True enough, people are investing and transacting gold every single day. But there is one metal that should not be taken for granted and that is silver. On the functional side, silver is more reasonably priced than gold. Then again, it is basic to note that silver reserves move in sync with gold. The trend is that the value of gold and silver are rising when the general population loses confidence to the paper based financial system. When there is a danger in the economy, many are investing in gold and silver.

Characteristics Of Silver
Conventionally, silver is malleable and supple. They are quite soft. That is why, fine silver or pure silver is not used raw. To make it sturdier, alloys and other metals are mixed with silver. One of the most popular type of silvers is Sterling Silver. It is produced when the proportion of silver and copper is at 925:75.

Sterling silver is used in the assembly of jewelries, holloware and other silver containers.

Silversmithing
Silversmithing is the art of working with silver to make or restructure another object. Silversmithing is different from blacksmithing. To describe better, silversmithing is the science that utilizes flat silver sheet and forming it via tools. Hammers are very constructive and functional in silversmithing. They are used to crush the silver into a special contour and extent. Hammers come in different forms and purposes. One of the most commonly used hammers is known as the planishing hammer. It smooths the surface of the silver design. For sure, it is one handy completing tool. Aside from the planishing hammer, silversmiths also use blocks, anvils and stakes. They are used to hold the silver in place while they are being wrought and hammered.

Forms Of Silver
Just like gold, silver comes in a variety of forms.

People can invest in silver jewelries which are very eye catching and captivating. Sterling silvers are very desirable. Nevertheless, it can discolor after some time. Tarnish can appear as a result of corrosion. Then again, preventing the developing of tarnish is basic and fast. One can use the basic home remedies like baking soda, chalk and aluminum. Or possibly invest in quality silver finish that is proven to cushion the silver from tarnishing. Aside from silver jewelries, people can invest in silver coins and bullion. Coin dealers and coin collectors value these metals since these are very appealing items. As some items go back to the early 1900s. Truly, silver coins and bullion are not just artistic, they are monumental and significant. Of course, owning an old silver coin can make one stand with conceit and honor.

Gold futures advanced 1.7% Tuesday, regaining the $1,800-an-ounce mark as bargain hunters returned to the metal.

Gold for December delivery rose $30.20, or 1.7%, to settle at $1,809.10 an ounce on the Comex division of the New York Mercantile Exchange.

Large funds have also exited the trade, foreshadowing downward moves that could set gold back to lows around $1,700 an ounce, he added.

-Jack Farchy - The Globe and Mail

The gold market is revving up to reach new record highs in excess of $2,000 (U.S.) an ounce in the next year, according to the average forecast of bankers, traders and investors at the gold industry’s largest annual gathering.

The bullish prediction, if correct, suggests that the gold bull market remains intact, despite having already gained almost 30 per cent this year and 600 per cent over the past decade.

The widespread optimism at the London Bullion Market Association conference in Montreal, the largest gathering of the gold industry, comes as the gold market has been transformed from a backwater dominated by jewellery demand to one of the hottest investment assets.

The conference, which enjoyed a record attendance in excess of 500, predicted that gold would be trading at $2,019 an ounce at the time of next year’s meeting in November 2012. That would mark a fresh nominal record for gold, although it is still below the inflation-adjusted peak touched in 1980, which translates to more than $2,400 in today’s money.

The delegates at the LBMA conference have a strong record of predicting the trajectory of the gold price, although their forecasts have traditionally been overcautious. Last year, with gold trading at $1,298 an ounce, the conference predicted a price of $1,450. On Tuesday, bullion was trading at $1,805.70, down from a record peak of $1,920 in early September.

The forecasts, if accurate, bode well for hedge fund managers such as John Paulson of Paulson & Co and David Einhorn of Greenlight Capital, who bought gold in the financial crisis as a means of betting that governments and central banks would fail to safeguard their economies from the market turmoil.

Many hedge fund investors believe a sharp appreciation in the gold price is likely as they expect the eurozone debt crisis to deepen.

Despite the optimistic price predictions, traders were wary of growing volatility in the gold market, which has experienced some of the sharpest swings on record in recent weeks. Asked whether the market was in a bubble, 39 per cent of the traditionally bullish audience replied that it was. A growing number expect the market to accelerate in the next year or two and peak above $2,500.

“We expect to see $2,500 some time in the next 12 months,” said Som Seif, chief executive of Claymore Investments, a Canadian asset manager.

The most bullish forecast came from Pierre Lassonde, chairman of Franco-Nevada , who predicted that gold would reach parity with the Dow Jones industrial average index, at present trading at 11,400, within the next four to six years. “This bull market is far from over,” said Mr. Lassonde, whose predictions are optimistic even by the standards of market bulls.

