Cash for Gold Advice: Blog

Gold supply from the interior of the Earth

Sat, 13 Jun 2009 22:12:05 -0500

The search for the precious metal is becoming increasingly difficult. New deposits are hardly found. But there is evidence that depleted mines can fill again. Gold has never been so precious. The global demand has grown rapidly: Gold price has doubled in the past four years. Above all, Chinese and Indian jewelry manufacturers need more and more gold. Financial experts also expect more and more investors buy gold to their capital to protect against inflation. However, the replenishment falters: The search for gold is becoming increasingly difficult. New deposits are hardly found. A study now but nourishes the hope that gold reservoirs within a generation may renew (Science, vol 314, p. 288, 2006). The finiteness of the stocks is at issue. Geologists are constantly on the lookout for new deposits. But few places come into question. Gold is usually present in traces in the earth's crust and distributed combines extremely rarely with other substances. Only deep beneath volcanoes at high pressure is combined in water, under these conditions, hundreds of degrees hot, with hydrogen sulphide. The precious mixture occasionally opens the way towards the surface. As soon as the pressure or the water cools, falls the gold from the solution and collects in a so-called hydrothermal deposits on - in quartz veins, which are more than 100 kilometers long can be. Typically, it takes millions of years, until in this way constitutes a major reservoir - the scientists previously believed. But apparently can go much faster. On the island of Lihir in Papua New Guinea is an extinct volcano in the Ladolam-cut gold mine. Witches' Kitchen of the underworld More than a kilometer deep holes gave the New Zealand geologist Stuart Simmons and Kevin Brown insight into the underworld of the kitchen witches: they lowered probes into the depth and took samples of the flow solutions of gold rocks. The hot deep water transfer much more gold into the deposit as adopted, the researchers now report. The temperature difference between surface and depth they calculated the speed with which the solutions flow. Ladolam gold mine was within 55,000 years, from the deep water deposition, the researchers concluded - provided gold content and speed of the water were similar to earlier today. It was now that similar deposits formed within a few decades, says Christoph Heinrich of the ETH Zurich. Condition is merely that circulate less water than in the Ladolam mine, the gold content that is higher - and thus the precious metal could come off faster. One sixth of the gold as Ladolam reservoirs belongs to the type of ground-level, relatively cold storage facilities, which are much potassium. These deposits are now applied to find, says Hartwig Frimmel from the University of W�rzburg. Some could be virtually inexhaustible.

