This action might not be possible to undo. Are you sure you want to continue?
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.
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
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. and holding of gold.The World Gold Council Founded in 1987. 4 .
Beijing 5. Chennai 4. Singapore 8. Shanghai 6. helping to develop distribution systems and promoting the role of gold as a reserve asset in the official sector sector. WGC has offices in 10 most p gold markets. the World Gold Council is also instrumental in working to lower regulatory barriers to the widespread ownership of gold products. Apart p important g from undertaking marketing initiatives to drive demand. Istanbul 10. 1. Tokyo 7.New York 5 .The World Gold Council With headquarters in London. Mumbai 3. 8 Dubai 9. London (Headquarters) 2.
we are not directly involved in any specific gold production/ trading/ dealing/ broking activities. educate and support the wider investment community regarding gold as an asset. 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 .
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. 7 .About gold… • Gold is a chemical element with the symbol Au from its Latin name Aurum Aurum.
soft. shiny and the most malleable and ductile substance known known.About gold… • The metal occurs as nuggets or grains in rocks. 8 . underground "veins" and in alluvial deposits veins deposits. • Pure gold is dense.
9 .About gold… • Pure gold does not rust. but can be alloyed with other metals to create different colours. • Gold has a naturally warm yellow colour. colours • Gold can also be alloyed with a number of other metals to increase its strength strength. tarnish or corrode.
1 gr.Malleability of gold… • Ability of the material to be rolled into thin sheets. • One troy ounce (31.) 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 .
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. 12 . • A single gram of gold can be stretched into a wire 3.
Only three parts out of every billion (0.000000003) 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. 13 .
000kg = 32.27cm (Approx.72).762 cm3 (i.61 cm3. A metric ton equals 1.150. A troy g ounce of gold would have a volume of 1.e.61 x 32. 14 .10 grams).A ton of gold… Gold is traditionally weighed in Troy Ounces (31.150.72 troy ounces of gold which will have a volume of 51. which would be equivalent to a cube of side 37. 1' 3''). 1.
• A 10 tola bar or TT bar is popularly termed as a biscuit.One tola of gold… • A tola is 11.375 troy ounces. 15 .66 grams or 0.
0 and 999.9 • The 100 gms bars and the kilo bars are always numbered.Popular denominations in India • 100 gms and 1 kilo bar in Fineness of 995. 16 .
Where does gold come from? Around two-thirds of the gold used in the refining and manufacturing of gold comes from gold mining. as well as from stocks of gold bullion held by banks. 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. The remainder comes from recycling ‘scrap’ (old jewellery. or adorned a Roman l d or accompanied an R lady i d Egyptian king to the afterlife. bars. 17 . coins and industrial products).
1 18 .7 101.Gold mining nations COUNTRY CHINA SOUTH AFRICA AUSTRALIA USA PERU RUSSIA INDONESIA CANADA UZBEKISTAN GHANA INDIA 2007 PRODUCTION 280.2 75.5 239 5 169.9 246.1 3.5 269.6 169.2 146.3 75.3 239.
19 . h l for • Processing. • Transporting the broken material from the mining face to the plants f treatment. • Removing the ore by mining orbreaking the ore b d b k h body. • 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.
Gold mining There are two types of mines. Open Pit and Underground. – Underground mining mining. – Open Pit. 20 . each developed to fit with the circumstances where the ore is found and to fit with which processes are optimal to extract gold.
Water is added and the pans are shaken. sorting the gold from the gravel and other material. gold Wide. 21 . shallow pans are filled with sand and gravel that may contain gold.Gold panning Gold panning is a mostly manual technique of sorting gold.
where the weight of gold causes it to separate out of the water flow. it quickly settles to the bottom of the pan The silt is usually pan. 22 .Gold panning As gold is denser than rock. or resting on the bedrock bed of the stream. This type of gold found in streams or dry streams are y called placer deposits. removed from stream beds. often at a bend in the stream.
gold but is not commercially viable for extracting gold from large deposits. 23 . It is often marketed as a tourist attraction on former goldfields.Gold panning Gold panning is the easiest technique for searching for gold.
After blasting. Blasthole drill holes are filled with explosive and blasted. preparing the rock to be moved. the broken rock is marked by the geologists as being either ore or waste.Types of mining – Open pit Open pit mining is a kind of surface mining and is suitable for large tonnage near surface deposits. 24 . p pits Open p have become the favoured mining method in recent years.
25 .An open pit mine.
Equipment 26 .Gold mining .
holes are drilled into the ore body.Types of mining – Underground mining. filled with explosive and blasted. 27 . In underground mining. The blasted blasted 'stopes' or 'faces' are cleaned before the ore is released ready for transportation out of the mine.
