. Cows and oxen were traded as means of exchange for goods and services rendered. This resulted in the specializations of trade and men started living in societies where each man had a role to play in the larger scheme of things. So a potter would still be able to east without knowing how to grow crops and a wine maker would have the pitchers that he needs to store his wine without having the know how. A common form of sustenance thus resulted in what we call as society. In some societies, still today, people would trade using items and not money as in coinage and paper currency. Precious metals came after cattle and started to be used as a supplementary form of exchange and then slowly took over as the primary form.
Why money was needed?
During the days when barter trade was prevalent every item would have a fixed exchange rate compared with the other items that were traded. 1 bag of rice for 2 new clothes, 20 bags of rice for a cow and so on. However in a simpler trading situation this would have been possible where the number if items on exchange were few. When the market expanded, things became complicated and more and items were started to be traded. Barter became complicated because hundreds and thousands of items now needed an exchange rate to be traded properly. This gave birth to money. When money was introduced, every item in the market had a fixed exchange rate based on a unit of currency or money.
Rise of gold as an international standard, why it was popular?
Gold has always been accepted universally. It has significant value attached to it which is why people readily accept it as a form of payment. The significance of gold as an international standard of payment rose when it was accepted internationally as a form of payment. This was during the hay days when gold standard operated as a basis of international payments. However the International Monetary Fund took gold out of the equation and ensured that it no more plays a significant role. Gold as a means of reserve in the international market fell from nearly 70% to a mere 3%.
During the years 1880 to 1914 gold formed the basis of payment internationally. All currencies were valued to a fixed amount of gold which was held in reserve. The governments would have to repay the amount of the printed currency in gold when presented. This was done to ensure that the paper currency which was in circulation has a fixed value and the governments would not print excessive amounts of paper currency and thus create cheap money in the process. The basic idea was to restore the confidence of the people on the circulated paper currency and ensure the survival of it.
However the international gold standard started to dwindle out and by 1913 the United States had about 90% of their money supply from paper money and demand deposits. However the scenario again changed after the first Great War. Post the First World War, there was a popular sentiment which wanted the old gold currency to be restored. High inflation and taxation had the entire Europe and America reeling. The United States was the first country to return back to the gold standard. This was followed by several European nations who also returned back to the gold standard. However during the First Great War the economies had been hit severely. The pressures of having run the war for years, the economies started to find the pinch and slowly started to detach themselves from the gold standard.
1934 was the year when the United States reeling under the pressures of the Great Depression, introduced the Gold Reserve Act. It practically gave a monopolistic control over possession of gold in the country to the government of United States. Private possession of gold was banned. The price of gold was sent to $35 an ounce and the dollar was devalued as well. The idea was to boost the economy by inducing production when gold was made rare in the market.
During the 1944 when most of the world was battling the Second World War, representatives of 44 allied nations met at Bretton Woods, New Hampshire, for a conference held between July 1 and July 22. Their goal was to establish an international monetary body which would ensure that there is a set monetary exchange system among nations at a pegged rate. This led to the establishment of the International Monetary Fund and the International Bank for Reconstruction and Development. Gold was at that time the dominating metal and as such was considered to be the basis of the international payment currency. At that time most of the European nations were in huge debt and they started transferring their gold to the United States. This made the US Dollar appreciate greatly. Thus in the later years the US dollar become the dominating currency. US dollar at that time was backed by Gold and an exchange rate on gold was determined which led to it becoming the preferred currency of exchange.
However major countries like France and England started selling of their US Dollar reserves and traded them for gold from the US treasury. This led to a considerable decrease in the power of the US dollar in the international market. Added to this was the considerable strain put on the US economy during the ongoing Vietnam war which lead to the then President Nixon to stop the full convertibility of the US dollar to gold. This was the trigger that upset the whole Bretton Woods system.
With the collapse of the Bretton Woods systems in USA in 1973 ordinary citizens were no longer under the ban to purchase bullion and or invest in it. The abolishment of private possession of gold completely came off in the year 1975. Similar bans were also in existence in UK and Japan which also came off in the years 1979 and 1973 respectively. The world over liberalization of the private purchase of gold lead to some countries becoming major exporters and the yellow metal. Countries like Turkey, where gold import was previously banned, saw its domestic, gold prices jump 85% following the lifting of the ban on imports.
Why the Gold Standard to some extent was advantageous
