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Introduction
The purpose of this program is to help you – the sales executive to increase sales of gold jewellery. Like any other luxury good, gold sells most successfully in the appropriate atmosphere It is atmosphere. important you understand both the product and the customer’s motivation for buying.

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Agenda – Module 1
– – – – – – – – – – Introduction to WGC About Gold Mining f Gold Mi i of G ld Caratage of Gold Colours of Gold Finishes in Gold Manufacturing techniques Assaying & Hallmarking Importance of Gold in the Indian context Other applications of gold

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and holding of gold. 4 . the World Gold Council is an organisation formed and funded by the world's leading gold mining companies with the aim of stimulating and maximising the demand for.The World Gold Council Founded in 1987.

helping to develop distribution systems and promoting the role of gold as a reserve asset in the official sector sector. Apart p important g from undertaking marketing initiatives to drive demand. Singapore 8. London (Headquarters) 2. Shanghai 6. Chennai 4. the World Gold Council is also instrumental in working to lower regulatory barriers to the widespread ownership of gold products. WGC has offices in 10 most p gold markets. 8 Dubai 9. Istanbul 10.New York 5 .The World Gold Council With headquarters in London. Beijing 5. 1. Tokyo 7. Mumbai 3.

we are not directly involved in any specific gold production/ trading/ dealing/ broking activities. whilst we aim to inform.Can I buy gold or sell gold through the WGC? World Gold Council is a marketing organisation focused p g gold in all its on promoting g forms and. 6 . educate and support the wider investment community regarding gold as an asset.

and in jewellery since the beginning of recorded history. • It is a highly sought-after precious metal which has been used as money a store of value money.About gold… • Gold is a chemical element with the symbol Au from its Latin name Aurum Aurum. 7 .

About gold… • The metal occurs as nuggets or grains in rocks. underground "veins" and in alluvial deposits veins deposits. • Pure gold is dense. shiny and the most malleable and ductile substance known known. 8 . soft.

tarnish or corrode. • Gold has a naturally warm yellow colour. 9 . but can be alloyed with other metals to create different colours. colours • Gold can also be alloyed with a number of other metals to increase its strength strength.About gold… • Pure gold does not rust.

Malleability of gold… • Ability of the material to be rolled into thin sheets.) of gold can be flattened to a thin sheet th t h an area of about h t that has f b t 16 sq metres! 10 .1 gr. • One troy ounce (31.

Malleability of gold… Fine gold is so malleable that it can be beaten down to a leaf of 10 thousandth of 1 mm which one can actually see through!! 11 .

2km long.Ductility of gold • Ability of the material to be drawn into fine wires. • A single gram of gold can be stretched into a wire 3. 12 .

13 .000000003) in (0 000000003) the Earth's crust is gold or 3 gms for every 1000 tons.Rarity of gold… The high price of gold is due to its rarity. Only three parts out of every billion (0.

A troy g ounce of gold would have a volume of 1. 1.61 cm3.61 x 32. A metric ton equals 1.72 troy ounces of gold which will have a volume of 51.150. 14 .000kg = 32.72). which would be equivalent to a cube of side 37.27cm (Approx.10 grams). 1' 3'').150.762 cm3 (i.e.A ton of gold… Gold is traditionally weighed in Troy Ounces (31.

• A 10 tola bar or TT bar is popularly termed as a biscuit.375 troy ounces. 15 .66 grams or 0.One tola of gold… • A tola is 11.

0 and 999. 16 .Popular denominations in India • 100 gms and 1 kilo bar in Fineness of 995.9 • The 100 gms bars and the kilo bars are always numbered.

as well as from stocks of gold bullion held by banks. bars. The remainder comes from recycling ‘scrap’ (old jewellery.Where does gold come from? Around two-thirds of the gold used in the refining and manufacturing of gold comes from gold mining. So ld' ‘i d t tibilit ’ S gold's ‘indestructibility’ means that the gold in your wedding ring may once have hung from Jijamata’s earring. or adorned a Roman l d or accompanied an R lady i d Egyptian king to the afterlife. 17 . coins and industrial products).

