GOLD APPRIASAL & VALUATION

Introduction
Testing the quality of gold can be done in a
number of ways. While some prefer to use an
electronic gold testing kit, the most popular
way is by using acids. Acid testing is done with
a kit of several acids that determine the
amount of karats in the gold being tested, and
each acid is designated by amount of karats.
Nitric Acid is used for Testing the purity of
gold
 What is the need for appriasal
• To ensure 100% right valuation -
• Capturing right cartage, proper stone
deduction etc.
• Adhering to high ethical standards and
comply with all the laid down processes /
policies - KYC adherence, maintaining all
important registers etc.
 How can I appraise my own jewelry?
• Look for BIS stamps: The stamps, or markings that
indicate the metal content and the manufacturer or
designer, are the best hint as to your jewelry's true
value. ...
• Test the metal: Gold does not reacts to acids, and if
reacts then it can be judged as adulteration has
happened in the gold alloy mix. Normally gold does
not react to nitric acid, but rest of the metals reacts
to nitric acid and gets evaporated by way of fumes.
• Scanning using XRF machine.
 How can I appraise my own jewellery?
• Sound Test- If you drop the item gold
ornaments have a peculiar sizzling sound
• Smell test- Gold does not have any smell, if
smell comes then it is not pure gold
• Weight Test – Gold has weight , as its density
is high, so if you feel an abnormality then
check thoroughly
• Touch stone Method with Nitric Acid
How is gold price determined in international
market?
The price of gold is primarily determined by a
combination of factors like supply, demand,
and investor behaviour. However, current gold
prices not only factor immediate supply and
demand but also expectations of future supply
and demand.
Examples : War, Inflation, Political issue,
Weather, Natural Hazards , Pandemic cases
all affects price of Gold
How the price of gold is determined in India?

Dealers generally arrive at their 'buy' and 'sell'

rates by taking the international cost of gold
and multiplying/adjusting it to the exchange
value of the Rupee and adding any import
duties and taxes such as GST. Dealers ensure
that they add their margin to the rates they
give.
 DENSITY OF GOLD IN VARIOUS KARATS

Karats ‰ Gold content Comment Density /g/cm3

24 99.9 99.0% Minimum allowed 19.3

22 91.6 Indian subcontinent 15.6

21 87.5 Arabic countries

75% Au, 16% Ag and 9% Cu

18 75.0
[1]

14 58.5 58.5% Au,4.0% Ag, 31.2% 12.9 - 14.6

Cu, and 6.3% Zn

10 41.7 Minimum in USA

9 37.5 U.K. standard

8 33.3
Purity Density
14k gold 12.9 to 14.6 g/ml

18k yellow gold 15.2 to 15.9 g/ml

18k white gold 14.7 to 16.9 g/ml

22k gold 17.7 to 17.8 g/ml

 DENSITY OF GOLD
Gold has unique density, it has 19.32 gms per
cubic centimeter.

For example 1kg of cotton will be bigger in

size, compare to 1 kg of Gold. Similarly 1 kg
of Iron bar will be larger in size compared to
1 kg of Gold. This is mainly due to Density

Platinum is the densest of all the precious metals, meaning it

weighs the most while taking up the least amount of space.
Every cubic meter of platinum weighs 21,400 kilograms. Gold is a
close second, coming in at 19,320 kilos per cubic meter, followed
by palladium and silver at 12,160 kilos and 10,490 kilos per cubic
meter, respectively.
How to check the purity of Gold by Density
Formula
Example : If you are given a gold biscuit with the dimensions Length - 5 cm,
breadth – 3 cm and height 1 cm and stamped as pure gold of 24K, then you can
appraise via

Step -1 Find out volume = l x b x h = 5x3x1

= 15 cm
Step – 2 Multiply volume x Desity of Gold i.e. 19.32 gms/cubic
centimetre
Step – 3 = 15cm x 19.32 gms = 289.8 gms
Step – 4 = Weight the biscuit , it should be 289.8 or around 289 gms, if it is not
around 289, then you can conclude it as “Not Pure Gold” and vice versa if it is 289
gms then you trust it as “Pure Gold “

International Gold price quoted in Troy Ounce , 1 Troy ounce is 31.1034 gms
 Conversion of International price to Indian
Price
• Assume International price as $1700/ troy ounce, USD/INR =
Rs.80, 1 Troy Ounce = 31.1034 gms
Calculation : - (1700 x 80)/ 31.1034 =
Rs.4372.51
Add Import Duty 12.5% Rs. 546.56
Add Agri Cess 2.5% Rs. 122.97
Add GST 3% Rs. 151.26
--------------
Rs.5193.30/gm
Add Dealer Margin with this you will get the market rate.
 How does gold testing machine work?
The Karatmeter is a scientific instrument which uses X-
rays to give an exact reading of the purity of gold. Due
to its very high precision and fast result, X-ray analysis
has been adopted by international agencies in India as
part of the certification process used to hallmark gold.
Note : XRF machine only
tells skin purity,
It can’t detect the purity
as a whole, machine will
not detect any impurity
inside the metal.
 How do you test gold with Nitric Acid?