A significant reason for the Gold Standard to be successful is that it provides absolutely no chance of a hyperinflation. The reason is that gold is tied to the currency and as such until the whole stock of gold was increased additional money could not be printed. In the hindsight that is the very reason why the US economy could not come out of the great depression of 1929 rather quickly. Since the money was tied with the gold, the US government had to look for other opportunities and tried to attract the foreign investors who would bring in their investment in the form of gold. Interest rates were increased for the investors and that means higher and more prohibitive interest rates for the domestic borrowers.
Another important advantage of the gold standard is that excessive printing of cheap money can be prevented another anti inflationary method. This would ideally put the entire money in circulation into a fixed price with the gold in reserve and that evidently results in a pressure on the government to pay off the amount in gold when demanded; a deterrent for printing excess money.
All currencies of the world has been at one time of the other been formed from the base gold and silver metals. The reason that gold and silver became popular and is still valued and possessed as a means of investment is that gold and silver are the only real currency that the world has known that has survived the vagaries of millennia's of political and economic turmoil. They were of great intrinsic value unlike the paper currency and can be exchanged easily for commodities and are widely accepted. However in the last few hundred years or so, paper currency of "Fiat" currency as we call it has come into existence and has taken over. Paper currency when it first started off was attached to this base gold currency. People knew that the exchange rate was fixed and one can trade in confidence as they were backed by gold. The fact that they were later detached from gold and silver, made them lose their confidence in paper currency. Say you are trading eggs for $4 a dozen in Seattle on Monday. If the price of eggs increases to $5 a dozen on Thursday you will probably wonder whether you are dealing at the right price. It is the confidence in a paper currency that makes it work.
Why gold has been a popular method of savings
In the 1920's if you wanted to buy a new pair of trousers you needed probably $10. Whether you spend that using a $10 printed currency note or use a $10 worth of gold coin it was irrelevant. In 2011 if you want to buy a trouser, that same $10 gold coin will buy you the pair of trousers but the $10 printed note will be useless. The reason is gold has an intrinsic value. To a large extent the prices of gold and for that matter even silver has not seen a downward spiral even during the greatest of depressions. Sometimes though the price of gold has certainly swayed but the same can be said of all precious materials and other commodities. During the Gold Decree the price of gild was fixed at 35 dollars to an ounce. Even the purchase price before that was fixed at a little over 20 dollars. In both these cases the price was set by the government of US and not due to market dynamics. During the last great depression even when most of the stocks took a beating and some more than 70%, gold stocks increased to over 400% and gave dividends to their investors. The two largest gold producing mines in USA and Canada managed to do this which speaks volumes about the persistence and strength of gold in any market situation. Thus people have always preferred gold as a mode of savings. It is like saving their money securely which is not going to devalue over time and waiting till the investment weather is good for further diversification of the portfolio.
Another reason why gold is a good investment option is the diversity that it brings to the overall portfolio. An investment expert will never ask you to put all your money in a single stock or investment option because of the inherent risks that it brings to the portfolio. A diversification is required to spread the risks. Gold being a hard currency gives more intrinsic value to your portfolios and credibility to it.
A significant disadvantage of gold is that it does not give dividends and the price of gold during an inflationary process is what provides the increase in the investment. It is more of the safety and stability of the investment which encourages buying gold. The remarkable nature of both gold and silver.to hold their prices and remain steady even though there is a considerable price deflation all around means that when you invest in gold your investment though not necessarily going to provide an immediate return, will provide a considerable gain of wealth when your compare the prices after some time.
The comparative price of gold to other commodities in the market has always been better. The Dow Jones Industrial Average has always been competitive with the price of gold. Even during a depression, when the prices of all commodities have gone down, the price of gold which may not have increased to more than what you had paid for it in the first place, the comparative price is more than what other commodities are. This can be further explained using a small example. Imagine that today you have purchased 20 ounce of gold (this is just a comparison). If you wish to purchase a car, only about 10 ounce will buy you a luxurious sedan. However another few years of waiting and the same sedan can be bought for only 15 ounce of gold. This is because of the price of gold which has gone up significantly compared to the other products in the market.
One aspect of investing in gold, silver, platinum and palladium the main four precious metals that you can buy, is the storage costs that you need to take into consideration. Physically buying gold and storing them a location that is under your control is not advisable because of the inherent risks of it. As such when you open a holding account online or with a bank they will offer you the storage options at a nominal cost. When investing precious metals, the cost of storage is also to be taken into consideration. Any cost which is prohibitive for storage must be considered against the inherent gains that the holding will provide after a period of time. An estimated storage costs for holding gold is 0.015% from 1 to 49,999 gold grams stored in at London, Zurich or Hong Kong. The costs also include the insurance coverage against theft for the investment.
