John Roberson, works at Finance
Updated Jan 14 · Upvoted by Franklin Parker, Chief Investment Officer for an ultra high net worth family & investment group and John Raymonds, CIO for a family office and business investor for over 20 yearsI’m a professional stock trader. Here are some common tools of our trade. WARNING: This is long. If you want a post that’s short or cute, this is not for you. Most important are the things you wouldn't expect. Risk management - Great traders keep their resources allocated to the best opportunities, all the time. They don't get emotional about losers, they cut them. They don't get too excited and cover winners early, they hold them until the trade is done. They step on the gas in good times and play smart in tough times for their strategies. Timing - Ordinary investors get caught up in the hype and buy high, then panic out and sell low. Great stock operators have better timing because they buy and sell based on considered strategies with defined entry and exit parameters. Execution - Implement the arbitrage strategy faster. Work through bids and offers efficiently to reduce slippage. Gather and interpret all that special data with super-fast computer systems. And you'll get better entries, reduced losses, more shares out at the best prices -- overall, a more precise implementation of your strategy. Layering - Imagine you’re a great value investor, and then you layer other advantages on top. You sell a lot of insurance and use it to provide low-cost leverage and tax benefits. You're big enough that you can negotiate deals at huge discounts to buy stock from giant corporations, or to get cheap financing. These are the lesser-known elements of Warren Buffett's success. Asymmetric Returns - Almost no successful stock traders make precise predictions of where stocks are headed, or have the kind of pat explanations of market behavior that television pundits immediately, constantly, and comprehensively give us. Rather, what they do is get into positions that will sometimes win and sometimes lose, but the wins will be much bigger than the losses overall. Give To Get - The market is a conversation. If you’re not contributing much to the conversation, don’t expect to get anything extra out of it. You might contribute new information, or make it easier for investors to move money easily at a good price. You might smooth out some inefficiencies that crop up, or lessen the blow of boom-bust cycles. For all but maybe three of the strategies below, traders’ profits are compensation for their contributions to the market. Okay, now on to some strategies! Activist Investing - You uncover massive fraud in a company, place a bet against its stock, then alert the public. Alternatively, you see a massive opportunity that a company isn't taking advantage of, buy enough of the company to make it do what you think it should, and profit when your changes work. Event-Driven - Expert in special events. A company splits into two stocks and you're the only one who knows one is worth twice as much as the other while everyone else thinks it's even. Buy low, sell high, then publish the truth and make 30% in a few days. Distressed - People dump the stocks of companies going bankrupt. If you know what you're looking for, you can get deep discounts on assets, or you can negotiate deals that give the company better prices in bankruptcy. Long/Short Equity - The vanilla hedge fund strategy. Pick the best and worst companies, buy the best, and sell the worst. Usually the reasons you hear on television: this company has the best strategy, that one has weak financials, the other industry is weak. Standard version, 130% of fund value bets on the market to go up while 30% bets on the market to go down, which means you're using a bit of borrowed money. Mix in some derivatives to hedge risk. Funds of Funds - Maybe you're no good at beating the market yourself, but you're good at picking which managers will. Build a portfolio of great managers. Macro - You have a picture of where the world is going and place bets on it. Gold is undervalued and primed for a pop. The British Pound is about to break through massive resistance. Money will rotate out of tech and into materials. Value - Buy good companies for cheap, and hold them for a long time. Commonly you're looking for great financial statements: hardy assets, minimal liabilities, robust earnings. Growth - Buy companies that are set to explode. Build a portfolio so that the small losses you see in those that don't work will be offset by the huge wins you see in those that do. Momentum - Stocks that are already going up tend to keep going up. Now, when they fall, they fall really hard. But historically, the expected value versus the market has been positive. Trend Following - When a market or sector is trending, get in stocks that have already formed trends and add in until they stop following their trends. Ideally you buy when a stock is in consolidation or correction within the trend. Technical Analysis - Looks at price action. There are lots of variants here, from standard Moving Averages to Elliott Wave and Darvas Boxes. Don't buy into the black magic versions, but most traders I know pay attention to, say, the 200-day moving average, which basically tells you how a stock has generally trended over the last year. Mean Reversion - The opposite of Trend Following. Profits when a stock has moved too far too fast, and it bets against the move. If a stock is massively overextended it's a mean reversion candidate. Breakouts - Stocks can hit thresholds of resistance where there is concentrated buying or selling pressure. When they pop through those buyers/sellers, often there is a lot of room for them to run. Identify those key points and when stocks will break them. Market-Making - Say that a stock is "really" worth $50/sh. If you want to buy or sell, you've got to buy or sell from someone. A market-maker buys or sells for a slight premium versus his model of the "real" value of a stock -- say, $49.95 or $50.05 for a $50.00 stock -- which takes the hassle out of finding a buyer or seller at exactly your price. Arbitrage - If Gold were trading in Chicago at $40/oz and in New York at $50/oz, you would buy all you could at $40 and sell it at $50, as fast as you could. That's arbitrage. Today such opportunities still exist when we cross different markets and exchanges, though they're typically rare and small. There's also opportunity for those who have great pricing models for sophisticated derivatives, or things like credit spreads. Exchange Rules - There is a complex ecosystem of rules among venues for stock trading (arca, nsdq, bats, edgx, iex, etc.). In some circumstances you get a rebate, in others you pay a fee. If you can navigate this deftly but others can't, you may be able to pick up the difference between rebate and fee. Undeveloped Markets - Any market without capable eyes on it will have lots of inefficiency. Arbitrage, trending, massively overextended moves, and so on. Bitcoin was free money for market-makers early on. This could be obscure derivatives, young foreign stock markets, whatever. Early Information - You send an analyst to a courtroom so that you know the results of an important case first. You post people at gas stations to count the trucks coming out of a warehouse, so you can estimate the change in sales before anyone else. You use satellite imagery to model construction patterns across the globe. Regulations - Ordinarily companies release big-time information quarterly and annually. Sometimes they are forced to reveal