1 18 .7 101.5 239 5 169.2 75.2 146.1 3.5 269.6 169.3 239.Gold mining nations COUNTRY CHINA SOUTH AFRICA AUSTRALIA USA PERU RUSSIA INDONESIA CANADA UZBEKISTAN GHANA INDIA 2007 PRODUCTION 280.9 246.3 75.

• Transporting the broken material from the mining face to the plants f treatment. h l for • Processing. • Removing the ore by mining orbreaking the ore b d b k h body. 19 . • Creating access to the ore body. • Refining.Gold mining The process of producing gold can be divided into 6 main phases: • Finding the ore body body.

– Underground mining mining. Open Pit and Underground. each developed to fit with the circumstances where the ore is found and to fit with which processes are optimal to extract gold. 20 . – Open Pit.Gold mining There are two types of mines.

sorting the gold from the gravel and other material. shallow pans are filled with sand and gravel that may contain gold. 21 . Water is added and the pans are shaken. gold Wide.Gold panning Gold panning is a mostly manual technique of sorting gold.

Gold panning As gold is denser than rock. or resting on the bedrock bed of the stream. often at a bend in the stream. it quickly settles to the bottom of the pan The silt is usually pan. where the weight of gold causes it to separate out of the water flow. removed from stream beds. This type of gold found in streams or dry streams are y called placer deposits. 22 .

gold but is not commercially viable for extracting gold from large deposits.Gold panning Gold panning is the easiest technique for searching for gold. 23 . It is often marketed as a tourist attraction on former goldfields.

After blasting.Types of mining – Open pit Open pit mining is a kind of surface mining and is suitable for large tonnage near surface deposits. the broken rock is marked by the geologists as being either ore or waste. p pits Open p have become the favoured mining method in recent years. Blasthole drill holes are filled with explosive and blasted. 24 . preparing the rock to be moved.

An open pit mine. 25 .

Equipment 26 .Gold mining .

The blasted blasted 'stopes' or 'faces' are cleaned before the ore is released ready for transportation out of the mine. filled with explosive and blasted. 27 . In underground mining. holes are drilled into the ore body.Types of mining – Underground mining.

The residual waste rock is then generally recycled in land-fill or landscaping projects. after which the gold is then re-dissolved and re dissolved subsequently smelted into doré bars that are shipped to the refineries. 28 .Processing • The most common means of recovering gold is the cyanidation process process. • Cyanidation involves the leaching of ore in a strictly controlled alkaline cyanide leach solution.

They are then given bars 'good delivery status'.Refining The doré bars are further refined to become as close to pure gold as possible. providing assurance that they contain the quantity and purity of gold that has been stamped on them. in the form of gold bullion bars. the international standard for quality. 29 .

72%. 100 / ten grams which in percentage terms at current price is 0.Factors • Factors affecting gold price are: – Demand / supply – Investor sentiment – US $ price – Instability • Customs duty on imported gold is currently Rs. 30 .Gold price .

• U if Uniform Value Added T of 1% applicable on every t V l Add d Tax f li bl transaction i most parts ti in t t of the country. • Extremely low value addition of 15 % on je eller jewellery. • The jewelry sector amounts to 74 % of the total gold consumption in India. g p • Plain Gold jewelry overwhelmingly dominates Indian jewelry sales. There are 350.000+ traditional retail outlets and 3 million+ artisans.Supply chain of gold in India • 4 Government Agencies. Source: KPMG 2005 Report p 31 Split of Indian Jew ellery Sales Others Diamond 5% Jew elllery 14% Plain Gold 81% • . 19 licensed Banks and 3 Super Star Export Houses permitted to import gold.

households have 15. then most gold is owned by the USA (Fort Knox) followed by Germany and the IMF (International Monetary Fund). • It is estimated. • If we include jewellery ownership. then India is the la gest epos to y of largest repository o gold in terms of total gold within the national boundaries. that Indian .Who owns most gold? • If we take national gold reserves.000 tonnes of gold in stock! 32 .