• If your gold piece turns black or green when

the Nitric acid is on it, or if it starts to smoke
or fizzle at all when the acid touches it, it is
most likely not real gold. If your gold piece
does not change colors and does not fizzle or
react to the acid in any way, it is probably real.
• Note : Nitric Acid (HNO3) should be
Concentrated.
 AQUA REGIA
Aqua Regia (Latin for “royal water”) is an acidic, corrosive, and oxidative mixture of three
parts concentrated hydrochloric acid (HCl) and one part concentrated nitric acid (HNO3).

It is commonly used to remove noble metals such as gold, platinum and palladium from
substrates, particularly in microfabrications and microelectronics labs.

For alloys greater than 14 K, aqua regia is used to test the gold. Aqua regia dissolves gold
itself (as well as dissolving the silver and copper components) and for this reason it is used
to test higher karat gold alloys. Aqua regia dissolves gold in two separate reactions.

All refiners are using Aqua Regia to purify the gold so to make it to 24 K.

Aqua regia is primarily used to produce chloroauric acid, the electrolyte in the Wohlwill
process for refining the highest quality (99.999%) gold.
 GOLD PURIFICATION USING
LEACHING PROCESS
This method of making soluble gold is known
as leaching. In the process of leaching, a dilute
form of sodium cyanide is added into the ore
containing the gold. Since gold is soluble after
the leaching process, it is free to move through
the membrane while the rest of ore cannot
pass through the membrane.
In Mining Leaching process is used to extract
the gold from the ore.
 ASSESSMENT TEST
1 ________ is used to melt gold

a) Hydrochloric Acid b ) Nitric Acid c) Sulphuric

acid d) Aqua Regia

Ans . Aqua Regia

 ASSESSMENT TEST
2 Aqua Regia is mixture of ________

a) 3 HCL and 1 HNO3 b ) 3HNO3 and 1 HCL

c) HCL and CN d) HCL and No3

Ans . A
 ASSESSMENT TEST
3 International gold price is denoted in _____
Currency

a) US dollar b ) British Pound c) INR d )

Singapore Dollar

Ans . A
 ASSESSMENT TEST
4 Internationally gold measurement is done in
________

a) Kilo bar b) Kilo grams c) 24K d) Troy Ounce

Ans . D
 ASSESSMENT TEST
5 ) Troy ounce = $ 1850 , USD -INR = 80
What will be the Gold price in India as on
15.07.2022, Consider Import duty as 12.5%,
Agri cess as 2.5% and GST 3%

a) 6421 b) 5487 c) 5652 d) 6652

Ans . 5652
 ASSESSMENT TEST
6 In Leaching method ________ is used to
dissolve gold

a) Hydrochloric Acid b ) Nitric Acid c) Sulphuric

acid d) Aqua Regia e) Cynaide

Ans . Cynaide
 ASSESSMENT TEST
7 ) Length of gold biscuit is 6cm, Width 3 cm,
height 1.5 cm , Customer told that it is 24K,
then what will be the pure weight

a) 302 gms b) 202.6 c) 102.5 gms d)402gms

Ans . B ) 202.6 gms

 ASSESSMENT TEST
8 ) Which items have very high probability for
gold adulteration

a) Coins b) Pipe Bangle c) Sachin chains d)

hollow Lockets e) All of the above
Ans . E
 ASSESSMENT TEST
9) If density of an gold jewellery is less then
Purity of gold is also low
a) True b ) False

Ans . True
 ASSESSMENT TEST
10 ) XRF gives only purity ________

a) Inside b) Outside c) Both d) BIS

Ans . B ) Outside
 ASSESSMENT TEST
11 ) Density of pure gold is ________

a) 24K b) 22K c) 19.3 cc d) 19.3K

Ans . C ) 19.3cc
 ASSESSMENT TEST
12 ) Heating of gold jewellery helps to
reduce outside impurities ?

a) True b) False

Ans . A ) True
 ASSESSMENT TEST
13 ) There exists BIS mark even in Spurious
Jewellery
a) True
b) False

Ans . A)
 ASSESSMENT TEST
14 ) Arrange it in order for exchange
a) Heating b) Weighing after heating c)
Removing stone d) Weighing the item before
heating and removal of stone e) Weighing
after removal of stone
1) b,a,e,c,d 2) a ,b,c,d,e 3) d, c, e,a,b 4)
e,c,a,b,d
Ans . 3
 ASSESSMENT TEST
15 ) International gold price is determined by
a) supply and demand, b) Political factors, c)
Inflation, d) Festival season
a) All of the above b) None of the above c)
a&B d) A & C

Ans . A