that information early due to obscure regulations. If you know which random agency or tiny country they report to early, you can trade on the information before the rest of the market. Quantitative - Typically these guys use ordinary strategies, but they do it with computers. So they do market-making with massive statistical models, or their computers read news headlines, or they learn about a company's fundamentals from its customers on social media, or their intricate derivatives formulas spit out easy numbers in an instant. Market Player Constraints - Lots of big players have somewhat arbitrary rules, such as constraints placed on pension managers or mutual funds. Whole classes of investment dollars sell out when stocks fall below $5 or $1. Tax-loss harvesting at the end of the year from robo-advisors. Stocks that have just gone to the pink sheets, or just declared bankruptcy. Market Player Behavior - By knowing other strategies' behavior, you can anticipate moves. You watch for that bump when a stock falls into the parameters of value players, growth players, momentum players. You model when a stock will be added to this or that index and/or ETF. Access - Maybe you have an IPO pipeline due to relationships at major banks. Since IPOs are intentionally priced to climb 10% or so in the short term, you can flip them easily. Or maybe you're the only player with serious access to a particular market (ability to use computerized systems, ability to place lots of orders, ability to sell short), so that you can do big boy market-making with no competition. Work For Congress - Lawmakers have hugely significant inside information about the treatment of industries and even particular companies... and it's legal for them to trade on it! Supposedly very few of them successfully parlay this informational advantage into meaningful profits. Michael Hayter helpfully pointed out in the comments that this was the subject of recent legislation, and what I wrote in this paragraph is outdated. Other People’s Money - It’s really easy to come up with a strategy that pays off most of the time, so long as you’re willing to lose it all once every few years. The compensation structures with certain banks, funds, and government relationships allow you to profit massively during the good times and pass off all the losses onto someone else. Disclaimer: This is information, not recommendation. These strategies have been successful for people who are really good at them. All of them are likely to blow up in your face if you’re not really good at them… and possibly even then. Role of Investment Banks in TradingOne of a large investment bank's primary functions is the buying and selling of financial products.
Investment banks are involved in trading in two main ways. Firstly in proprietary trading, that is trading on the bank's own behalf, putting the banks own capital at risk in doing so; and, secondly, by trading on behalf of its clients. Traders in investment banks aim to make money on each trade. They do this by buying securities and other financial instruments at a lower price than the price at which they sell them to investors, or by selling them to investors at a higher price than they buy them back. This way they can make money in both rising or falling markets. Being prepared to both buy and sell a particular security is known as market making. Proprietary trading is performed by a special set of traders who do not interface with clients. If a trader gets it wrong, they could lose vast amounts of money, but if it goes well, they can make huge amounts of money. The risk department of an investment bank considers the risks traders are taking and external regulators set risk limits against the capital that the bank holds. Investment banks also advise clients about buying stocks, bonds and other securities. Sales staff will call on institutional investors, corporations and wealthy investors to suggest trading ideas and take orders. These are then passed to the trading desk which will price the requirements and make the trades. Where appropriate, they will also structure new products that fit a specific need. Another service a bank offers for larger investors is 'asset management'. This is when a bank manages a client's investments and invests on their behalf. Asset management gives clients access to a wider range of product offerings than would be available to the average investor. Investment banks have created a broad array of investment products to go along with traditional stocks and bonds. They use derivatives (futures and options) to create complex structured products which usually offer much greater margins and returns than the underlying securities. Although investment banks do not normally deal with individuals, they may offer financial planning and investment advice for individuals with high net worth (those whose liquid assets are over $1 billion). The more money a person has, the more work it takes to maintain and preserve those assets. These high net worth individuals have a lot in common with institutional investors. Because of their wealth, they have the means to access a larger variety of conventional and alternative investments than normal investors. Services are customised for the individuals and, typically, include advice for trusts, real estate and businesses, as well as general stock investing. This is known as private wealth management. Investment Banking
Raising Funds by using the Investment Markets Investment banks are banks, or divisions of banks, that help businesses or governments raise money by using the investment markets. When an institution needs to raise money by issuing stocks or bonds, then an investment bank will advise them and help them through the process. They will also underwrite and distribute (find buyers for) the issue. Investment banks also help companies that want to merge or takeover another business. They sell securities to investors and may also provide a wide range of other services such as asset management (managing a client's investments) and private wealth management (customised investment and financial planning for wealthy clients). Main points about Investment Banks:Investment banks help companies, governments and other public institutions use the investment markets, to raise capital needed for new projects and ongoing operations, by issuing or trading securities (shares and bonds). Investment banks deal mainly with large organisations, other investment banks and institutional investors. They do not deal with the general public. They tend to be found in large cities such as London and New York. When these clients need to raise money (capital), they can hire an investment bank to advise them. The bank will determine the amount of funding required and how this is structured, i.e. how much equity (shares) or debt (bonds). Investment banks advise companies when they want to raise capital by floating the company on the stock exchange (known as an Inital Public Offering). They determine the number and value of the shares to be issued and distribute and time the release of this new stock. Investment banks will also assist companies with secondary share issues and help companies, governments and other public institutions to raise capital by issuing debt (bonds); they will help with distributing the new securities, usually to other banks and institutional investors. Investment banks not only help with the issuing of shares and bonds but also will underwrite the new securities issued by their clients, for a fee: that means they agree to purchase the securities