The price of gold climbed bit by bit through the year and finished 24% higher than when the year began. Starting the year at $874.50 per ounce (London fix), gold prices soared over the anticipated high of $1200 per ounce to hit a new high of $1226.60 per ounce on December 3.
From January to June, there was an ample increase of 10%. The 2nd half of 2009 more than doubled that growth rate during the 1st half of the year. The substantial increase was partly due to an unexpected surge in prices in November, driven be the Indian Central Bank’s purchase of 200 tons of gold from the International Monetary Fund (IMF). China and Russia also made significant gold purchases in 2009 – causing speculation that other large banks may follow suit – shifting a portion of their holdings away from the US dollar and into gold. While this is sure to fuel the rise in the price of gold, it is also an indicator of the consumers’ negative sentiments toward the stability and value of the US dollar.
With the cumulative average gold price for 2009 just over $972 per ounce, the year proved to be worth its weight in gold. In terms of pounds, that would be $28,476,924.08!
1 avoirdupois pound = 14.583 troy ounces
2009 pounds x 14.583 ounces = 29297.247 troy ounces
29297.247 troy ounces x $972 = $28,476,924.08
Gold refining services are essential to industries that use gold everyday. When gold is used in industry, there is scrap, dust and other parts of the gold that are not used. With the price of gold rising steadily, it would be a huge waste of money, for these industries to let even the smallest amount of gold go to waste.
Over time when this scrap gold accumulates, industries need gold refining services. Typically the gold dust or unusable gold is sent to a refining center where it is tested, weighed, melted and then turned into bricks. The company that sent the gold is then sent money for whatever the gold is worth.
At Manhattan Gold & Silver, gold refining services are our top priority. We use the best equipment and process to ensure that the pay-out to the client is as much as it can be. Some of the processes we use include hand testing, melting and assaying.
Depending on how large the lot of gold is that is sent, determines which type of test we will conduct. Smaller lots sent for gold refining services will be hand tested, while larger amounts will be melted and assayed to determine the purity of the precious metal. After the gold is tested, it is melted and then turned into bricks. Our Flickr account page has a few pictures of some of the steps involved in our gold refining services
For nearly 25 years, Manhattan Gold & Silver
has been proud to be the trusted source of precious metal recycling services for jewelers, pawnbrokers, dentists and industrial users.
Recently it was announced that the Reserve Bank of India has just bought 220 tons of gold from the International Monetary Fund (IMF) for $6.7 billion. This may be a sign that other central banks may also move away from dollar-denominated assets like Treasury bonds in favor of the precious metal.
India’s huge purchase means that gold will now account for about 6 percent of India’s $285.5 billion of foreign exchange reserves — up from the previous level of about 4 percent.
News of the purchase of nearly half of the 403.3 metric tons of gold earmarked for sale by the IMF boosted gold prices, reminding investors that central bank reserve diversification will continue to fuel demand for the metal.
If you have any questions or are in need of gold refining services, or any other precious metals refining services, please contact Manhattan Gold & Silver today.