Comparatively the regular basic savings and other investments options would appear more attractive as they don't require storage costs, but the fact remains that their volatility in a negative market situation works to their disadvantage. A soft currency investment option is never a hard currency and lacks the intrinsic value that hard currency like gold, silver, palladium or platinum has. Thus when markets crash the inherent depreciates overnight and people lose their life's savings. Gold on the other hand is a reserve currency which is accepted under any market situation and as such a better option.
Gold crash vs. hyperinflation
Gold is one commodity that has always been looked with confidence by the investors. An interesting fact about gold is that there is not much of it in the market. As such if paper money becomes obsolete tomorrow and the only mode of accepted payment becomes gold or silver, then we the people who does not possess gold but only electronic balances of money, will have no where to go. If we rush to buy gold all the gold and silver and other precious metals would have been gone. So basically all our huge savings, investments and bonds will have vanished. A printed paper currency which is being produced in much quantity as required by the economy cannot be relied and the only thing that will matter when paper money fails is what you have in intrinsic value that is gold. One of my colleagues had once said me, "gold at $1000 a once, this is not a price one should invest into something." However the fact remains that it is not the price at the end of the day that counts, but the intrinsic value that you possess. Paper money in itself does not worth anything; gold does. Thus when paper money will become defunct, the only things that will remain of value are the precious metals.
Irrespective of that, gold prices have also suffered a price deviation. In recent years as during the depression of 2008, when commodity prices were going down and the real estate and financial markets crashed, people started to sell off their investment and hoard up the dollars. Even the price of the yellow metal, which was otherwise so popular, also went down. People started to sell of their gold investment and realize the investment in cash. This resulted in gold prices falling by about 30 percent in November of 2008 from the March 2008 price of $1000 per ounce.
A real possibility of gold crash could be if and when there is a sudden increase in the supply of gold in the market. Due to inherent rules of a demand and supply of any commodity in the market which drives the price of it, gold prices can severely depreciate if there is a significant rise of the supply of gold in the market. However for the last few decades there has not been a single discovery of a gold deposit that is easily accessible in an area where there is no conflict or political instability to encourage an increase of gold supply into the market. It is unlikely something of that sort happening in the near future.
There has been no dearth of speculation as to where the price of gold will reach in the next few years. The internet is abuzz with speculations and predictions. Some people have predicted a $3000 value per ounce for the precious metal not something that is entirely impossible. Other market experts have even predicted a $10,000 value of the yellow metal. However, it is any body's guess to predict which way gold prices are going to go.
Again some schools of opinion say that anything that is being traded and is consistently rising in price has the tendency to correct itself out at one point of time. Just like in a share market which has hundreds and thousands of companies listed and their shares traded. Evidently the shares being traded are only limited in numbers and the company's cannot keep adding more and more shares as they are being traded. Thus sooner rather than later a situation will arrive when the shares of the company's will rise to a level that no one will be able to invest in them. However nothing can simply go on increasing indefinitely and as such price will stall at one point of time. There will be a price fall after that. As soon as prices start to fall, people who have invested their life's savings will want to cash out and escape the tumbling share market. What follow is more sellers in the market than buyers. Prices will tumble and values will get eroded overnight. A once booming market will then be followed by a recession. Recession will follow simply because there will be less money in circulation. People who have lost their savings will have but no option but to hold on to what they have and thus the market will have significantly less demand for goods and services.
Hyperinflation has its own effects on the economy. A simple explanation of hyperinflation is when there is a large increase of money in the market which is not supported by the GDP of a country that means more purchasing power than can be supplied with the availability of goods and services, hyperinflation sets in such conditions. One way to explain a situation like this is by giving an example. Say there is a massive crop failure. Consumers need the goods but they are unable to buy it because of the minimal amount in supply. Thus the prices of the goods are going to go up.
In the modern world, governments of the world has the power to print money as they wish and that has been possible because of the absence of a pegged exchange rate to an object of intrinsic value. Thus in order to correct the problem of job cuts and to revive the economy, governments are spending billions of dollars. One would imagine that this would come from taxes but in an economy which is already reeling with absence of jobs and there is no real inkling of hope that jobs are getting back in drones, increased taxes will only add to the misery. Thus governments are resorting to other forms of funding which is to print more money. Indirectly they are also fuelling the inflationary forces.