if they fail to sell. For very large issues, several investment banks may work together, with one being the lead underwriter. Some investment banks are also involved in private equity. This is finding buyers for private share offerings. Companies that are in private ownership, i.e. are not floated on the stock exchange, may wish to raise capital to expand or even to take a public company, or part of it, back into private ownership. Other key areas which investment banks undertake are mergers and acquisitions (M&A). They are involved in setting up deals and advising the world's largest organisations when they want to merge or take over another business. M&A is an important source of income for many investment banks. Even in a recession, strategic mergers continue to happen and banks that specialise in M&A continue to do deals, although at a lower volume. In recent years, investment banks have also been increasingly involved in management buy-outs. When these require a high level of borrowing, they are known as leverage buy-outs (LBOs). The banks will advise on the process and help with raising the funding, sometimes even taking their own investment stake (known as merchant banking). Investment banks also trade stocks, bonds, derivatives (futures and options) and currencies with commercial banks and large institutional investors, on the secondary markets. They make money by buying securities and other commodities as cheaply as possible and then selling them on for as much money as possible. Investment banks also advise clients about buying stocks, bonds and other securities. For larger clients, they will also manage their investments and invest on their behalf. This is known as asset management. In recent years some banks have moved into other areas, such as investing pension contributions on behalf of companies (more usually associated with institutional investors) and private wealth management, that is advising wealthy individuals on managing and maintaining their wealth. Investment banks make their money by charging fees for their advice and by trading securities and other financial instruments. History
The Early Years It is hard to imagine the billionaire Warren Buffett as a small child, enjoying the guidance of loving parents in a politically-enthralled home in the Great Plains region of the United States. Warren Edward Buffett was born in Omaha, Nebraska to the U.S. Representative Howard Buffet and his stay-at-home wife Leila in 1930. He was the second of three children, and the only son of the soon-to-be four-term Senator. When Warren was 12, the Buffett family moved to Washington D.C. as a result of his father’s political career. As a child, Warren began peddling goods like sodas, bubble gum and newspapers around his neighborhood for money. While attending Woodrow Wilson High School, he earned some money working at his grandfather’s grocery store. He supplemented the income with detailing cars and selling newspapers, golf balls, and stamps. At the age of 14, Warren Buffet filed his first tax return, totaling $35,using his bicycle and watch as deductions, as they were part of his fixed expenses when delivering newspapers. By the time he was well into his sophomore year, Warren had partnered with a friend and split the cost of a $25 pinball machine. They placed the arcade game in a barber shop, and enjoyed the benefits of the pocket change from customers who were biding their time waiting for a cut or shave. No more than three months passed before the boys had pinball machines in several barber shops around town. Warren Buffett sold the pinball business to a war veteran the same year for about $1,200. Upon his graduation in 1947, Warren was listed in his yearbook as someone who “Likes math: Future stockbroker.” Early Brushes with Stocks Warren had the influence of his father’s stock brokerage company to guide him down a path of success. As a child, he would steal away into the customer’s lounge of the regional stock brokerage near his father’s office and watch investors at work. He was ten years old when he made his first trip to the New York Stock Exchange in lower Manhattan. Bitten by the bug of investing, Warren made his first stock purchase at the age of 11. He bought three shares of Cities Service for himself, and three for his sister. That company later became what is known as Citgo, the petroleum giant. Ownership Ignited: First Business Opportunities While other kids were worried about World War II and how the depression was affecting their families, Warren Buffett was thinking ahead. In high school, he invested in a company that was primarily owned by his father by purchasing a 40 acre farm operated by a tenant farmer. He spent a total of $1,200—the same amount he sold his pinball business for a few years earlier. The College Years Buffett enrolled in the University of Pennsylvania’s Wharton Business School in 1947 and joined the fraternity of Alpha Sigma Phi. He studied there for only two years before transferring to the University of Nebraska-Lincoln, where Warren graduated at age 19 with a Bachelor of Science in Business Administration. Though he was turned away from Harvard Business School, Buffett enrolled instead in the Columbia Business School after finding out his favorite financial author, Benjamin Graham, was on staff. He graduated with a Master of Science in Economics in 1951. After graduation, he attended the New York Institute of Finance. Business Beckons; Success Answers Buffett started his working career as an investment salesman at Buffett-Faulk & Co. He worked there from 1951 to 1954. After that, Buffett had a short stay with the Graham-Newman Corp as a securities analyst from 1954 to 1956. From 1956 to 1970, Buffett was a general partner with Buffett Partnership, Ltd. Then, in 1970, he took the position of Chairman and CEO at Berkshire Hathaway, where he remains to this day. This publicly-traded conglomerate operates with revenues of over $162 billion dollars per year. It is also the sole owner of Dairy Queen, Fruit of the Loom, GEICO, Helzberg Diamonds and NetJets, among others. The company also owns half of Heinz and a significant minority share in American Express, IBM, M&T Bank, and Proctor Gamble. Berkshire Hathaway was listed as the 4th most successful American company in 2015 by Fortune. Personal Life Warren Buffett married Susan Thompson in 1952. The couple had three children: one girl and two boys. Although they began living separately 1977, the couple remained married until Susan’s death in 2004. During their separation, Warren had a committed relationship with a woman named Astrid Menks, who began living with Buffett after Susan moved out in 1977 to pursue a singing career in San Francisco. Ms. Menks and Warren Buffett were married in 2006 on Buffett’s 76th birthday. She was 60 years old. The two remain a together and live together happily in Omaha, Nebraska—his birthplace, and headquarters of Berkshire Hathaway. After a health scare from being diagnosed with prostate cancer in April of 2012, Mr. Buffett announced that he is cancer free, and happy to have the illness behind him after 44 days of a radiation treatment cycle. Berkshire HathawayIt isn’t possible to study the great Warren Buffett without understanding the holdings company that he built. Berkshire Hathaway, although not a household name, is one of the most influential companies in the 20th and 21st century. Millions of people interact with Berkshire Hathaway companies every day, and its daily happenings and history are interesting for both business and investing enthusiasts.
