If you are new to the business of metal refining, or to precious metals in general, you will quickly find that there can be a lot of jargon in typical transactions. Here are three important terms you should know when dealing in precious metals:

Karat and Carat – A karat (kt) is a measure of the purity of gold alloys. In the U.S. and Canada, the spelling is karat, but it is referred to as “carat” elsewhere in the world. This can be easily confused with another jeweler’s term – which is a unit of mass used to measure the weight of gemstones – also spelled as “carat,” as in “two carat diamond.” Karats are determined by dividing the mass of the metal by the amount of gold within the metal and multiplying by 24. Twenty-four karats is equal to pure gold, 18kt is equal to 75%, 12kt is 50%, and so on.

Pennyweight – The pennyweight, abbreviated as dwt, is a unit of weight measurement commonly used by jewelers and refiners to calculate the cost of a precious metal. Pennyweights are the measurement of choice at Manhattan Gold & Silver. However, many people don’t know how to measure in pennyweights. That’s why we provide a pennyweight conversion chart and calculator on our website.

Millesimal fineness – This is another system of measuring gold purity that many people find to be easier than the karat measurement. It simply denotes the gold in an alloy by parts per thousand. Millesimal fineness measurements are commonly stamped on precious metal products such as jewelry, dining sets, and bullion coins. For example, a gold coin stamped 750 would mean it is 75% pure gold. The term “nines fine” also refers to millesimal fineness. Gold stamped 900, or 90% is referred to as one nine fine. Gold that is 99.9% pure, or 999, is three nines fine.

The myth of King Midas and his golden touch has been told and retold as a fairy tale for centuries on end. However, it is not commonly known that this tale is really this etiological myth, i.e. a myth that explains a real-world phenomenon. In this case, they say the actions of King Midas account for the rich alluvial deposits of the Pactolus river.

According to the myth, King Midas earned the gratitude of Dionysus, Greek god of winemaking and revelry, for hosting the god’s mentor. As thanks, Dionysus agreed to grant Midas any wish he desired. Midas wished that whatever he touched would turn to gold. However, he soon realized his blessing was a curse when the food he tried to eat turned to gold and hugging his daughter resulted in the same.

Saddened and starving, Midas prayed to Dionysus to remove his golden touch. Dionysus answered and said that if Midas would wash his body in the river Pactolus, he would wash away his curse. When Midas did this, his powers washed away from him into the river.

The Pactolus was known for its rich deposits of electrum. The river was so rich in fact, that the ancient state of Lydia based its economy on it. In addition, the Lydians are credited with inventing the first gold coins in or around 7th century BCE. All thanks (mythically) to King Midas.

The legend of El Dorado has been around for hundreds of years. However, not many people are familiar with its intricacies. As a matter of fact, El Dorado, translated from Spanish as “the golden one” originally referred to a person.

As the Spanish explored the New World during the 16th century, they came across a tribe in the Columbian highlands, known as the Muisca. The tribe was rich in terms of both culture and wealth. However, of particular interest was their elaborate initiation ceremony for new tribal chiefs. After a short ritual seclusion, the chief-to-be travelled with his people to Lake Guatavita to make a sacrifice to their god. Once at the lake, they would build a raft and lavishly decorate it. The chief-to-be would board the raft, where he was then coated from head to toe in gold dust – becoming El Dorado. He also brought with him on the raft a pile of gold and gems. After being covered in gold, he would push this pile into the lake as a sacrifice and the ritual would be complete – cementing him as the new tribal chief.

Of course, such a tribe with gold to spare was quickly overrun with conquistadores. Gold was religiously significant to the Muisca, and one of their legends was based on an entire city made of gold, also called El Dorado. The conquistadores heard the tale from tribesmen they had captured, and so set off on a number of unsuccessful expeditions to find the mythical city.