33 .Fort Knox The United States Bullion Depository holds about 4.000 metric tons of gold in trust for many foreign nations. which holds about 5.603 tons (4.176 metric tonnes) of gold bullion (147. central banks and official international organizations. It is second in the United States only to the Federal Reserve Bank of New York's York s underground vault in Manhattan.399 million ounces[1]).

• Many countries only allow certain caratages of gold jewellery to be sold. 18 and 22 carat gold jewellery. in the United Kingdom.Caratage • Most gold jewellery worldwide is marked with its caratage or fineness. one can make and sell 9. 34 . 14 . jewellery lower than 12 carats (50% gold or 500 fineness) cannot be described as gold. but not 12 carat gold. For example. • In some countries.

90% 99.50% 33.60% 91 60% 87.00% 99 00% 95.30% Comments Pure gold Minimum allowed f pure gold Mi i ll d for ld Western India Indian subcontinent Arabic countries Standard international caratage USA Minimum in USA Minimum in UK Minimum Germany 35 .70% 37.50% 75.80% 91.00% 75 00% 58.50% 41.Internationally recognised caratage chart Karat 24 24 23 22 21 18 14 10 9 8 Fineness 999 990 958 916 875 750 585 417 375 333 Gold % 99.

• The variations are achieved by mixing (alloying) pure gold with other metals. green white red to black. red.Colour • Gold jewellery can be produced in a range of other colours – ranging from white. 36 .

0%gold) and lower.Colour • Gold is yellow and copper is red. can golds metals have a wider range of colours than the higher carat golds. because we can add more alloying metals. At 18 carat (75. we can understand that lower carat golds. • • Thus at 22 carat (91. The addition of a red colour to yellow.6% gold). 37 .4% of alloying metals and hence can only obtain y y yellow to p pink/rose shades. All other metals are white or grey in colour. the only two coloured pure metals. depending on the copper silver plus zinc ratio. Thus. we can add 25% or more alloying metals and hence get colour ranging from green through yellow to red. • This principle of mixing colours is the same in carat golds. zinc and any other metal makes gold paler. Adding copper to gold makes it redder and adding silver. we can only add a maximum of 8. makes the yellow pinker and eventually red. The addition of a white makes the yellow colour paler and eventually white white.

38 .White Gold White gold is produced by alloying pure gold with white metals like nickel. palladium and nickel zinc to pure gold.

Rose Gold Rose gold is produced by raising the ratio of copper to silver. 39 .

40 .Green Gold Green gold is produced by adding a combination of silver. palladium and copper copper.

41 .Black Gold Controlled oxidation of 18K yellow gold containing chromium or cobalt can be made to yield black gold.

Purple gold Purple gold is produced by a combination of gold and aluminum. aluminum 42 .

• An article of yellow gold jewellery can be made to look like it is white gold by having it Rhodium plated.Rhodium plating • Rhodium is the most common plating material used to plate gold because it provides a bright mirror like finish. 43 .

each individual's body chemistry and the thickness of the plating. 44 .Rhodium plating A Rhodium plated item may retain its finish depending upon the amount of wear the article is subjected to.

it can be re-plated to look brand new and the process is not very expensive.Rhodium plating If the rhodium finish on a piece of jewellery wears off over time. 45 .

Each finish has it’s own distinct way of lending itself to the design and it is the finish that lends any design it’s character.Finish Gold jewellery is available in a range of different finishes. 46 .

High Gloss / Satin Finish The finish is achieved by way of buffing the metal.e. i. the piece of jewellery is rubbed on a high speed lathe and by virtue of friction and heat generated. 47 . all surface impurities and irregularities are smoothened.