Check out the current Berkshire Hathaway news or read any of the articles below for more information on this powerful corporation. History of Berkshire HathawayWith a history that spans more than 100 years, Berkshire Hathaway was around long before Warren Buffett and has had its shares of ups and downs. This complete history spans the origins of Berkshire Hathaway all the way to the current record-breaking share prices experienced under the leadership of the Oracle of Omaha. Click here to read. 25 Quick Facts about Berkshire HathawayAs a multi-billion dollar company, there is plenty of information about Berkshire Hathaway. This list will give you a glimpse of some of the most interesting facts about the sixth largest company in the world. Click here to read. Board of Director BiosWarren Edward Buffett Charles Thomas Munger Howard Graham Buffett Ronald L. Olson Meryl B. Witmer William Henry Gates Stephen B. Burke Thomas S. Murphy David Sanford Gottesman Susan L. Decker Walter Scott Jr. Charlotte M. Guyman Subsidiary CompaniesAcme Brick Company Applied Underwriters Ben Bridge Jewelers Benjamin Moore & Co. Berkshire Hathaway Automotive Berkshire Hathaway Energy Company Berkshire Hathaway GUARD Insurance Companies Berkshire Hathaway Homestate companies Berkshire Hathaway Specialty Insurance BH Media Group BoatU.S. Borsheims Fine Jewelry Brooks Buffalo NEWS, Buffalo, NY BNSF Business Wire Central States Indemnity Company Charter Brokerage Clayton Homes CORT Business Services CBT Inc. Duracell Fechheimer Brothers Company Flight Safety Forest River Fruit of the Loom Companies Garan Incorporated Gateway Underwriters Agency GEICO Auto Insurance General Re Helzberg Diamonds H.H. Brown Shoe Group HomeServices of America International Dairy Queen, Inc. IMC International Metalworking Companies Johns Manville Jordan’s Furniture Justin Brands Kraft Heinz Larson-Juhl Louis – Motorcycle & Leisure Lubrizol Corporation Marmon Holdings, Inc McLane Company MedPro Group MiTek Inc. National Indemnity Company Nebraska Furniture Mart NetJets® Oriental Trading Company Pampered Chef® Precision Castparts Corp. Precision Steel Warehouse, Inc. RC Willey Home Furnishings Richline Group Scott Fetzer Companies See’s Candies Shaw Industries Star Furniture TTI. Inc United States Liability Insurance Group XTRA Corporation Warren Buffett’s 10 Ways to Get Rich
With an estimated fortune of $62 billion, Warren Buffett is the richest man in the entire world. In 1962, when he began buying stock in Berkshire Hathaway, a share cost $7.50. Today, Warren Buffett, 78, is Berkshire’s chairman and CEO, and one share of the company’s class A stock worth close to $119,000. He credits his astonishing success to several key strategies, which he has shared with writer Alice Schroeder. She spent hundreds of hours interviewing the Sage of Omaha for the new authorized biography The Snowball. Here are some of Warren Buffett’s money-making secrets — and how they could work for you.
- By Nicholas Kitonyi
The future of the cryptocurrency industry is still clouded with doubt since Warren Buffett (Trades, Portfolio) has been one of the biggest critics of the market. Bitcoin is, by far, the leading unit in the cryptocurrency market and based on Buffett's comments over time, it is fair to say the legendary investor does not value it at all, let alone imagine a bright future ahead.
In 2014, just after bitcoin hit an all-time high, Buffett warned investors to stay away from it, saying it was nothing more than a mirage. In response to a question regarding cryptocurrency by Dan Gilbert, the Quicken Loans founder, he said: "It's a method of transmitting money. It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money? Are money orders? You can transmit money by money orders. People do it. I hope bitcoin becomes a better way of doing it, but you can replicate it a bunch of different ways and it will be. The idea that it has some huge intrinsic value is just a joke in my view." When asked about bitcoin's future on CNBC's Squawk Box, Buffett said, "Stay away from it. It's a mirage, basically." True to his word, bitcoin lost more than 80% of its value within the following year (falling from more than $1,000 a coin in December 2013 to about $200 in January 2015). After a 12-month hiatus in 2015 however, bitcoin has since recovered to rally close to the $1,000 level. View photos As demonstrated in the chart above, bitcoin's price appears to have picked up momentum over the last 12 months in a trend that took it to above $1,000 at the start of the year. Unlike the previous rally that took the price to an all-time high, this time around the trend has been more stable, with significant trackbacks and rebounds. In 2013, the price of bitcoin spiked from a trading price of under $250 per unit to more than $1,000 within a couple of months as traders bought bullishly in a frenzy. Now, based on the current Bitcoin price and its fluctuations over the last three years, it is safe to say the cryptocurrency has stabilized. As such, it looks as though bitcoin can be billed to have succeeded thus far. This is backed by the fact that several other companies, including BitGold and OneCoin, have launched their own types of cryptocurrencies. This also shows people are putting trust in the infrastructure used by cryptocurrency companies to generate and manage the exchange of such currencies. Blockchain, the infrastructure that supports bitcoin and several other applications, looks set to continue growing given the success of bitcoin thus far. Therefore, major technology companies like International Business Machines (IBM) and Microsoft Corp. (MSFT) are looking to capitalize on the current bullish outlook of this technology and, as per recent reports, some are making huge investments in the market. Blockchain is a new software technology that allows businesses to work together with trust and transparency. The network allows all parties involved access to an encrypted digital record of transactions that cannot be changed. The technology can be applied in a variety of industries, especially in the financial sector. As of 2016, the blockchain market was valued at $210 million, but is projected to grow to more than $2 billion within the next five years. Some of the biggest concerns facing bitcoin are issues regarding the security of transactions and its ability to deal with cases of money laundering. If more industries like the banking sector continue to use the same