Archive for the ‘Miscellaneous’ Category

Alluvial Gold Dust

We have recently been contacted by a member of the public who’s been offered for sale a quantity of Alluvial Gold Dust. Wanting to know whether the offer was genuine, they contacted us for advice.

Here’s the original e-mail they received:

GOLD AND DIAMOND FOR SELL

It’s my pleasure contacting you to inform you about our product “Alluvial Diamond and Gold Dust”. I am a Gold and Diamond Dealer here in Cote D’Ivoire, Ghana and London.

We are having in stock right now 450kg of Alluvial Gold Dust advertising to seek of buyers assistance in helping us buy Gold Dust Or Diamond and sale on her own location.

Our F.C.O is described as follows:

Commodity: Au Metal Quantity – 450kg
Quality: 22+ carat
Purity: 96%
Price: $25,000 US Dollars/kg
Shipment: By Air
Package: Export Carton Case.

Terms and Condition: I will be very grateful if you can come down here and do inspection of the goods properly before we commence shipment. I agree to follow the lot with you to your country and get paid after the final assay and refinery in your own location here in Cote D’Ivoire, Ghana, Or London. I Mr. ###, From Abidjan, Cote D’Ivoire in West Africa.

What is Alluvial Gold Dust?

The term ‘Alluvial’ is used to describe:

A deposition of sediment over a long period of time by a river; an alluvial layer.
Source: wiktionary.org

Or, to put it in simple terms, river mud.

Now, on the face of it, this ‘offer’ looks quite attractive. 450kg of 22ct gold, albeit in ‘dust’ form, would be worth somewhere in the region of £10.5 million. An opportunity for an investor to make a healthy profit perhaps?

Well, no, of course not.

Bear in mind that a typical gold mine will yield somewhere in the region of 3 grams of gold for every ton of rock excavated. They wouldn’t be going to all this effort if they could dredge river mud and yield a higher return! Anyone with a source of gold at this purity wouldn’t need to be hawking it on the Internet.

Our advice, please steer well clear of these e-mails. We receive similar correspondence every day, all of which is filed in our ’spam’ folder.

Remember the old adage – if it’s too good to be true, it probably is.

July 9th, 2010 2 Comments » Miscellaneous |

Interesting Facts About Silver

Bar of SilverOne of the best known precious metals, Silver has a rich history.  Silver has been used by man for thousands of years and, in ancient times, it was considered to be the second most valuable precious metal with Gold being the first. This is very interesting when you consider that the value of silver has never achieved a price of more than 1/10th of the gold price.

Silver has the chemical symbol Ag, a shortened form of its Latin name, Argentum, which has been translated to mean “white” or “shiny”. The word ‘Silver’ originates from the old English Anglo-Saxon word ’seolfor’.

Silver in the Holy Books

While silver was largely used for ornaments, jewellery and utensils, it has also been used for trade currencies.  The biblical account of Jesus Christ’s betrayal remarks that Judas Iscariot betrayed Christ for 30 pieces of silver, the book of Genesis describes silver as already being used by early people and countless other biblical and historical references point to trading being handled with silver as the currency from the fourth millennium B.C. Silver also found it’s place into non Christian religious records. The Muslim holy man, Muhammad, is said to have worn a silver signet ring, making silver jewellery one of the few accepted forms of ornamentation for men of the Islamic faith.

The Ancient & Antibacterial Properties of Silver

Since silver possesses antibacterial properties, it has been used for medicinal purposes since the time of the Ancient Greeks. The Ancient Greek and Roman people used silver to prevent infection and the stability of the Roman economy was dependent upon the supplies of silver that were mined at a rate of about 200 tonnes per year, creating a Roman silver supply of nearly 10,000 tonnes in the 2nd century A.D.

During the Middle Ages, the antibacterial properties of silver were also used to disinfect water supplies and protect food supplies during long term storage. Around this same time period, the European people also developed the technique of using silver for the treatment of burn and wound victims, using the silver as a dressing for their injuries.

By the 19th century, sailors had discovered that placing silver coins into the barrels of water and wine they carried would keep these perishable commodities pure from contamination by bacteria, a trick that was then adopted by the early settlers of the American west.  In fact, this use for silver has proven to be so effective that, in 1920, the U.S. Food & Drug Administration (US FDA) approved silver solutions as food safe antibacterial agents.

