Gold Jewelry FAQs
What is the gold futures market?
In the gold bullion futures market, the buyers—speculators and big industrial users—are people who expect the price of gold to rise. Working through a broker, they put up 10% of the purchase price and get a contract for delivery at a future date up to 18 months away. Sellers are people who expect the price to fall.
In the United States the ownership of gold (except in jewelry, dental fillings and a few other nonmonetary forms) has been illegal since 1933 when the country abandoned gold as the standard for currency. Speculators in futures get around this by disposing of the commodity without ever taking delivery. The holder of a gold futures contract holds, and eventually sells, a piece of paper—comparable to investors in gold-mining companies who are permitted by the Treasury to handle their stock certificates.What is free-market gold?
Free-market gold is defined as the bullion not held in monetary reserves but used for industrial purposes and speculation.How is the purest gold jewelry defined?
Pure gold jewelry is stamped with 24K. This refers to the amount of karats which is a measurement of the weight of gold. Jewelers in countries other than the U.S. might use a slightly different stamping system:
• 100% = 999 Fine = 24K
• 91.7% = 917 Fine = 22K
• 75.0% = 750 Fine = 18K
• 58.3% = 583 Fine = 14K
• 41.6% = 416 Fine = 10K
Gold Jewelry | Earrings | Learning Center | Site Map | Links | Contact | Home
©