A drop below $1,600 an ounce could mark the end of the rally for the next few months, traders believe – although many expect demand from Asian investors and central banks to prop up prices above that level.

Mr. Lassonde said: “I think there’s going to be a strong correction at some point and it’s going to set up the last phase that will take the market to numbers that few people can imagine.”

The bullish sentiment has been underpinned by the strength of demand for coins and small bars from retail investors from Germany to China.

Steven Nathan, marketing director at the Rand Refinery in South Africa, said that sales of the popular gold krugerrand coin were at a record level: “Demand is insatiable. It’s the strongest period ever right now.”

A comparable surge in demand was reported by other mints, refiners and coin dealers. “I just can’t see the price coming down,” said one senior precious metals banker. “Physical demand is incredibly strong.”

Gold recovered more than 1.5% on Monday, nearing its highest level in nearly a week, following a rise overseas where investors sought safety amid worries of worsening debt crisis in euro zone, and a weaker rupee back home.

Global gold gained 0.8%, extending a 1.2% rise in the previous session, as worries about a worsening debt crisis in the euro zone and the bloc’s future drove investors to seek safety in bullion.

The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 1.71% higher at Rs. 28,204 per 10 grams, after hitting an intra-day high of Rs. 28,235, nearing a level seen on 14 September.

Investors will focus on a policy meeting of the US Federal Reserve on Tuesday and Wednesday, where the Fed could take steps to increase downward pressure on longer term interest rates to help spur a recovery of the world’s largest economy.

The rupee fell more than 1% as mounting fears Europe’s sovereign debt troubles could trigger a full blown banking crisis curtailed risk appetite and sent shares and the euro lower.

The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

Physical buying retreated after a brief pick-up last week as an inauspicious period, when Indians pay homage to their ancestors, is underway.

“(The) rupee is weaker it is one of the important reason for the spike in local prices and still it is non-auspicious days of Shradh. So demand for the time being is not there,” said Sanjeev Garg, director with Delhi-based LMJ International, a commodities trading house.

Festival and wedding demand in India, the world’s biggest bullion consumer, will gain pace and peak in October and November, before tapering off in December.

Demand will always be here in India, and due to the uncertainty in equity markets, more and more people should diversify into gold, Garg said. – Reuters

Here in the U.S. ‘Karat’ with a ‘K’ is a measure of gold’s purity, whilst in other parts of the world it is spelt as ‘Carat’ with a ‘C’.

Because pure gold is naturally a soft, malleable metal, it is alloyed with other elements to strengthen it, which in turn can affect its color and cost.   Much of today’s gold is mixed with a percentage of alloys – metals that modifies the color of gold and makes it harder and stronger.   The karat mark in your gold jewlry tells you the percentage of pure gold to alloy.  The higher the karat quality the greater the proportion of gold it will contain.    So be sure to ask you jeweler to show you a selection and see what karat gold you are interested in.

The word ‘karat’ comes from Arabic, meaning “bean seed”, because years ago seeds were used to measure the weight of gold and precious stones.   Now though karat means the amount of gold an item of jewellery contains.   For example, pure gold is 24 karat or 99.9% pure – depending on the style, this might be quite soft, and so an alloy is added.

The higher the karat quality the greater the proportion of gold it will contain.  
Countries across the world allow different minimum karat standards.   For example, in France and Italy the lowest permitted standard for gold is 18 karat.   In the UK it is 9 karat, in Germany it is 8 karat, and in the USA, it is 10 karat gold.

Want to know more?   This table provides the various karatages and their equivalent gold content in percentage and fineness terms, as recognised by international standards which you might find useful.

Definition of karatage in gold content for recognised international standards

Gold still remains at all time highs, but it is clear if you want to capitalize on these phenomenal numbers now is the best time to start looking into selling your gold jewelry, watches, etc. With gold prices at over $1,800 now is the time to put some money in your pocket and capitalize on the wealth at hand. As the U.S. Dollar gains strength these numbers for gold are going to gradually fall says market watch's Claudia Assis.

Diamond and Gold Exchange is the number one store to sell your gold, diamond, and platinum jewelry in the Dallas / Fort Worth metroplex. That is why our slogan is truly, "Highest Cash Prices Paid for Gold and Diamonds in Dallas / Fort Worth"!

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By Claudia Assis, MarketWatch

SAN FRANCISCO (MarketWatch) — Gold futures inched down Thursday, failing to extend their winning streak to a third day as a rising dollar crimped commodities.

Traders reported quieter desks and thin volumes ahead of Monday’s Labor Day holiday in the U.S., making for a volatile week in commodities.

Gold for December delivery  declined $1.10, or 0.1%, to $1,830.60 an ounce on the Comex division of the New York Mercantile Exchange.