technology used by bitcoin however, this might work out to be a vote of approval for using bitcoin as a currency. Nonetheless, this still does not answer Buffett's question on bitcoin. His keynote view was the fact that bitcoin is nothing more than a means of transmitting money, which means it is hard for it to gain intrinsic value over time. However, when you assess Bitcoin as a currency, then we do know that all currencies have a certain value allocated to them. Paper currencies rely on the economic performance of a given country to gain or lose value. On the other hand, bitcoin is not tied to any individual country, which again raises the question of where the value creation comes from. It is simple. The U.S. dollar does not strengthen against other currencies because of the strength of the U.S. economy, but rather because of the stability investors believe it possesses. As such, bitcoin traders have been betting on the cryptocurrency market believing it can provide the most stable currency in the future. That is why bitcoin has been rallying over the last 12 months. Conclusion In summary, Buffett might be right in the end about bitcoin's valuation being unreal. Given the current advances in the payments market and the growing use of internet banking across the world however, it is clear the cryptocurrency market remains to be a potential disruptor with bitcoin at the center of it all. Disclosure: I have no position in any stock mentioned in this article. Start a free 7-day trial of Premium Membership to GuruFocus. This article first appeared on GuruFocus. GoldFrom Wikipedia, the free encyclopedia
"Element 79" redirects here. For the short story and anthology by Fred Hoyle, see Element 79 (anthology). This article is about the element. For the color, see Gold (color). For other uses, see Gold (disambiguation). Gold, 79Au General properties Name, symbolgold, Au Pronunciation/ˈɡoʊld/ gohld Appearancemetallic yellow Gold in the periodic table Ag ↑ Au ↓ Rg platinum ← gold → mercury Atomic number (Z)79 Group, blockgroup 11, d-block Periodperiod 6 Element category transition metal Standard atomic weight (±) (Ar)196.966569(5)[1] Electron configuration[Xe] 4f14 5d10 6s1 per shell2, 8, 18, 32, 18, 1 Physical properties Phasesolid Melting point1337.33 K (1064.18 °C, 1947.52 °F) Boiling point3243 K (2970 °C, 5378 °F) Density near r.t.19.30 g/cm3 when liquid, at m.p.17.31 g/cm3 Heat of fusion12.55 kJ/mol Heat of vaporization342 kJ/mol Molar heat capacity25.418 J/(mol·K) Vapor pressure P (Pa)1101001 k10 k100 k at T (K)164618142021228126203078 Atomic properties Oxidation states5, 3, 2, 1, −1, −2, −3 (an amphoteric oxide) ElectronegativityPauling scale: 2.54 Ionization energies1st: 890.1 kJ/mol 2nd: 1980 kJ/mol Atomic radiusempirical: 144 pm Covalent radius136±6 pm Van der Waals radius166 pm Miscellanea Crystal structureface-centered cubic (fcc) Speed of soundthin rod2030 m/s (at r.t.) Thermal expansion14.2 µm/(m·K) (at 25 °C) Thermal conductivity318 W/(m·K) Electrical resistivity22.14 nΩ·m (at 20 °C) Magnetic orderingdiamagnetic[2] Magnetic susceptibility (χmol)−28.0·10−6 cm3/mol (at 296 K)[3] Tensile strength120 MPa Young's modulus79 GPa Shear modulus27 GPa Bulk modulus180 GPa[4] Poisson ratio0.4 Mohs hardness2.5 Vickers hardness188–216 MPa Brinell hardness188–245 MPa CAS Number7440-57-5 History Namingfrom Latin aurum, meaning gold DiscoveryIn the Middle East(before 6000 BCE) Most stable isotopes of gold isoNAhalf-lifeDMDE (MeV)DP 195Ausyn186.10 dε0.227195Pt 196Ausyn6.183 dε1.506196Pt β−0.686196Hg 197Au100%is stable with 118 neutrons 198Ausyn2.69517 dβ−1.372198Hg 199Ausyn3.169 dβ−0.453199Hg | references | in WikidataGold is a chemical element with the symbol Au (from Latin: aurum) and the atomic number 79. In its purest form, it is a bright, slightly reddish yellow, dense, soft, malleable, and ductile metal. Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive chemical elements and is solid under standard conditions. Gold often occurs in free elemental (native) form, as nuggets or grains, in rocks, in veins, and in alluvial deposits. It occurs in a solid solution series with the native element silver (as electrum) and also naturally alloyed with copper and palladium. Less commonly, it occurs in minerals as gold compounds, often with tellurium (gold tellurides). Gold's atomic number of 79 makes it one of the higher numbered, naturally occurring elements. It is thought to have been produced in supernova nucleosynthesis, from the collision of neutron stars,[5] and to have been present in the dust from which the Solar System formed. Because the Earth was molten when it was formed, almost all of the gold present in the early Earth probably sank into the planetary core. Therefore, most of the gold that is present today in the Earth's crust and mantle is thought to have been delivered to Earth later, by asteroid impacts during the Late Heavy Bombardment, about 4 billion years ago.[6][7] Gold is resistant to most acids. But it dissolves in aqua regia, a mixture of nitric acid and hydrochloric acid, which forms a soluble tetrachloroaurate anion. Gold is insoluble in nitric acid, which dissolves silver and base metals, a property that has long been used to refine gold and to confirm the presence of gold in metallic objects, giving rise to the term acid test. Gold also dissolves in alkaline solutions of cyanide, which are used in mining and electroplating. Gold dissolves in mercury, forming amalgam alloys, but this is not a chemical reaction. Historically, the value of gold was rooted in its relative rarity, easy handling and minting, easy smelting and fabrication, resistance to corrosion and other chemical reactions (nobility), and distinctive color[citation needed]. As a precious metal, gold has been used for coinage, jewelry, and other arts throughout recorded history. In the past, a gold standard was often implemented as a monetary policy, but gold coins ceased to be minted as a circulating currency in the 1930s, and the world gold standard was abandoned for a fiat currency system after 1976. A total of 186,700 tonnes of gold is in existence above ground, as of 2015.[8] The world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry.[9] Gold's high malleability, ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity have led to its continued use in corrosion resistant electrical connectors in all types of computerized devices (its chief industrial use). Gold is also used in infrared shielding, colored-glass production, gold leafing, and tooth restoration. Certain gold salts are still used as anti-inflammatories in medicine. As of 2014, the world's largest gold producer by far was China with 450 tonnes.[10] Contents [hide]