Matte Finish • Matte finished jewellery tends to be favoured by modern. design-conscious and high fashion individuals. • This finish is achieved when the metal is not buffed buffed. 48 Matte finish .

repeatedly 49 .Hammered finish It is a manually achieved texture in which metal is hammered repeatedly.

Diamond cut finish Diamond finish usually has tiny reflective facets and then rhodiumed for added “sparkling sparkling effect” 50 .

Filigree • Filigree has an intricate appearance. 51 . bending and soldering wires into individual forms. • It is a technique of surface ornamentation by twisting.

Chasing is the refining of the design on the front by sinking the metal in the contours. ornaments The reverse of the metal is pushed or hammered from the reverse side to create a 3 dimensional effect. 52 .Repousse & chasing It is a technique which is used to embellish the surface of gold ornaments.

tools This technique allows a high degree of creativity from the craftsman. 53 .Engraving Individual designs are engraved manually with steel engraving tools.

54 . forming a pattern in relief.Stamping Die stamping also known as machine-stamping is a process in which sheet metal is cut and shaped between two dies.

Stamping This commonly used process produces hollow lightweight j jewellery. 55 . Generally matching pairs of stamped pieces are soldered together to form the completed jewellery piece and then polished Coins and polished. medals are also made by this technique. Thin sheet or strip of y p the carat gold is placed between a series of matching halves of hardened steel dies and blanked out and then progressively punched to form the required 3-dimensional shapes.

The grains are made base by pouring molten gold into water which then form drop-like granules. p . or by placing gold cuttings in a crucible with charcoal and then heating and rotating so that the gold forms small spheres.56 Granulation The surface of jewelry is decorated by affixing minute grains of gold to the metal base.

57 .Casting The process of making a complete piece in wax and replicating it in gold through the lost wax casting process is one of the most dominant method of producing mass jewellery today.

Enameling It is also a surface decoration technique in which a pigment of a vitreous nature composed usually of powdered potash and silica. bound with oil. coloured with metallic oxides are applied to gold. 58 .

• They are designed mainly for constructive purposes such as purposes. joining or attaching different components of a piece toget e . the ‘mechanics’ of the creation of a piece of jewellery. together. linking.Jewellery findings • Jewellery findings are. as their name suggests. 59 .

Assaying • There are a number of methods for measuring the gold content . • Measuring the gold content is known as assaying.or ‘fineness’ .of carat gold fineness jewellery. 60 .

Touchstone testing Touchstone testing is an ancient method for measuring gold content whereby a rubbing of the jewellery is made on a special touchstone alongside rubbings of known reference samples and treated with acids. 61 .

Touchstone testing The colour of the reacted area is compared to that of the reference sample. It is not sample sufficiently accurate (about 15 parts per thousand at best) and is only useful as a sorting test to differentiate between different caratages. 62 . It is less accurate at high caratages and with white gold.

X-Ray Fluorescence
X-ray fluorescence (XRF) is a non-destructive technique that is suitable for normal assaying requirements. It is more or less accurate under the following condition: – The surface of the jewellery being measured is relatively flat and sufficiently la ge. O lat a d su c e tly large. On curved surfaces, the gold Xrays generated and measured are scattered and accuracy is reduced significantly.

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X-Ray Fluorescence
This method only measures the gold content of a thin surface layer, so accuracy is layer severely compromised where the jewellery article has had a chemical surface treatment (to enhance colour) or has been electroplated with a layer of pure gold.

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Fire Assay
This is the most accurate method of assaying. It involves taking a small scraping from the article, typically about 250 milligrams, weighing it accurately, accurately wrapping it in lead foil with some added silver and placing it in a furnace at about 1100°C to remove all base metals and then placing the resulting gold-silver alloy button in nitric acid to dissolve out the silver and re-weighing the resulting pure gold. This is the re weighing standard reference technique used by the national Assay laboratories worldwide for Hallmarking.