Gold has settled higher for the past two sessions.

In the absence of much news and ahead of the holiday, the stronger dollar was the main source of pressure for gold, said Adam Klopfenstein, a senior market strategist at MF Global in Chicago.

“With strength in the dollar it is hard to paint a positive picture for gold in the short term,” he said.

Some support came from lower U.S. equities, as some investors held on to their metal positions instead of switching to equities as they had in the recent past, Klopfenstein added.

U.S. stocks opened modestly higher but recently turned lower after flip-flopping in early trading.

“In the near term, there may be more room to the downside for gold,” said Jim Steel, an analyst with HSBC, in a note to clients. “In absence of any major event, the steep ($50 an ounce) rally earlier this week may encourage profit-taking. The downside should be limited, however,” he added.

The dollar index which compares the U.S. unit to a basket of six currencies, traded at 74.432 from 74.162 in North American trade late Wednesday.

A higher dollar is usually negative for commodities as it makes them more expensive for holders of other currencies.

Silver prices turned higher, with the December contract  the most active, advancing 46 cents, or 0.1%, to $41.75 per ounce.

Mexico has overtaken Peru as the world’s largest silver producer, HSBC’s Steel said, citing figures from Mexico’s statistics agency.

In the first half of 2011, Mexico’s total silver output was 1.88 million metric tons, compared to Peru’s 1.63 million metric tons, according to official data.

Mexico reported June production at 301,637 kilograms, up 4.2% from the previous month.

Silver mine production has been “robust,” unlike gold and other metals production, Steel said. “We expect this to help restrain silver gains,” he added.

GOLD rose 2 per cent overnight, boosted by weak US consumer confidence data, euro zone debt fears and a call by the Chicago Federal Reserve’s president for further action to help the US economy.

Gold accelerated gains early after Chicago Fed President Charles Evans told CNBC television he backs “some of the most aggressive policy actions” being considered by the Fed, adding the labour market looks to be in a recession.

Other perceived safe havens, such as Treasuries, also rose after data showed US consumer confidence crumbled in August to its lowest in more than two years.

A weaker-than-expected report on euro zone economic sentiment and renewed debt fears on Greece and Europe also boosted bullion buying.

“The weak US and European confidence data brought economic worries back to the forefront. There was strong European physical gold buying due to significant concerns about the growth prospect,” said Frank McGhee, head precious metals trader at Integrated Brokerage Services LLC.

Bullion has gained as much as 8 per cent in the last three sessions, supported after Fed Chairman Ben Bernanke last Friday raised hopes for a new market stimulus program.

Spot gold was up 2.7 per cent at $US1,835.19 an ounce by 2.38pm EDT (0438 AEST). Gold fell more than one per cent last week, when investors stripped more than $US200 off the price after it hit a record $US1,911.76 on August 23.

US gold futures for December delivery settled up $US38.20 at $US1,829.80 an ounce. Trading volume was modest but below the record levels logged last week.

Silver rose 1.6 per cent to $US41.44 an ounce.

Gold added slightly to gains after minutes from the Fed’s August 9 meeting showed the central bank considered a range of actions to help the US economy, including the unprecedented step of tying the interest rate policy outlook to a specific unemployment level.

“Certainly, there is very little confidence among the major macro-type investors about which way the global economy is going to go over the next three to six months,” said Tom Kendall at Credit Suisse.

“There is very little conviction one way or the other and that is very supportive of gold,” he said.

Despite Evans’ pro-stimulus comment, Minneapolis Fed President Narayana Kocherlakota on Tuesday stopped well short of signalling support for further easing.

The Fed is caught between a struggling recovery and high unemployment on one side, and political pressures against more monetary easing on the other. It has already pushed interest rates close to zero and bought $US2.3 trillion in bonds to try to lower longer-term borrowing costs.

Analysts now look forward to clearer guidance from the Fed’s next meeting in September, which has been extended for an extra day to consider possible further actions to boost economic growth.

Physical demand for gold is holding firm, and buying is expected to pick up in top consumer India, where the wedding season, traditionally the period of highest bullion demand, gets under way in September.

Analysts also cited strong physical buying from the Muslim celebration at the end of Ramadan, the Eid al-Fitr festival, a major gold-buying event.

Among platinum group metals, platinum was last up 1.9 per cent at $US1,852 an ounce, and palladium rose nearly three per cent to $US772.25 an ounce.

Throughout history, gold's mesmerizing beauty has inspired legends. Today, it is the premium choices of artisans worldwide for its ability to be molded into many luxurious designs.

