Saturday, November 21, 2009

Testing jewelry

Testing gold and silver can be tricky. Its not as simple as pouring acid - it requires expertise in judgement that is gained with experience over time.


Arkansas stone, acid and a loop are a must for testing.


After rubbing some gold jewelry, we have to add the acid.


Within a few seconds of the acid on the strips shows us some very strong, and some pale.


After a full minute you can tell the item on the right has no 14K in it. See how the gold stays strong in the other 2 strips.


This testing works for silver too. But make sure to rub the item hard so you can test it accurately.


Various silver rings have been rubbed, some marked and some not marked.


Within seconds of the acid, we are looking for the one paling fastest.


And while 1, 2 and 3 stay good, 4 has paled out.


What a silver item will look when tested.


What an item that has no silver content looks like when tested.


Saturday, November 14, 2009

Has the world seen the peak in gold production?


This week, the President of the largest gold mining and production company, Barrick Gold, noted that after ten years of declining production it is time to recognize that the world has seen the peak in gold production.

As the chart above from the World Gold Council shows, global gold mining production has declined since 2000.
Now what has been mined so far pretty much still exists as gold is virtually indestructible and exists in some form or the other. And that means gold from a very, very long time ago still exists.

Gold has been mined for centuries, starting during the time of the Egyptians from 2000 BC. But when you look at the total estimates of gold mined over the centuries, the bulk appears to have been mined after 1950. The bulk of this recent production came from Africa.

But output is down, especially this decade.

The biggest miner for the past few decades had been South Africa alone but in 2008 according to the US Geological Survey, the top spot was taken over by China relegating South Africa to number 2.

The top gold producing countries in 2008 were:
China - 295
S. Africa - 250
USA - 230
Australia - 225
Peru - 175
Russia - 165
Canada - 100
Source: http://minerals.usgs.gov/minerals/pubs/commodity/gold/mcs-2009-gold.pdf
Data in metric tons (One metric ton (1,000 kilograms) = 32,150.7 troy ounces)

The demand for gold falls in the categories of:

 - Jewelry
 - Investment
 - Industrial

The supply of gold comes mainly from:
Now if the production is diminishing, and the demand is still increasing, and add to that the fact that gold is virtually indestructible, we will have higher gold prices moving ahead. There is no way around it unless we declare we have found gold on the moon.

Even if the demand for gold in jewelry decreases, I can certainly say demand for gold in investments will rise enough to keep overall demand for gold up for the coming years. Which translates to high gold prices for existing gold, which is gold the consumer has in the form of jewelry. After all, it is this gold that is melted and refined into bars and bullions that is bought as investments by individuals, banks and countries.


Peak Gold: Yearly Gold Production Is Now On A Permanent Downwards Slope

Yesterday the President of the largest gold mining and production company, Barrick Gold, noted that after ten years of declining production it is time to recognize that the world has seen the peak in gold production. To maintain production ore is being mined with increasingly less gold in it. (The grade of the ore, or metal content, defines whether it is profitable to mine.)


Read on...

Peak Gold: Yearly Gold Production Is Now On A Permanent Downwards Slope

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Saturday, November 7, 2009

When is a Quarter worth more that $0.25?

American Silver Quarter 1935



Now what kind of a question is that...how can a Quarter be worth more than 25 cents?
Well, it can be.

How you ask?
Well, here goes...
- When it is a silver coin
- When it is minted in 1964 and prior
- When the silver coin is in fair condition


There are many buyers for these coins...avid coin collectors, novice collectors, hobbyists, numismatists or precious metal buyers like us, Turn It To Cash. Coins have always been collected, or should I say, hoarded as they appear to hold value over time. Centuries ago, that was being done and the proof is in the treasures found from the sea full of gold and or silver coins. Now people buy minted gold and or silver coins and bullion...India just bought 200 tons of gold this past week! 200 tons!!!

Reason enough for you to go through the piggy bank my friends. We buy US silver coins in dime, quarter and half dollars minted in 1964 and prior....and will pay you more than the dime, quarter and half dollar you hold. You get paid on the spot!
American Silver Quarter 1964


The US coins minted after 1965 are not silver, so that quarter will bring you just 25 cents...use that in the vending machine:)