• Cyanidation involves the leaching of ore in a strictly controlled alkaline cyanide leach solution.Processing • The most common means of recovering gold is the cyanidation process process. 28 . 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.
the international standard for quality. in the form of gold bullion bars.Refining The doré bars are further refined to become as close to pure gold as possible. They are then given bars 'good delivery status'. 29 . providing assurance that they contain the quantity and purity of gold that has been stamped on them.
Gold price .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 .
Source: KPMG 2005 Report p 31 Split of Indian Jew ellery Sales Others Diamond 5% Jew elllery 14% Plain Gold 81% • . g p • Plain Gold jewelry overwhelmingly dominates Indian jewelry sales. • 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.000+ traditional retail outlets and 3 million+ artisans. 19 licensed Banks and 3 Super Star Export Houses permitted to import gold. • The jewelry sector amounts to 74 % of the total gold consumption in India.Supply chain of gold in India • 4 Government Agencies. • Extremely low value addition of 15 % on je eller jewellery. There are 350.
that Indian . • It is estimated. then India is the la gest epos to y of largest repository o gold in terms of total gold within the national boundaries. then most gold is owned by the USA (Fort Knox) followed by Germany and the IMF (International Monetary Fund). households have 15. • If we include jewellery ownership.000 tonnes of gold in stock! 32 .Who owns most gold? • If we take national gold reserves.
Fort Knox The United States Bullion Depository holds about 4.176 metric tonnes) of gold bullion (147. It is second in the United States only to the Federal Reserve Bank of New York's York s underground vault in Manhattan. central banks and official international organizations. which holds about 5. 33 .399 million ounces).000 metric tons of gold in trust for many foreign nations.603 tons (4.
Caratage • Most gold jewellery worldwide is marked with its caratage or fineness. 14 . 34 . 18 and 22 carat gold jewellery. in the United Kingdom. • Many countries only allow certain caratages of gold jewellery to be sold. For example. • In some countries. but not 12 carat gold. jewellery lower than 12 carats (50% gold or 500 fineness) cannot be described as gold. one can make and sell 9.
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% 33.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 % 99.60% 91 60% 87.00% 99 00% 95.50% 75.90% 99.00% 75 00% 58.50% 41.80% 91.
36 . • The variations are achieved by mixing (alloying) pure gold with other metals.Colour • Gold jewellery can be produced in a range of other colours – ranging from white. red. green white red to black.
we can understand that lower carat golds.6% gold). All other metals are white or grey in colour. we can add 25% or more alloying metals and hence get colour ranging from green through yellow to red. Adding copper to gold makes it redder and adding silver. zinc and any other metal makes gold paler. depending on the copper silver plus zinc ratio.4% of alloying metals and hence can only obtain y y yellow to p pink/rose shades. can golds metals have a wider range of colours than the higher carat golds.0%gold) and lower. because we can add more alloying metals. At 18 carat (75. The addition of a red colour to yellow. makes the yellow pinker and eventually red. • This principle of mixing colours is the same in carat golds.Colour • Gold is yellow and copper is red. we can only add a maximum of 8. The addition of a white makes the yellow colour paler and eventually white white. • • Thus at 22 carat (91. the only two coloured pure metals. Thus. 37 .
palladium and nickel zinc to pure gold.White Gold White gold is produced by alloying pure gold with white metals like nickel. 38 .
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.
aluminum 42 .Purple gold Purple gold is produced by a combination of gold and aluminum.
Rhodium plating • Rhodium is the most common plating material used to plate gold because it provides a bright mirror like finish. • An article of yellow gold jewellery can be made to look like it is white gold by having it Rhodium plated. 43 .
Rhodium plating A Rhodium plated item may retain its finish depending upon the amount of wear the article is subjected to. each individual's body chemistry and the thickness of the plating. 44 .
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. 46 .Finish Gold jewellery is available in a range of different finishes.
High Gloss / Satin Finish The finish is achieved by way of buffing the metal. i. 47 .e. the piece of jewellery is rubbed on a high speed lathe and by virtue of friction and heat generated. all surface impurities and irregularities are smoothened.
48 Matte finish . • This finish is achieved when the metal is not buffed buffed. design-conscious and high fashion individuals.Matte Finish • Matte finished jewellery tends to be favoured by modern.
Hammered finish It is a manually achieved texture in which metal is hammered repeatedly. repeatedly 49 .
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 . • It is a technique of surface ornamentation by twisting. bending and soldering wires into individual forms.
Repousse & chasing It is a technique which is used to embellish the surface of gold ornaments. 52 . 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.
53 . tools This technique allows a high degree of creativity from the craftsman.Engraving Individual designs are engraved manually with steel engraving tools.
Stamping Die stamping also known as machine-stamping is a process in which sheet metal is cut and shaped between two dies. 54 . forming a pattern in relief.
Generally matching pairs of stamped pieces are soldered together to form the completed jewellery piece and then polished Coins and polished. 55 .Stamping This commonly used process produces hollow lightweight j jewellery. 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. medals are also made by this technique.
