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Posted on October 24, 2007 by Jason Petrina | Posted under Jewelry
Gold: Starting A Collection
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If you are considering collecting gold, especially for financial reasons, there are a few things you should know before beginning your collection. This include a complete understanding of the terms used in the gold market. One of the most common terms you will hear in connection with gold is the word assay. This term refers to the process of testing gold for purity. You may also frequently run across the word bouillon. This term refers to refined gold that is at least 99.5% pure. Usually this type of gold will be in the form of gold bars, although it may also be presented in wafers. This is somewhat different than a bouillon coin, which is a legal tender coin. The value of this type of coin lies in the actual content of gold present in the coin rather than the face value of the coin, unlike some types of legal tender. Some coins are given a face value to denote the value of the coin; however. The American Gold Eagle has a face value of $50, for example. The marks on a gold bar are referred to a hallmark; which indicates not only the producer of the gold but several other factors as well such as the fineness of the gold. In terms of economics, you may hear the term gold standard. This term basically refers to the commitment to back up a paper currency with convertible gold. Several measurement terms are used to describe the weight of gold. One of the earliest terms used to describe gold weight is called a grain. One grain is equal to 0.0648 grams. Of course, most people are quite familiar with the term karat. This actually does not refer to measurement but more to the fineness of the gold and is measured on a scale from one to twenty-four. The most common rates are 10, 14 and 18. 24 karat gold is pure gold and contains at least 999 parts of gold per 1000. 18 karat gold contains 750 parts of gold per 1000 while the remainder of the 1000 is made up of 250 alloys. A kilo bar of gold represents a gold bar that weights one kilogram. If you are collecting for the purposes of rarity, another term tat you may frequently hear is numismatic. This term refers to coins that are valued for the beauty and rarity rather than the actual face value or content value of the gold. Due to the fact that the value of this type of gold coin can be subjective, these coins tend to be valued higher than bouillon coins. When collecting these types of coins you should understand the difference between the original rare coin and what is known as a restrike. A restrike coin is an exact replica of a coin that has been previously minted. At times governments will produce restrikes of such coins; however, they generally will not be as valuable as the original because they are not as rare. About The Author: Jason Petrina is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com |
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