An increasing price of gold can be attributed to a bubble that is being created because of the gold mania that we are currently experiencing. Some speculators are expecting gold prices to touch $5000 an ounce and every body seems to be coming out with a speculation of their own and the internet is abuzz these days. We are currently seeing the same kind of mania that we had before the economy took a down turn when the real estate markets crashed. Why would the gold price be a mania, you ask? Gold is in a relatively fixed amount of production. It is one metal that has a limited supply and the production is also limited based on the availability of the gold mines around the world. However contrary to the supply demand is ever increasing. We all know that gold has an intrinsic value and is along with other precious metals like silver, palladium or platinum is readily accepted world wide and is treated as a reserve currency. Even if all Fiat currencies fails to become confetti and the banks fail around the globe the real possession value of gold is not going to fail and it will continue to be accepted. Thus the understandable urge to possess gold as a reserve asset. However the supply of gold is not going to increase to the demand of the consumers and thus the prices will continue to be pushed beyond the limits of a common man. The same way when the property prices went on into a dizzying height and pushed the real consumers out of the market due to the influx of speculators and then crashed miserably when defaults started happening similarly gold prices will stall at a point. If it starts to go down as the market starts to correct itself, we can see a recession setting in or at least a bear market.
An improving job market and a strengthening dollar can see a correction in the gold prices as has been seen in the first quarter of the year. As per a report from the Bureau of Labor Statistics non farm payrolls have increased by 216,000 which is higher than the consensus expectation of 185,000. This immediately saw dip in the gold prices with investors cashing in on the yellow metal and migrating to stocks instead.
Investment in Gold via Dollar Cost Averaging
Since the intrinsic value of gold is never challenged and the fact remains that it is a true reserve currency to the world, an investment in gold at any point (unless it is going over the roof and is due to correct itself imminently) is a safe method to store your net values. One way to ensure that the value of gold your investing is averaged out and represents a lower end of the price rise is to employ a method of Dollar Cost averaging. You invest a fixed amount of money periodically over a fixed period of time. This in a rising gold price market initially will bring in more gold than the later investments. The benefits of this system is that over a period of time when the markets fluctuate, your investment is going to be marginalized and you will suffer less than if you had invested the entire amount in one go.
A lot of brokerage firms will offer this service using an automated debit system from your bank. That way you don't have to actually do the transactions manually and have to remember yourself to make the payment every time it is due. Else you can manually make the payment.
Purchasing Gold using Value Averaging
Gold has been one of the many and by and large a popular method of storing assets and values. It is one of the few precious metals which are rare and have an intrinsic value attached to it because of its rarity. This is what makes it more susceptible to fall back to when there is a market crash as we saw in 2008. Real estate was another such market but when the real estate market crashed devaluing values held in such assets, people had to fall back on the time tested yellow metal for salvation.
A lot of people have experimented using the Dollar Cost averaging and the Value Averaging methods of investing in the yellow metal. While we have discussed abut dollar cost averaging in the previous chapter, we will discuss about value averaging here. Value averaging is somewhat similar to dollar cost averaging, in terms of the over all approach of investing on a monthly basis. However it differs to the former by the fact that the investment is directly in proportion to the fluctuations that the investment has had in between the two investment dates. Say a person has invested in some stocks to the tune of $5000. He has set an amount of $100 for the investment to grow by the next month when the next investment date is. Say on the day the additional investment is to be made; the total price of his investment has increased to $5057. That means he has to make an additional investment of only $43 to raise his total investment to $5100. Similar to a dollar cost averaging method, in a market where the prices are increasing, one has to buy fewer shares and more when the prices are going down. The value wise difference between the two methods has not been too much in a same period of price fluctuations. This method can be gainfully used in the manner of investment into Gold. When the price is lower amount invested will buy more quantities of gold then when the price is higher. However over a reasonable period of time the cost of gold acquired will be marginalized reflecting a lower price.
Ways to invest in Gold and Silver
Gold can be purchased either as a physical holding of bullion, coins or jewelry or a stock held at a secured vault holding some where else. A lot of registered gold firms sell gold coins and bullion accepts applications. Ensure before investing in gold through one of these companies, to check with the better business bureau and find out more about the company and its background.
Find the current price of gold and silver over the phone and find out everything that you need to know before placing the order. Once you are satisfied place the order and confirm it when it is verified by either phone or email. Once the order is verified, make the payment using a wire transfer to check payment and wait for the confirmation of the purchase being made.
Rajib Mukherjee is a freelance article writer specializing on technology topics such as digital cameras and web technologies. He is also an avid traveler who loves to document his travels in his articles and through his lenses.
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The Gold Price Rose $37.10 this Week Closing at $1,751.40 Silver Up at $34.12