Naturally yellow in color, gold will not tarnish. While it is strong, gold in its purest form is too soft for most jewelry uses and must be mixed-or alloyed-with other metals to increase its strength and durability. The color of gold is affected by the concentration of alloys such as nickel or copper. A high concentration of nickel creates white gold, while rose gold gets it color from a high percentage of copper.

Gold's purity is measured in karats which are used to indicate the percentage of gold. Pure, one hundred percent gold is 24 karat and is more expensive but not as durable as 18 karat (75 percent gold) or 14 karat (58.3 percent gold). When comparing gold jewelry, the higher the number of karats, the greater the value.

Karat weight is a key factor in determining price, along with the design and the degree of craftsmanship required to create a beautiful piece of jewelry.

By law, anything less than 10 karats cannot be sold as gold in the United States . The law also states that the karat mark and manufacturer's trademark must appear on the jewelry. In the United States , 14 karat is the most common gold jewelry sold.

Always look for the karat mark or "k" on the back of the jewelry. The markings are:

• 18 karat gold - 18k or 750 (the European designation meaning 75% gold)
• 14 karat gold - 14k or 585
• 10 karat gold - 10k or 417

Yellow Gold
The most common form of gold used, yellow gold is created with an alloy of silver, copper and zinc mixed with gold. The resulting yellow color reflects the natural color of the gold. Yellow and white gold are similar in strength and durability. It is the karat weight and design, not the color that determines the price.

White Gold
White gold is created by an alloy of nickel and other metals (copper and zinc) mixed with gold. Nickel is the largest component of this alloy, giving the gold a white color.

White gold can also be made with an alloy that contains a higher concentration of silver, making it a good choice for people with a sensitivity to nickel.

White gold is highly reflective and does not tarnish so it is common to add a layer of plating called "rhodium" plating that will protect the reflective quality of the white metal. This does not detract from the value of the metal.

While yellow and white gold are similar in strength and durability, it is karat weight and design, not the color that affects the price.

Rose Gold
Rose gold is alloyed with copper, and sometimes silver. The proportions are about one part of copper to three parts of 24 karat gold. The resulting gold has a reddish-rose hue. Rose gold is often used in the manufacture of three-color jewelry consisting of yellow, white and rose gold together.

PLATINUM

Sleek and elegant, platinum's natural white luster beautifully enhances a diamond's radiance. Thirty times rarer than gold and heavier, platinum is also the strongest of precious metals used in jewelry. Prongs set in platinum are more durable than those set in gold.

Platinum is more valuable than gold. Almost 160 tons of platinum are produced annually in comparison to approximately 1,500 tons of gold. In fact, 10 tons of ore must be mined to produce just one ounce of platinum.

Platinum's high melting point made it a difficult metal to use. Even with improved casting techniques, platinum remains expensive.

Yet its popularity continues to grow as consumers recognize its unique ability to bring out a diamond's brilliance.

Unlike gold, platinum is often 90 to 95 percent pure. It is frequently alloyed with gold, nickel, iridium, palladium, rhodium, or ruthenium. Platinum jewelry that meets the established standards is marked 900Pt, 950 Plat or Plat. In the United States, in order to be marked "Platinum" or "Plat," jewelry must contain at least 50 percent platinum.

Always look for the marking to ensure that the material is platinum and not white gold or another metal.

Platinum resists tarnishing. It is also hypoallergenic which makes it perfect for sensitive skin.

STERLING SILVER

Derived from the Latin for "white and shining," silver entices with its sophisticated sheen. Like gold, it is too soft in its purest form and cannot be used to make jewelry. Copper is the most frequently used alloy because it is very effective in adding durability to silver.

Sterling silver is a mixture of 92.5 percent pure silver and 7.5 percent copper. Silver is not designated with a karat weight; sterling silver is considered 92.5 percent pure.

Silver does tarnish, although frequent wear will minimize tarnishing. Often silver takes on a "patina" or finish that results from the contact of the silver with the person's unique skin chemistry.

Given silver's lower cost, it is a leading metal in fashion jewelry. In some cases, craftsman experiment with new and innovative designs in silver that are later duplicated in the more expensive gold and platinum.

Silver is popular with people who like a more casual look.

The story of gold is as rich and complex as the metal itself. Wars have been fought for it; love has been declared with it. Ancient Egyptian hieroglyphs portray gold as the brilliance of the sun; modern astronomers use mirrors coated with gold to capture images of the heavens.By 325 BC the Greeks had mined for gold from Gibraltar to Asia Minor. In 1848 AD John Marshall found flakes of gold whilst building a sawmill near Sacramento and so triggered the gold rush in California. The value of gold is undeniable.

Today gold prices are at all time highs at prices around $1,600 an ounce! Much like when your playing the stock market, there are times to buy and there are times to sell -- NOW IS THE TIME TO SELL!

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