The Current Uses of Silver

Although modern man still uses silver for its traditional usage in jewellery, ornaments, silverware, tableware and coins, we haven’t stopped with just the common uses. Modern science has also discovered the uses of silver for the manufacture of mirrors, clothing, electrical circuitry, photography, dentistry and medical uses, as well as its catalytic properties which lead to silvers use in control rods for nuclear reactors and industrial applications.

The high electrical conductivity of this metal has made it useful for electrical applications, particularly audio cables, but it has largely been avoided due to high cost and the problems associated with tarnishing, the oxidation of silver when it comes into contact with air or water containing ozone, sulfur or hydrogen sulfide. Despite these detractors, 13,540 tonnes of silver were used to build magnets during World War II for the process of enriching uranium because of the short supply of the more economical copper.

Where is silver found?

While silver is found on every continent of the world, the majority of silver being mined today is found in Peru and Mexico, where the metal has been mined since 1546.

Silver is found in its pure form in nature. It also can be found alloyed with gold and other metals or in the presence of minerals, such as argentite and chlorargyrite. Most of the silver being mined today is a by-product of the production and refining process of other metals, such as copper, gold, lead, and zinc.

Some Interesting Facts About Silver

  • The element Silver is classified as a “Transition Metal”, located in Groups 3 – 12 of the Periodic Table. A Transition Metal is ductile, malleable, and able to conduct electricity and heat.
  • The atomic number for silver is 47 and its atomic mass is 107.8682 amu. A cubic centimetre of pure silver weighs 10.5 grams (0.3704 ounces, 0.3376 troy ounces).
  • Silver melts at 961.93°C and boils at 2212.0°C.
  • The modern Olympic Gold Metal is actually made of Sterling Silver which is then plated with 6 grams of pure gold.
  • British silver coins minted before 1920 are Sterling silver. Coins minted between 1920 and 1946 contain 50% silver.
  • Silver is not toxic but almost all of the silver salts are poisonous.
  • Silver Iodide is used to seed clouds, a process used to bring rain to dry regions in times of drought.
  • Some mirrors are made by a process called silvering glass. As a byproduct of this process, silver fulminate is sometimes produced. Silver fulminate is a very powerful explosive.
  • Sterling Silver has a purity of 92.5%. Items made of sterling silver are stamped with the word, Sterling, the number, 925, or a combination of the two.
  • The transitional lenses in your eye glasses are made with silver halide. These lenses can change light transmission from 96% to 22% in less than one minute and they effectively block 97% of the damaging ultraviolet rays from sunlight. This changes can be reversed over and over again.
  • Silver is used in the production of cloth that is resistant to the effects of mildew and bacteria.
  • It also possesses the highest thermal and electrical conductivity of any known metal.
  • Approx 20,000 tons of silver is minded every year.
  • Silver is used to represent the twenty-fifth wedding anniversary.

Other relevant pages about silver:

July 5th, 2010 No Comments » Miscellaneous |

American Cash for Gold companies face new legislation

While the Office of Fair Trading (OFT) continue to investigate the business practices of five unamed cash for gold companies in the UK, it is interesting to note that the US Federal Trade Commission (FTC) are looking to introduce new legislation to regulate the online gold buying industry in America.

In the USA, most cash for gold companies operate in a similar fashion to the companies you see advertising on UK television screens. There’s no indication given of what your gold is worth BEFORE you send it off and once you find out what the company is paying you, it can be difficult (sometimes impossible) to reject the offer.

Under new legislation proposed by Representative Anthony Weiner of New York in January 2010,  the US online gold buying industry could see some major restructuring to resolve this and other issues. The proposed legislation is called the Fair Deal Act and its main component is the institution of a policy where sellers would have the opportunity to review the offers made by gold buyers before agreeing to the price. Included in this legislation is the provision that the gold buyer must also insure the packages when returning items when the offer was rejected.

Whilst no similar legislation will be introduced in the UK following the OFT investigation, it underlines the need for consumers to do their research and make sure they’re making an informed decision, prior to sending off their gold.

  1. No matter what the marketing hype states, if a cash for gold company doesn’t quote their genuine (not estimated) scrap gold prices, DO NOT deal with them.
  2. Check the company’s small print. Are there any hidden fees? Are their quoted prices for hallmarked and non-hallmarked gold?
  3. Are the quoted prices guaranteed? What happens if the gold market drops while your package is in transit?
  4. If you change your mind, does the company offer a quick and simple return policy?