Gold Price Close Today : 1,751.40
Gold Price Close 16-Nov : 1,714.30
Change : 37.10 or 2.16%

Silver Price Close Today : 34.12
Silver Price Close 16-Nov : 32.36
Change : 1.76 or 5.44%

Gold Silver Ratio Today : 51.34
Gold Silver Ratio 16-Nov : 52.97
Change : -1.63 or -3.08%
source: http://gold.einnews.com

Wednesday, November 14, 2012

Gold industry in Arab countries

           

   Gold is particularly important in Arab societies as a manifestation of the richness and nobility of origin.
Therefore,Craftsmen made a great effort in the manufacture and innovation of decorations, molds and shapes to present the newest always.

using of gold not only for women, but extended  to men who also usedIn decorating swords, daggers, sticks and guns, etc. .. Of the things that men likes to keep and proud of it.

The gold industry is one of the few industries that are low trading,and monopolize its secrets a few craftsmen.Therefore, they are reticenting their activities, and prefer not to inform others about the secrets of their profession.

The gold industry is one of the industries that are inherited from parents to childrenThus, it's difficult for strangers to enter the world of industry shaping gold.

Gold industry stages

The industry is divided into two parts:

The first is  manual, and the other is called casting wax.
  

Manual manufacturing method 

It's beginning with a 24 carat's alloy gold or went broke, the material was a slug it may have a specific mathematical equation is converted to either 18 carat or 21 or 22,The gold which is went broke have treatment after  knowing the caliber number because it might be less caliber.Then caliber is adjusted according to demand. For example, the manufacturing process of manual ring begins with pulling wires on the machine in certain sizes and then taking dimensions and lengthsfor the desired ring.then given to the technician entrusted with the work of the ring by the graphics described  to him who shall begin work after chipping on request.

The piece are then delivered to the technician who is form it according to the existing design he has.Technician can also be performed to form a piece of his innovations and creations without being boundExisting fees has.