Etymology"Gold" is cognate with similar words in many Germanic languages, deriving via Proto-Germanic *gulþą from Proto-Indo-European *ǵʰelh₃- ("to shine, to gleam; to be yellow or green").[11][12] The symbol Au is from the Latin: aurum, the Latin word for "gold".[13] The Proto-Indo-European ancestor of aurum was *h₂é-h₂us-o-, meaning "glow". This word is derived from the same root (Proto-Indo-European *h₂u̯es- "to dawn") as *h₂éu̯sōs, the ancestor of the Latin word Aurora, "dawn".[14] This etymological relationship is presumably behind the frequent claim in scientific publications that aurum meant "shining dawn".[15] Characteristics Gold is extremely ductile. It can be drawn into a monoatomic wire, and then stretched about twice before it breaks.[16]Gold is the most malleable of all metals; a single gram can be beaten into a sheet of 1 square meter, and an avoirdupois ounce into 300 square feet. Gold leaf can be beaten thin enough to become semi-transparent. The transmitted light appears greenish blue, because gold strongly reflects yellow and red.[17] Such semi-transparent sheets also strongly reflect infrared light, making them useful as infrared (radiant heat) shields in visors of heat-resistant suits, and in sun-visors for spacesuits.[18] Gold is a good conductor of heat and electricity. Gold has a density of 19.3 g/cm3, almost identical to that of tungsten at 19.25 g/cm3; as such, tungsten has been used in counterfeiting of gold bars, such as by plating a tungsten bar with gold,[19][20][21][22] or taking an existing gold bar, drilling holes, and replacing the removed gold with tungsten rods.[23] By comparison, the density of lead is 11.34 g/cm3, and that of the densest element, osmium, is 22.588 ± 0.015 g/cm3.[24] Chemistry Gold(III) chloride solution in waterAlthough gold is the most noble of the noble metals,[25][26] it still forms many diverse compounds. The oxidation state of gold in its compounds ranges from −1 to +5, but Au(I) and Au(III) dominate its chemistry. Au(I), referred to as the aurous ion, is the most common oxidation state with soft ligands such as thioethers, thiolates, and tertiary phosphines. Au(I) compounds are typically linear. A good example is Au(CN)2−, which is the soluble form of gold encountered in mining. The binary gold halides, such as AuCl, form zigzag polymeric chains, again featuring linear coordination at Au. Most drugs based on gold are Au(I) derivatives.[27] Au(III) (auric) is a common oxidation state, and is illustrated by gold(III) chloride, Au2Cl6. The gold atom centers in Au(III) complexes, like other d8 compounds, are typically square planar, with chemical bonds that have both covalent and ionic character. Gold does not react with oxygen at any temperature;[28] similarly, it does not react with ozone[citation needed]. Some free halogens react with gold.[29] Gold is strongly attacked by fluorine at dull-red heat[30] to form gold(III) fluoride. Powdered gold reacts with chlorine at 180 °C to form AuCl3.[31] Gold reacts with bromine at 140 °C to form gold(III) bromide, but reacts only very slowly with iodine to form the monoiodide. Gold does not react with sulfur directly,[32] but gold(III) sulfide can be made by passing hydrogen sulfide through a dilute solution of gold(III) chloride or chlorauric acid. Gold readily dissolves in mercury at room temperature to form an amalgam, and forms alloys with many other metals at higher temperatures. These alloys can be produced to modify the hardness and other metallurgical properties, to control melting point or to create exotic colors.[33] Gold reacts with potassium, rubidium, caesium, or tetramethylammonium, to form the respective auride salts, containing the Au− ion. Caesium auride is perhaps the most famous. Gold is unaffected by most acids. It does not react with hydrofluoric, hydrochloric, hydrobromic, hydriodic, sulfuric, or nitric acid. It does react with aqua regia, a mixture of nitric and hydrochloric acids, and with selenic acid. Aqua regia, a 1:3 mixture of nitric acid and hydrochloric acid, dissolves gold. Nitric acid oxidizes the metal to +3 ions, but only in minute amounts, typically undetectable in the pure acid because of the chemical equilibrium of the reaction. However, the ions are removed from the equilibrium by hydrochloric acid, forming AuCl4− ions, or chloroauric acid, thereby enabling further oxidation. Gold is similarly unaffected by most bases. It does not react with aqueous, solid, or molten sodium or potassium hydroxide. It does however, react with sodium or potassium cyanide under alkaline conditions when oxygen is present to form soluble complexes.[32] Common oxidation states of gold include +1 (gold(I) or aurous compounds) and +3 (gold(III) or auric compounds). Gold ions in solution are readily reduced and precipitated as metal by adding any other metal as the reducing agent. The added metal is oxidized and dissolves, allowing the gold to be displaced from solution and be recovered as a solid precipitate. Less common oxidation statesLess common oxidation states of gold include −1, +2, and +5. The −1 oxidation state occurs in compounds containing the Au− anion, called aurides. Caesium auride (CsAu), for example, crystallizes in the caesium chloride motif.[34] Other aurides include those of Rb+, K+, and tetramethylammonium (CH3)4N+.[35] Gold has the highest Pauling electronegativity of any metal, with a value of 2.54, making the auride anion relatively stable. Gold(II) compounds are usually diamagnetic with Au–Au bonds such as [Au(CH2)2P(C6H5)2]2Cl2. The evaporation of a solution of Au(OH) 3 in concentrated H 2SO 4 produces red crystals of gold(II) sulfate, Au2(SO4)2. Originally thought to be a mixed-valence compound, it has been shown to contain Au4+ 2 cations, analogous to the better-known mercury(I) ion, Hg2+ 2 .[36][37] A gold(II) complex, the tetraxenonogold(II) cation, which contains xenon as a ligand, occurs in [AuXe4](Sb2F11)2.[38] Gold pentafluoride, along with its derivative anion, AuF− 6, and its difluorine complex, gold heptafluoride, is the sole example of gold(V), the highest verified oxidation state.