Common Weights of modern gold bullion bars: 1, 5, 10, 25, 50 and 100 oz (troy ounces)
Common Weights of modern gold bullion coins: 1 oz, 1/2 oz, 1/4 oz, 1/10 and 1/20 oz.
Coins are usually a special alloy. The added metals make the surface harder and protect the shape from deformation since gold and silver are soft wearable metals.
Electrum - This naturally occurring alloy of approximately 75% gold with 25% silver and copper and other metals was used for the earliest coins struck in Lydia around 700 BC. The name electrum is also used for an artificial alloy such as used for coins in the Merovingian Dynasty of the Kingdom of the Franks around 600 - 700 AD.
Electrum has been found in privately minted coinage touted as “native US gold” during the California Gold Rush.
A gold coin is a coin made mostly or entirely of gold. Gold has been used for coins practically since the invention of coinage, originally because of gold's intrinsic value. In modern times, most gold coins are intended either to be sold to collectors, or to be used as bullion coins - coins whose nominal value is irrelevant and which serve primarily as a method of investing in gold.
Gold has been used as money for many reasons. It is “Fungible“, meaning that it can be traded easily, with a low spread between the prices to buy and sell. Gold is also easily transportable, as it has a high value to weight ratio, compared to other commodities, such as silver. Gold can be divided into smaller units, without destroying its value; it can also be melted into ingots, and re-coined. The density of gold is higher than most other metals, making it difficult to pass counterfeits. Gold is extremely un-reactive. The scarcity of gold is one reason it has a high price..
Electrum was the metal used in some of the world’s first coins, a naturally occurring pale yellow mixture of gold and silver. Smiths apparently further alloyed the electrum with silver and copper. The following are two different stories about “the world’s first gold/electrum coin“.
A. King Croesus, ruler of Lydia (560–546 BC), began issuing for general circulation the first true gold coin with a standardized purity. The electrum of those crudely rafted coins is similar to placer deposits in the alluvium of the Pactolus River.
B. World's first coin made with electrum is the Lydian “Trite”, size: 13x10x4 mm, weighing 4.71 grams. It was made circa 610-600 BC by edict of King Alyattes in Sardis, Lydia, Asia Minor (present-day Turkey), It is in all likelihood the world's first minted coin. The coin type consists of about 55 percent gold, 43 percent silver, 2 percent copper, and trace amounts of lead and iron, with the later variety consisting of slightly lower gold and higher silver, based upon analyses of these coins by a number of different researchers.
Fineness is the actual gold content in an item such as a medallion, coin or bar. It is measured as weight in troy ounces or grams.
Medallions are minted items that are not Currency. They can be commemorative, collectables even made by non-government mints.
Mint is a regulated word that applies to only a specific type and method of manufacturing - high pressure stamping an image on metal for an ascribed value of money or collection.
One Karat = 1/24th of a whole. Imagine a pie chart of 24 equal parts. Gold in jewelry and other items is often alloyed to increase strength, durability and/or color. The amount of gold by weight as a ratio to the other elements of the whole metal alloy is measured in karats, a unit of weight related to the fineness of the gold, the purity of gold related to the other elements of the composition.
KARAT WEIGHT to FINENESS CONVERSION TABLE
v Karats of Gold _______ v Karats of Other Elements ___________
24 = 24/24 = 1000 fine + 0 [24 + 0 = 24]_100.0% of content is gold
23 = 23/24 = 958.3 fine + 1 [23 + 1 = 24]__95.83% purity of gold
22 = 22/24 = 916.6 fine + 2 [22 + 2 = 24]__91.66% of object is gold
21 = 21/24 = 875.0 fine + 3 [21 + 3 = 24]__87.50% of content is Au
20 = 20/24 = 833.3 fine + 4 [20 + 4 = 24]__83.33% purity of Au
18 = 18/24 = 750.0 fine + 6 [18 + 6 = 24]__75.00% of content is Au
16 = 16/24 = 666.7 fine + 8 [16 + 8 = 24]__66.67% of object is gold
14 = 14/24 = 583.3 fine +10 [14 + 10 = 24]__58.33% gold purity
10 = 10/24 = 416.6 fine +14 [10 + 14 = 24]__41.6% of object is gold
Fineness can be expressed as a percent (decimal point is moved two places to the right). For example, a gold coin with
0.925 fineness = 92.5% pure gold
0.900 fineness = 90.0% pure gold
0.850 fineness = 85.0% pure gold
Fineness is not the only way to value a coin. Another factor is the “grade” of the coin - a visual evaluation of the amount of wear on a coin. The lesser the wear, the higher the grade, the higher the value. More wear - less value.
Rarity is another factor of the value - Rare Coins with wear can be more valuable than high grade coins with a wide issue.
The labels “Collectable”, “Numismatic” and “Rare Coin” can imply a system of increasing of value.
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\\+// COUNTERFEITS & KNOW WHAT IS REAL
Tungsten is an element that has a density similar to gold. Their atomic weights are close. Lead (Pb) is heavier. Fortunately making an alloy of gold and tungsten does not work for several reasons. A bullion counterfeit with tungsten in the center and thick gold plating possibly might not be detected by only density measurement. Modern ways to detect numismatic counterfeits is to compare weight, color and size with authentic collector pieces. An old practice to test whether a gold coin was counterfeit was to bite down on it, since pure gold is relatively soft. Base metals mixed with gold will harden the alloy making it harder to bite. Destructive testing such as drilling will decrease the numismatic value of an item if it turns out to be real. The tester would be responsible for changing the value.
Recent technology includes x-ray devices looking like an automotive timing light gun that detect the elements in a material. The x-rays however penetrate only a shallow distance, hence they might not be effective for validating 60 pound gold brick ingots made around the era of the US Civil War. A way to minimize the risk of owning something with a low cost center is to accept precious metal shapes that are poured in small forms such as nuggets, pencils, thin or flat pieces.
The cost to make counterfeit non-numismatic coins is typically more expensive than the value of the real coins, so counterfeiting circulating coins is rare. Metal as money
Innov-X has reinvented on-site analysis with the DELTA line; a new breed of handheld XRF. The DELTA analyzers feature large area silicon drift detector technology, and unique 4W, 200µA (max) x-ray tubes for maximized accuracy and precision.
DELTA analyzers are also fully industrialized tools with rapid testing speed. (In a trade show, the hand-held device analyzed the elements in the ink and paper of a poster in like a second. Be careful where pointing the gun, since x-rays continue till meeting an object denser than people.) The device is intended for use in the outdoors when prospecting. There may be systems with a protective box for indoor use specifically for numismatic use.