Stage install stones

After it is detected on the segment to show any comments are going to install the stones stage.
In the course of all this always we clean piece and refined in every stage of the work.
Until finally produces a beautiful piece later go to the final cleaning stage,and used inChemical cleaning process then go to the vibrator machine which gives itthe desired color.
Yellow gold has many degrees of color where each color is associated with a certain caliber of gold. there is a certain color for caliber No. 18 and another one for caliber No. 21 and another for 22-caliber.
and recently entered a modern colors, which is used to paint gold, Unlike traditional colors.
Piece then go to the stage of final monitoring and seal according to caliber before delivery to the customer.
The seal reflects the level of standard of gold that was 18 or 21 and this expresses the ratio of gold to copper in the segment.The less the amount of copper that increased the value of caliber and vice versa.
Seals forms vary by the manufacturer.These seals are manufactured in Italy often,but there are also other countries doing this manufacturing.

Tools used in the manufacturing process manual

 There are several tools used in the manufacturing and hand-decorated piece like the chainsaw which is used for cutting gold, and scissors to form pieces on request.
In manual manufacturing pieces is not copied but it always is manufactured according to customer's request and desire.

Casting wax

 The second method of manufacturing gold methods are modern casting method or casting wax,and its synthesized phases are:
 First the basbakh and is the work of the so-called basic piece which made of silver.
Then after passing all the previous manual phases are carried over into the department of wax ,this basic peice must be at a very high degree of cleanliness and precision that will beCopied multiple times later,before installing stones.
In manufacturing method wax is placed piece in piston Rabr even be compressed thermally.
The graphics are printed on Raber and Raber is a specific type of sponge.
this processIt takes about two hours until the fees and formations are printed , then the piece go to Wax machine.  
 The machine contains amount of wax works thermally by electricity and through which convertGraphics to wax and then we clean wax accurately, then we make so-called tree wax.
Then this tree is cleaned with a chemical-packed to remove dust from above because the presence of a very small percentage of moisture, dust or salts greatly affect the standard of gold and reduce it. 

The next stage is the stage of furnaces:

The stage furnaces is one of the most reliable and most serious stages in the manufacturing process where  the gold oven first dissolving the wax which leaves a void within the gypsum, which takes the form of a tree and then go template to burning furnace which has a temperature of 750 degrees Celsius or more, where are drying template so turns to a piece of fire inside the oven on all sides.
After a period of 4 to six hours inside a convection oven we prepare gold to be poured or formed by oven to liquid temperature 1150 ° C, where we quickly move the template from the oven heat to machine suction quickly and accurately and we then pouring liquid gold in less than a minute so as not to cool the mold or gold, and then we vacuum rapid air untilGold down quickly and permeates all the blanks in the template.
And then cleaning the mold of gypsum in a certain way and abstracted tree which is then cut up the tree and dismantling of art.
 Then pieces go to the smoothing section to remove polyps then begin to clean up itTechnician before and after cutting the pieces are cleaned in certain acids to remove impuritiesOf gypsum and others. And then comes the stage of assembly and installation pieces stoneBy special machine and then be given final shape and color the final.

Tuesday, November 6, 2012

What is Gold?


Native gold is an element and a mineral. It is highly prized by people because of its attractive color, resistance to tarnish and its many special properties - some of which are unique to gold. Its rarity, usefulness and desirability make it command a high price.

Trace amounts of gold are found almost everywhere but large deposits are found in only a few locations. Although there are about twenty different gold minerals all of them are quite rare. Therefore, most gold found in nature is in the form of the native metal.

Gold occurs in hydrothermal veins deposited by ascending solutions; as dissiminated particles through some sulfide deposits and in placer deposits.

Uses

Most of the gold that is newly consumed or recycled each year is used in the production of jewelry. About 10% is used in coinage or in the financial stores of governments. The remaining 12% is consumed in a wide range of other uses which include electronics, medicine, dentistry, computers, awards, pigments, guilding, and optics.

source:  http://geology.com