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then the Assay Office marks the jewellery with a number of marks including the caratage or fineness. there is a legal requirement for all jewellery to be tested (assayed) by an independent third party (typically. However. y Assay Office). in countries where there is no independent system of hallmarking.Hallmarking In many countries. an accredited y ) . This collection of marks is known as a hallmark. 66 . If found to be within tolerance. the maker’s mark and the Assay Office mark. caratage marks or numbers are hallmarking not necessarily guarantees of gold content.

Hallmarking • A BIS certified jeweller (retailer/manufacturer) has the right to register himself with any of the BIS recognized Assaying and Hallmarking Centres to get his jewellery hallmarked. • BIS maintains surveillance on the certified jewellers at a defined periodicity. • Market surveillance involves collection of hallmarked gold jewellery from licensee's retail outlet/manufacturing premises and having it tested forconformity in BIS recognized Hallmarking Centre. 67 .

Hallmarking A Hallmark consists of the following five components: • BIS Mark • Fineness number (corresponding to given caratage) • Assaying and Hallmarking Centre's Mark • Jeweller's identification Jeweller s Mark • Year of Marking 68 .

as well as the use to g . from plainer styles such as Box. 69 . A wide range of designs are available ranging available. physique. Snake. which the chain will be put. Rolo and Omega. Rope etc. skin-tone and gender. through to moreintricate possibilities such as Byzantine. personality. • Certain styles will be more (or less) appropriate depending on the customer’s fashion sense.Chains • Gold chains are must-have accessories.

Box Chain Byzantine Chain 70 .

Omega Chain Rolo Chain 71 .

Rope Chain Snake Chain 72 .

which are h lt d hi h very dangerous to the artisan’s health and hence it is Globally banned from use. 73 . Cadmium marked KDM was traditionally used in soldering of gold jewelry because it melts at lower temperatures. Jewellers in many parts of the world now use cadmium free gold solders solders. • Also note that using any type of gold solder either KDM (Cadmium) or other g ld solder. • C d i Cadmium i k is known t create t i f to t toxic fumes when melted. t make th j th gold ld to k the jewelry d l does not g t guarantee th t the purity of gold. as the purity is a representation of the percentage of gold in any metal.KDM Jewellery • Gold Jewelry from some places was marked with a KDM stamp which means that the jewellery was soldered with Cadmium.

India’s love affair with GOLD 74 .

Total demand for gold in major countries 900 800 700 600 500 400 300 200 100 India China Saudi Arabia USA 2000 2001 2002 2003 003 2004 2005 2006 2007 75 .

76 .India – largest consumer of gold • India is the largest consumer of gold in the world! • India accounts for approximately 24% of global Gold consumption. • China has overtaken USA as the second largest market for gold but USA continues to be the biggest market for gold in value terms.

in rural areas. there is more re-cycling of jewelle y jewellery as buy bac s for backs o cash. because jewellery is more widely used for savings and as “money” 77 East 15% South 40% North 20% West 25% .Regional Demand & Consumption Patterns in India • South remains to be the largest market for gold off take followed by the West and North • Urban consumer demand accounts for only 40% of the total demand.

ethinic and chunky designs • Sold on gold price + labou o p ce labour Emergent Trends • Ad Adornment t • Wearability and gifting throughout the year • Growing interest in brands that signify quality and trust • Fashionable.Winds of Change Traditional Forces • • • • Jewellery as investment Marriage and festive occasions Dependence on family jeweller Traditional. lightweight innovative designs • Per piece pricing 78 .

• Demand for a better shopping experience. • Greater numbers traveling abroad.Social reasons for changes in Gold purchase • Widespread influence of media. • Exposure to international trends. • More women are seeking their independence by entering the workforce. 79 . kf • Young middle class Indians are more willing to spend than their p parents. • Huge disposable incomes and a clear segment who has the willingness and ability to buy luxury products.