56 Granulation The surface of jewelry is decorated by affixing minute grains of gold to the metal base. The grains are made base by pouring molten gold into water which then form drop-like granules. or by placing gold cuttings in a crucible with charcoal and then heating and rotating so that the gold forms small spheres. p .
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.
bound with oil.Enameling It is also a surface decoration technique in which a pigment of a vitreous nature composed usually of powdered potash and silica. 58 . coloured with metallic oxides are applied to gold.
as their name suggests. the ‘mechanics’ of the creation of a piece of jewellery. together.Jewellery findings • Jewellery findings are. 59 . joining or attaching different components of a piece toget e . • They are designed mainly for constructive purposes such as purposes. linking.
Assaying • There are a number of methods for measuring the gold content .or ‘fineness’ . 60 . • Measuring the gold content is known as assaying.of carat gold fineness jewellery.
61 .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.
It is less accurate at high caratages and with white gold. 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.Touchstone testing The colour of the reacted area is compared to that of the reference sample. 62 .
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.
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.
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.
then the Assay Office marks the jewellery with a number of marks including the caratage or fineness. in countries where there is no independent system of hallmarking. caratage marks or numbers are hallmarking not necessarily guarantees of gold content. 66 . However. the maker’s mark and the Assay Office mark. y Assay Office). there is a legal requirement for all jewellery to be tested (assayed) by an independent third party (typically.Hallmarking In many countries. If found to be within tolerance. This collection of marks is known as a hallmark. an accredited y ) .
• 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 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.
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 .
physique. personality. 69 . Rope etc. through to moreintricate possibilities such as Byzantine. Rolo and Omega. • Certain styles will be more (or less) appropriate depending on the customer’s fashion sense. Snake. which the chain will be put. skin-tone and gender. as well as the use to g . A wide range of designs are available ranging available.Chains • Gold chains are must-have accessories. from plainer styles such as Box.
Box Chain Byzantine Chain 70 .
Omega Chain Rolo Chain 71 .
Rope Chain Snake Chain 72 .
Cadmium marked KDM was traditionally used in soldering of gold jewelry because it melts at lower temperatures. 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. Jewellers in many parts of the world now use cadmium free gold solders solders. 73 . t make th j th gold ld to k the jewelry d l does not g t guarantee th t the purity of gold. • C d i Cadmium i k is known t create t i f to t toxic fumes when melted. • Also note that using any type of gold solder either KDM (Cadmium) or other g ld solder. which are h lt d hi h very dangerous to the artisan’s health and hence it is Globally banned from use.
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 . • China has overtaken USA as the second largest market for gold but USA continues to be the biggest market for gold in value terms.India – largest consumer of gold • India is the largest consumer of gold in the world! • India accounts for approximately 24% of global Gold consumption.
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. 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% .
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. lightweight innovative designs • Per piece pricing 78 .Winds of Change Traditional Forces • • • • Jewellery as investment Marriage and festive occasions Dependence on family jeweller Traditional.
kf • Young middle class Indians are more willing to spend than their p parents. 79 . • Huge disposable incomes and a clear segment who has the willingness and ability to buy luxury products.Social reasons for changes in Gold purchase • Widespread influence of media. • More women are seeking their independence by entering the workforce. • Exposure to international trends. • Demand for a better shopping experience. • Greater numbers traveling abroad.
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 .
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. (father to son to grandson) gold has a tendency of getting passed down from generation to generation. gold will never lose its sheen. • 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. So for Indians at least. q 81 . daughter to granddaughter. • Gold is ancestral From mother to ancestral.
Gold from marriage provided security security. 82 . 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 completes weddings • In the Indian society. • 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.
Gold completes weddings • Families start saving soon after their daughters are born . 83 .for "Streedhan" and dowry. Streedhan • Gold gifted to the bride is called "Streedhan" and this is Streedhan exclusively her property in her new house.
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 .
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
• 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
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.
89 . This could make enable a significant saving for automotive companies currently using platinum group metals in this l h application.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.
GOLD IN SPACE Gold’s reflectivity. 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 . 41Kg of g g gold coatings of goldwas used in the construction of the US Columbia space shuttle.
BIOMEDICAL USES OF GOLD There is a long history of using gold in medicine. Gold is used to treat cancer and arthritis. 91 . it is a key component in medical implants such as heart stents and is also used in medical testing kits.
92 . b i able t b d into thin i gold has been used in embroidery since ancient times. Due to its highly ductile property of being bl to be drawn i t thi wires.Zari thread Zari is an Urdu word for metallic thread.
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.
Gold plating • Gold is used for plating cutlery and other utensils. 94 . spectacle f t l frames. decorative ornaments. watch cases and straps. Most items contain 1 gram or less of fine gold. • • Imitation jewellery is made in copper or brass and then gold plated. mirrors as well as i ll imitation gold jewellery.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.