[39] Some gold compounds exhibit aurophilic bonding, which describes the tendency of gold ions to interact at distances that are too long to be a conventional Au–Au bond but shorter than van der Waals bonding. The interaction is estimated to be comparable in strength to that of a hydrogen bond. Mixed valence compoundsWell-defined cluster compounds are numerous.[35] In such cases, gold has a fractional oxidation state. A representative example is the octahedral species {Au(P(C6H5)3)}62+. Gold chalcogenides, such as gold sulfide, feature equal amounts of Au(I) and Au(III). Color Different colors of Ag-Au-Cu alloysWhereas most metals are gray or silvery white, gold is slightly reddish yellow.[40] This color is determined by the density of loosely bound (valence) electrons; those electrons oscillate as a collective "plasma" medium described in terms of a quasiparticle called a plasmon. The frequency of these oscillations lies in the ultraviolet range for most metals, but it falls into the visible range for gold due to subtle relativistic effects that affect the orbitals around gold atoms.[41][42] Similar effects impart a golden hue to metallic caesium. Common colored gold alloys include the distinctive eighteen-karat rose gold created by the addition of copper. Alloys containing palladium or nickel are also important in commercial jewelry as these produce white gold alloys. Fourteen-karat gold-copper alloy is nearly identical in color to certain bronze alloys, and both may be used to produce police and other badges. White gold alloys can be made with palladium or nickel. Fourteen- and eighteen-karat gold alloys with silver alone appear greenish-yellow and are referred to as green gold. Blue gold can be made by alloying with iron, and purple gold can be made by alloying with aluminium. Less commonly, addition of manganese, aluminium,indium and other elements can produce more unusual colors of gold for various applications.[33] Colloidal gold, used by electron-microscopists, is red if the particles are small; larger particles of colloidal gold are blue. IsotopesMain article: Isotopes of goldGold has only one stable isotope, 197 Au, which is also its only naturally occurring isotope, so gold is both a mononuclidic and monoisotopic element. Thirty-six radioisotopes have been synthesized ranging in atomic mass from 169 to 205. The most stable of these is 195 Au with a half-life of 186.1 days. The least stable is 171 Au, which decays by proton emission with a half-life of 30 µs. Most of gold's radioisotopes with atomic masses below 197 decay by some combination of proton emission, α decay, and β+ decay. The exceptions are 195 Au, which decays by electron capture, and 196 Au, which decays most often by electron capture (93%) with a minor β− decay path (7%).[43] All of gold's radioisotopes with atomic masses above 197 decay by β− decay.[44] At least 32 nuclear isomers have also been characterized, ranging in atomic mass from 170 to 200. Within that range, only 178 Au, 180 Au, 181 Au, 182 Au, and 188 Au do not have isomers. Gold's most stable isomer is 198m2 Au with a half-life of 2.27 days. Gold's least stable isomer is 177m2 Au with a half-life of only 7 ns. 184m1 Au has three decay paths: β+decay, isomeric transition, and alpha decay. No other isomer or isotope of gold has three decay paths.[44] Modern applicationsThe world consumption of new gold produced is about 50% in jewelry, 40% in investments, and 10% in industry.[9] JewelryMain article: Jewelry Moche gold necklace depicting feline heads. Larco Museum Collection. Lima-PeruBecause of the softness of pure (24k) gold, it is usually alloyed with base metals for use in jewelry, altering its hardness and ductility, melting point, color and other properties. Alloys with lower karat rating, typically 22k, 18k, 14k or 10k, contain higher percentages of copper or other base metals or silver or palladium in the alloy.[33] Nickel is toxic, and its release from nickel white gold is controlled by legislation in Europe.[33] Palladium-gold alloys are more expensive than those using nickel. High-karat white gold alloys are more resistant to corrosion than are either pure silver or sterling silver. The Japanese craft of Mokume-gane exploits the color contrasts between laminated colored gold alloys to produce decorative wood-grain effects. By 2014 the gold jewelry industry was escalating despite a dip in gold prices. Demand in the first quarter of 2014 pushed turnover to $23.7 billion according to a World Gold Council report. Investment Gold prices (US$ per troy ounce), in nominal US$ and inflation adjusted US$. Main article: Gold as an investmentThe ISO 4217 currency code of gold is XAU.[45] Many holders of gold store it in form of bullion coins or bars as a hedge against inflation or other economic disruptions. Modern bullion coins for investment or collector purposes do not require good mechanical wear properties; they are typically fine gold at 24k, although the American Gold Eagle and the British gold sovereign continue to be minted in 22k (0.92) metal in historical tradition, and the South African Krugerrand, first released in 1967, is also 22k (0.92).[46] The special issue Canadian Gold Maple Leaf coin contains the highest purity gold of any bullion coin, at 99.999% or 0.99999, while the popular issue Canadian Gold Maple Leaf coin has a purity of 99.99%. In 2006, the United States Mint began producing the American Buffalo gold bullion coin with a purity of 99.99%. The Australian Gold Kangaroos were first coined in 1986 as the Australian Gold Nugget but changed the reverse design in 1989. Other modern coins include the Austrian Vienna Philharmonic bullion coin and the Chinese Gold Panda. Electronics connectorsOnly 10% of the world consumption of new gold produced goes to industry,[9] but by far the most important industrial use for new gold is in fabrication of corrosion-free electrical connectors in computers and other electrical devices. For example, according to the World Gold council, a typical cell phone may contain 50 mg of gold, worth about 50 cents. But since nearly one billion cell phones are produced each year, a gold value of 50 cents in each phone adds to $500 million in gold from just this application.