80 Traditional reasons for gold consumption in India • An asset and an investment • Offers mental security as a fallback option • Linked to social status • Passed on from generation to generation – Streedhan dh • Liquid .

So for Indians at least. (father to son to grandson) gold has a tendency of getting passed down from generation to generation. gold will never lose its sheen. • Gold is ancestral From mother to ancestral. q 81 .Gold – An asset of last resort • The gifting of gold is so pervasive that provisions are made in wills to gift gold to yet unborn grand children or to grandunmarried children/ grandchildren on their marriage. • In fact the mentality is so possessive for gold that it will be sold as a last resort only and before that most of the other assets will be liquidated. daughter to granddaughter.

the custom of gifting gold in marriages is deeply ingrained. • Gold and jewellery expenses constitute between 30-50% of the total marriageexpenses! • In times when women were not independent and educated and vulnerable to social pressures. Gold from marriage provided security security.Gold completes weddings • In the Indian society. 82 . • In case of unfortunate events like the death of husband or drought situations due to poor harvests -Gold would provide some protection to the family.

83 .Gold completes weddings • Families start saving soon after their daughters are born . Streedhan • Gold gifted to the bride is called "Streedhan" and this is Streedhan exclusively her property in her new house.for "Streedhan" and dowry.

Gold is for Celebration and is Auspicious Indian consumers continue to believe in the auspiciousness of gold purchase & its usage during certain d / periods i a year t i days/ i d in as per the Indian solar calendar. 84 .

Gold gifting occasions in India • • • • • • • • • • • • • • • • • Sankrant / Pongal Baisakhi Gudi Padwa Ugadi Visu Akshaya Tritiya Gurupushyamrut Raksha Bandhan Ganesh Chathurthi Onam Durga Pooja Ghatasthapana / Navratri Dassera Karwa Chauth Dhanteras Diwali / New Year Laabh Paacham 85 .

Rural India
Indian consumers continue to believe in the p gold auspiciousness of g purchase & its usage during certain days/ periods in a year as per the Indian solar calendar. calendar

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Gold Varak
• Edible thin sheets of gold have been popular decorations in India for centuries. • Varak sheets, which are flavorless and odorless, can odorless be found in Indian markets and mithai shops. • Varak sheets are so fragile that they dissolve easily with human touch and can be torn by the barest breath of air. y

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Gold in food
• In some Asian countries, gold is used in food and drink, from fruit jelly snacks to coffee coffee. • Europeans have included floating bits of gold leaf in bottle of liquor for centuries centuries, at least since the late 1500s.

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GOLD IN CARS Gold is already used in the electronic circuitry of many cars and is now being considered for use as a component in diesel catalytic converters. This could make enable a significant saving for automotive companies currently using platinum group metals in this l h application. 89 .

conductivity and corrosion resistance have made it a vital material in mankind’s exploration of space. • A gold coated telescope on board the Mars Global Surveyor helped generate a detailed map of the entire Martian surface. • 90 .GOLD IN SPACE Gold’s reflectivity. 41Kg of g g gold coatings of goldwas used in the construction of the US Columbia space shuttle.

it is a key component in medical implants such as heart stents and is also used in medical testing kits. 91 . Gold is used to treat cancer and arthritis.BIOMEDICAL USES OF GOLD There is a long history of using gold in medicine.

92 . b i able t b d into thin i gold has been used in embroidery since ancient times.Zari thread Zari is an Urdu word for metallic thread. Due to its highly ductile property of being bl to be drawn i t thi wires.

93 .Gold in Ayurveda Gold is considered to be an excellent ‘rejuvenator’ and is one of the metals used in Ayurvedic medicines since ancient times.

decorative ornaments. Most items contain 1 gram or less of fine gold. 94 .Gold plating • Gold is used for plating cutlery and other utensils. spectacle f t l frames. mirrors as well as i ll imitation gold jewellery. watch cases and straps. • • Imitation jewellery is made in copper or brass and then gold plated.