The hot end of the wedding rings

Sat, 13 Jun 2009 22:10:30 -0500

With Heraeus, one of the most important gold smelters in Europe, every ounce counts - the higher the prices of precious metals to rise, the more important is the recycling. The front teeth with gold crowns abgewetzten bears no engraving. The wedding also been scratched: Willi, 20 9. 1974 is pointed on the inside of the bracelet that says Ricarda H., the date is illegible. The jewelry and the teeth are waste, but still valuable. So valuable that their owners so that even in small quantities can earn good money. "We get a lot of containers full of such precious metals waste daily," says Thomas Lampert. They will be recycled to the contained gold, silver, platinum and palladium in Purity reclaim. Lampert worked at Heraeus in Hanau, Hesse, a leading precious metal processors in Europe. Pharmacist Wilhelm Carl Heraeus son had his 1856 in Einhorn-Apotheke the first in the world, a procedure developed in large quantities is very heat-resistant platinum at 1772 degrees Celsius to melt to bring. On this expertise in dealing with precious metals today, a company builds empire with 11,300 employees and 12 billion euro turnover. Lampert has the precious metal content of the waste and then determine again in several chemical processes separating into its components. "Cost center manager for the samples" they call his job here. This melts it daily without regard to form and Precious-metal home with a value of several hundred thousand euros, and it's pouring ingots. Since 26 years, handled the 44-year-old chemist with precious metals in the world. He is one of the most senior Goldeinschmelzer at Heraeus. 1100 tonnes of recycling old gold Lampert currently has very little to do. The prices of precious metals to rise ever higher. Recycling is an important part in the business of precious metals has become. As of 1981 chemists had his job, was the last great boom in precious metals just ended. The gold price had its record high in February 1980 at $ 870 per ounce almost halved, silver was just under $ 50 to less than $ 15 per oz and platinum fell, then as now the most valuable precious metal, costing less than 500 instead of the previous 1050 dollars. Thus played the recycling of gold in the next two decades, a minor role. "Today, even the chips after the evening Saubermachen consistently recycled," says Lampert. Rarity has its price The reduction of inventories in the soil is always difficult. In some cases there is only the precious metals in great depth, the Neugewinnung stagnant. In the past year included, for example, the total supply of gold around 4000 tonnes, 1100 tonnes, but originated in the old gold-recycling, and rising. Precious metals have over almost all other substances have the advantage that they do not rust and can not burn. They are therefore virtually non-perishable. "All per-sponsored gold of the world today an estimated 158000 tonnes. In the form of cubes, it would loose under the Brandenburg Gate fit," says Wolfgang Wrzesniok- Ro�bach, trade marketing manager at Heraeus. An analogue of the cube still rareren platinum metals would just weigh 9000 tonnes and therefore already "in a single place," says Wrzesniok. The rarity has its price. Because the demand, especially from emerging economies such as China, India and Russia has become significantly higher, while during the dollar crisis, especially the need for gold and silver for investment purposes grew, the increase of prices of publicly traded precious metals sharply. How much is a troy ounce of gold, equivalent to 31.1 grams, as nearly $ 800. A few weeks ago the price was even up to $ 845 hochgeschnellt. "Some people even bring their table and their silver Coin" Even platinum quoted at around $ 1440 per oz to 30 percent higher than at the beginning, since silver is just under 20 percent to last just under 15 dollars. Even for a gram of pure gold is now well for lunch, from one ounce to almost a month living expenses deny. No wonder that in the larger cities in virtually every shopping mall has become a place for buying precious metals will take place, usually with goldsmiths and jewelers. At Heraeus husband Lampert mainly commercial customers: jewelry manufacturers, banks, small precious metal dealer. They all usually deliver the material from which their customers leave them or they have sold. But private citizens are welcome, from 200 grams upwards, they are worn articles from Heraeus served. "Some people even bring their table and their silver coin collection," says the chemist and two other shows on this collection cups, which are otherwise rather large bakeries use will likely be in the industry. Overall, reminds many in the Department of sampling a large kitchen from the early 20th Century: The kitchen, with its cast-iron sideboard has three holes instead of the usual hot plates. Among them are appropriate melt and fuse from Tongrafit because only the "necessary for the smelting of precious metals needed unbearable heat," says Lampert. The Goldeinschmelzer is the case with the jewelry and the teeth on the old scale - 3.3 kilograms. "A few grams less than bars come out," he predicts. With a shovel carries the golden Lampert waste in the melt and fuse switches, and the induction to melt. The eddy currents, which is responsible for the heat and generate an unpleasant beep duration. This wasted the bulky mass with loud cracking buffer, and within two or three minutes in an orange-yellow soup. Estimated market value: Between 40,000 and 55,000 euros, depending on the purity of gold and the dollar exchange rate in which the market price for gold on the stock exchange is calculated. "The noises coming from the air, from the hollow as earrings as well as escapes of teeth and other organic components that burn," explains chemist Lampert and stir with a thick Kohlegrafitstab more gold in the soup. A pinch of sodium nitrate, "so that all impurities burn", red smoke is - finished. Lampert pours the contents of the Tigels into an ingot form. "The slag can then be chopped off, then we have a pure precious metals." Private no "gold Freak" The actual quality of the sample from the ingot jewelry gained an hour later, after the ingot is cooled. A few chips were to find some chemical separation processes to adequately supply their customers to pay. "This is strictly based on purity and market price," says Lampert. Once the metals are purchased, it must be the cost center head of the trading house reported. "All departments of the House over the risks posed by the holding of precious metals arise immediately to the trade," said Hans- Guenter Ritter, Managing Director of Heraeus metal trading company. A two-digit million amount Heraeus has in the past year alone from the purchase and sale of precious metals reached. "This year is extraordinary," says Knight, and play with it to further increases in precious metal prices. Only the precious treasures from Heraeus is in the balance sheet under assets declared with 460 million euros. Nevertheless, Thomas Lampert in the daily handling of so much of value left. When visiting the office safe, where heavy platinum kilo bars on wooden pallets are transported, he says: "I could not say that I am at home I have become gold Freak."

VAT - Gold or silver?

Sat, 13 Jun 2009 22:09:58 -0500

I want a small portion of my assets in crisis safely in gold and silver to create. When gold is not according to tax calculated on silver though. How does the VAT when sold out? Why this difference in treatment? Andreas R., Hamburg With the purchase of precious metals is generally subject to VAT when selling to a dealer or a bank, the customer receives only the net, so the price minus the VAT. For gold, the investment purposes, has been in force since early 2000 in all EU countries have been exempted from VAT. As a so-called investment gold are especially coins and bars with certain conditions - such as the fineness concerns - meet. This special provision is the "use of gold as a financial instrument to promote." Silver coins and silver bullion are subject to purchase on the other hand, the current VAT rate. There are exemptions for certain coins, for which the purchaser pays a reduced rate. This will be an annually updated list of the Ministry of Finance determines. Correlation between the dollar and gold price A simpler version, in the performance of precious metals to participate, it offers investors through exchange-traded certificates and Exchange Traded Funds (ETFs). These products represent the performance of the precious metal from 1:1. Precious note, however, usually in dollars. Investors who are in gold or silver to invest, should therefore always be aware that they are next to the precious metal also acquire U.S. dollars. Historically, it is especially when gold is a negative correlation, ie a contrasting development, between the dollar and gold price watch. For German investors, the investment is a long time a zero-sum game: If the gold price rose, the dollar fell to the same extent. Only in the past two to three years seems this relationship is no longer in this form to apply. We go long term, but assuming that the negative correlation between the price of gold and the dollar will continue - and would be exerted w�hrungsgesicherten Investment, a so-called Quanto Certificate with the preference.