Gold is the oldest precious metal known to man and for thousands of years it has been valued as a global currency, a commodity, an investment and simply an object of beauty.
Major Characteristics
- Gold (Chemical Symbol-Au) is primarily a monetary asset and partly a commodity.
- Gold is the world’s oldest international currency.
- Gold is an important element of global monetary reserves.
- With regards to investment value, more than two-thirds of gold’s total accumulated holdings is with central banks’ reserves, private players, and held in the form of high-karat jewellery.
- Less than one-third of gold’s total accumulated holdings are used as “commodity” for jewellery in the western markets and industry.
Global Scenario
- London is the world’s biggest clearinghouse.
- New York is the home of gold futures trading.
- Zurich is a physical turntable.
- Istanbul, Dubai and Hong Kong are doorways to important consuming regions.
- Tokyo, where TOCOM sets the mood of Japan.
Factors Influencing the Market
- Above ground supply of gold from central bank’s sale, reclaimed scrap, and official gold loans.
- Hedging interest of producers/miners.
- World macroeconomic factors such as the US Dollar and interest rate, and economic events.
- Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices.
- In Singapore, gold demand is also determined to a large extent by its price level and volatility.
Measurement Weight Conversion Table
| Convert from | Convert To | Multiply by |
|---|---|---|
| Troy ounces | Grams | 31.1035 |
| Million ounces | Tonnes | 31.1035 |
| Grams | Troy ounces | 0.0321507 |
| Kilograms | Troy ounces | 32.1507 |
| Tonnes | Troy ounces | 32,150.70 |
| Kilograms | Tolas | 85.755 |
| Kilograms | Taels | 26.7172 |
| Kilograms | Bahts | 68.41 |
| Troy ounces | Grains | 480.00 |
| Troy ounces | Avoirdupois ounces | 1.09714 |
| Troy ounces | Penny weights | 20.00 |
| Avoirdupois ounces | Troy ounces | 0.911458 |
| Short tonne | Metric tonne | 0.9072 |
Purity
- Gold purity is measured in terms of karat and fineness:
- Karat: pure gold is defined as 24 karat
- Fineness: parts per thousand Thus, 18 karat = 18/24 of 1,000 parts = 750 fineness