'What’s Hot' Precious Metals: A Guide to Gold!

'What’s Hot' Precious Metals: A Guide to Gold!

If you’ve tuned in to our Radio Show Amazing Appraisals which airs live on WOR Radio every Sunday from 8-9pm you may have noticed our interesting segment called, ‘What’s Hot & What’s Not’. In our previous episode we talked about precious metals being Hot in today’s market! We will be breaking down our segment on precious metals into three parts. In today’s post we will be going in depth about Gold !


The most popular precious metals within society are gold, platinum, and silver. In the past, precious metals played a central role in the global economy because many currencies were either physically minted using precious metals or else backed by them, as in the case of the gold standard , today, however, investors purchase precious metals mainly as a financial asset. As an investment, precious metals are often sought after to diversify portfolios and as a store of value, particularly as a hedge against inflation and during times of financial uncertainty. For commercial buyers, precious metals may also be an essential component for products such as jewelry or electronics. There are crucial factors that influence the way the demand fluctuates towards these metals, some of those factors include concerns over financial stability, and fear of inflation.



Brief History of Gold
Thousands of years ago, the first documented sighting of gold was reportedly through a child who had spotted a shiny gold rock in a stream. The introduction of gold, shaped the culture of our world forever. Gold was encountered by many around the globe, through the natural dispersement of said metal in various geographic locations. Gold is the easiest of the metals to work. It occurs in a virtually pure and workable state, whereas most other metals tend to be found in ore-bodies that pose some difficulty in smelting. Gold’s early uses were no doubt ornamental, and its brilliance and permanence (it neither corrodes nor tarnishes) linked it to deities and royalty in early civilizations. Gold has always had value to humans, even before it was money. This is demonstrated by the extraordinary efforts made to obtain it. Prospecting for gold was a worldwide effort going back thousands of years, even before the first money in the form of gold coins appeared about 700 B.C.



Investing in Gold

The supply and demand for the buying and selling of gold, a major precious metal, is mainly due because it is considered a hedge against inflation, that is, it retains its value during bouts of inflation),one may buy gold if one thinks the inflation rate might accelerate. Conversely, one may sell goldif one is concerned about disinflation. The easiest way to gain exposure to gold is through the stock market, in which you can invest in actual gold bullion or the shares of gold-mining companies. Investing in gold bullion won't offer the leverage you would get from investing in gold-mining stocks. As the price of gold goes up, miners' higher profit margins can boost earnings exponentially. Suppose a mining company has a profit margin of $200 when the price of gold is $1000. If the price rises 10%, to $1100 an ounce, the operating margin of the gold miners goes up to $300 – a 50% increase.


Testing Gold

Gold might have a stamp with a particular purity mark, but it isn't always an accurate certification of its actual gold content. Some gold products of low quality have a false higher fineness marking. On top of this, there are gold-plated fakes filled with a different metal underneath the plating. Other times, you might have an unmarked piece of gold. To understand its actual value, you need to authenticate it. Through the use of various tests it can be simple to test your gold objects in the comfort of your own home. 


The Acid Test 

The Gold Acid Test is the most popular and accurate home gold test. This is because most acids may harm or damage only fake materials. However, make sure to perform the acid test only if your item was identified as non-magnetic. This helps to avoid any unnecessary expenses and actions. Additionally, take into consideration to carry out the acid test only on pieces that you won’t mind scratching/damaging. Or, items that you will not sell for aesthetic value. Also, be prepared to properly dispose of (or store) your acids after use.


Weight & Size Test 

This test is ideal if you own bullion coins and want to check the size and weight of your gold. Gold bullion coins are a specific weight and size, made to certain specifications. This will give you a starting point to ensure the authenticity of your gold coin. Since gold is among the densest materials in the world, its weight is very hard to replicate.  Real gold will be less compact. Counterfeiters will need more of the material to replicate the actual weight of gold. You should know what your gold coin is supposed to weigh, as well as its diameter and thickness. Simply weigh and measure your piece. This will help you to more easily spot real vs fake gold when knowing the specifications and checking to see if the coin matches said features.




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