Gold-Traders (UK) Ltd offers an ethical cash for gold service to customers in the UK. We publish our scrap gold prices and update them on a regular basis.

To value your unwanted gold, use our calculator in the right-hand column of this page to select the purity (carat) and the weight (in grams).

June 29th, 2010 No Comments » Miscellaneous |

Scrap Value for the World’s Largest Gold Coin

The world's largest gold bullion coinThe world’s largest gold bullion coin, a one million dollar Canadian Maple Leaf has sold at action for its melt value of 3.27 million Euros (£2.6 million / $4.02 million).

Just 5 million-dollar Maple Leaf coins have been produced. Weiging-in at 100kg, its purity is 99.999%, the purest gold available. The coin is 53cm in diameter and 3cm thick. One identical coin is owned by Queen Elizabeth.

The coin was auctioned at Dorotheum Auctioneers after its previous owner, AvW Invest went into administration in May. It was snapped-up by ORO Direct, a Spanish gold trading company.

There were no counter-bids and the coin essentially sold for it’s scrap value!

Following the sale, a spokeman for ORO Direct stated: “We already made a nice profit because the gold price increased this afternoon.”

June 28th, 2010 No Comments » Miscellaneous |

5 Cash for Gold tricks the OFT should be investigating

Back in January, I blogged that 5 unnamed cash for gold companies were facing an Office of Fair Trading enquiry. Although there is no indication of which companies are facing scrutiny, it’s almost certain that a number, if not all, are the high profile companies who advertise prominently on daytime terrestrial and satellite TV.

Does the OFT have the power to ban shady business tactics? Unfortunately not. Their remit is to enforce consumer protection and ensure traders are trading fairly. Where unfair practices are identified, legal redress can be sought against an offending company.

It is understood that an initial OFT report is due to be published imminently. While we wait for their report, here are 5 cash for gold tricks I would like to see stamped out.

Ban ‘We pay x% more’ statements

Usually found on cash for gold sites that don’t publish their rates, these claims are so misleading. ‘We pay 15% more!‘ 15% more of what?! 15% of nothing, is nothing! If a cash for gold company is only paying 20% of market value (yes, the worst offenders in the business really do pay at this rate), an extra 15% on top isn’t going to make that much difference to the poor rate.

Ban ‘refining fees’

This is so misleading. You visit a cash for gold web site and see a price-per-gram figure quoted in a large font. The price looks good, so you send your gold to the company. What you missed was the small print that states a refining is deducted from price you saw quoted.

Ban testing and admin fees

More hidden fees, usually tucked away in the small print. You’ve sent your items to a cash for gold company that looks to be paying good rates, but have unwittingly sent something that isn’t gold. It’s an easy mistake to make for a consumer – how are you to know whether your bangle is 9ct gold, gold plated, rolled gold or 9ct gold filled?

As a result of your ‘mistake’ you get hit with a £15 ‘testing fee’. Worse still, if you ask for your items to be returned, the small print might state that you’ll be charged a further £15 ‘administration fee’.

All businesses have running costs and need to enure they’re profitable – fair enough. However, it’s patently unfair to hide such fees from the consumer.

Publish the scrap gold prices

OK, this is something I want to see enforced, not banned. Consumers need to be able to make an informed decision, BEFORE they send their gold away. This is only possible if they know what the gold price, per gram a company is currently paying. Of course, the companies who advertise on TV won’t do this – so much of their revenue is tied-up in advertising costs, they wouldn’t want you to know, up-front, how much of a poor deal you’ll get.

Return of items within 48 hours

There are lots of horror storries on complaints board and forum web sites about this. After being promised ‘top rates’, you send your gold to a cash for gold company. They offer you a price which you know to be way too low. You reject the offer, they may increase their price (still too low) and you request the return of your items.

Now you wait for the return of your gold… Sometimes for weeks on end. Some consumers cave-in and agree to sell their gold at the low rate they’ve been offered. There are reports of people waiting 6 – 8 weeks before their gold is returned and only after they’ve continually called the company, sometime having to threaten legal action.

48 hours is more than long enough for any company to arrange the return of a customer’s gold. It’s a no-brainer really. If a customer has been trusting enough to send their valuables off in the first place, the least a company can do is return them in a timely manner, fully insured, at no charge.

So, that’s my list of cash for gold tricks I’d like to see wiped-out. Have you been caught out? What are your opinions?

June 17th, 2010 2 Comments » Miscellaneous |