[47] Though gold is attacked by free chlorine, its good conductivity and general resistance to oxidation and corrosion in other environments (including resistance to non-chlorinated acids) has led to its widespread industrial use in the electronic era as a thin-layer coating on electrical connectors, thereby ensuring good connection. For example, gold is used in the connectors of the more expensive electronics cables, such as audio, video and USB cables. The benefit of using gold over other connector metals such as tin in these applications has been debated; gold connectors are often criticized by audio-visual experts as unnecessary for most consumers and seen as simply a marketing ploy. However, the use of gold in other applications in electronic sliding contacts in highly humid or corrosive atmospheres, and in use for contacts with a very high failure cost (certain computers, communications equipment, spacecraft, jet aircraft engines) remains very common.[48] Besides sliding electrical contacts, gold is also used in electrical contacts because of its resistance to corrosion, electrical conductivity, ductility and lack of toxicity.[49] Switch contacts are generally subjected to more intense corrosion stress than are sliding contacts. Fine gold wires are used to connect semiconductor devices to their packages through a process known as wire bonding. The concentration of free electrons in gold metal is 5.90×1022 cm−3. Gold is highly conductive to electricity, and has been used for electrical wiring in some high-energy applications (only silver and copper are more conductive per volume, but gold has the advantage of corrosion resistance). For example, gold electrical wires were used during some of the Manhattan Project's atomic experiments, but large high-current silver wires were used in the calutron isotope separator magnets in the project. It's estimated that 16% of the world's gold and 22% of the world's silver is contained in electronic technology in Japan.[50] Non-electronic industry Mirror for the future James Webb Space Telescope coated in gold to reflect infrared light The world's largest gold bar has a mass of 250 kilograms (550 lb). Toi museum, Japan. A gold nugget of 5 millimetres (0.20 in) in diameter (bottom) can be expanded through hammering into a gold foil of about 0.5 square metres (5.4 sq ft). Toi museum, Japan.
Gold chloride (chloroauric acid) solutions are used to make colloidal gold by reduction with citrate or ascorbate ions. Gold chloride and gold oxide are used to make cranberry or red-colored glass, which, like colloidal gold suspensions, contains evenly sized spherical gold nanoparticles.[54] MedicineMetallic and gold compounds have long been used for medicinal purposes. Gold (usually as the metal) is perhaps the most anciently administered medicine (apparently by shamanic practitioners)[55] and known to Dioscorides.[56][57] In medieval times, gold was often seen as beneficial for the health, in the belief that something so rare and beautiful could not be anything but healthy. Even some modern esotericists and forms of alternative medicine assign metallic gold a healing power. In the 19th century gold had a reputation as a "nervine," a therapy for nervous disorders. Depression, epilepsy, migraine, and glandular problems such as amenorrhea and impotence were treated, and most notably alcoholism (Keeley, 1897).[58] The apparent paradox of the actual toxicology of the substance suggests the possibility of serious gaps in the understanding of the action of gold in physiology.[59] Only salts and radioisotopes of gold are of pharmacological value, since elemental (metallic) gold is inert to all chemicals it encounters inside the body (i.e., ingested gold cannot be attacked by stomach acid). Some gold salts do have anti-inflammatory properties and at present two are still used as pharmaceuticals in the treatment of arthritis and other similar conditions in the US (sodium aurothiomalate and auranofin). These drugs have been explored as a means to help to reduce the pain and swelling of rheumatoid arthritis, and also (historically) against tuberculosis and some parasites.[60] Gold alloys are used in restorative dentistry, especially in tooth restorations, such as crowns and permanent bridges. The gold alloys' slight malleability facilitates the creation of a superior molar mating surface with other teeth and produces results that are generally more satisfactory than those produced by the creation of porcelain crowns. The use of gold crowns in more prominent teeth such as incisors is favored in some cultures and discouraged in others. Colloidal gold preparations (suspensions of gold nanoparticles) in water are intensely red-colored, and can be made with tightly controlled particle sizes up to a few tens of nanometers across by reduction of gold chloride with citrate or ascorbate ions. Colloidal gold is used in research applications in medicine, biology and materials science. The technique of immunogold labeling exploits the ability of the gold particles to adsorb protein molecules onto their surfaces. Colloidal gold particles coated with specific antibodies can be used as probes for the presence and position of antigens on the surfaces of cells.[61] In ultrathin sections of tissues viewed by electron microscopy, the immunogold labels appear as extremely dense round spots at the position of the antigen.[62] Gold, or alloys of gold and palladium, are applied as conductive coating to biological specimens and other non-conducting materials such as plastics and glass to be viewed in a scanning electron microscope. The coating, which is usually applied by sputtering with an argon plasma, has a triple role in this application. Gold's very high electrical conductivity drains electrical charge to earth, and its very high density provides stopping power for electrons in the electron beam, helping to limit the depth to which the electron beam penetrates the specimen. This improves definition of the position and topography of the specimen surface and increases the spatial resolution of the image. Gold also produces a high output of secondary electrons when irradiated by an electron beam, and these low-energy electrons are the most commonly used signal source used in the scanning electron microscope.[63] The isotope gold-198 (half-life 2.7 days) is used, in nuclear medicine, in some cancer treatments and for treating other diseases.[64][65] Food and drink
Gold is commonly formed into bars for use in monetary exchange. Two golden 20 kr coins from the Scandinavian Monetary Union, which was based on a gold standard. The coin to the left is Swedish and the right one is Danish.Gold has been widely used throughout the world as money, for efficient indirect exchange (versus barter), and to store wealth in hoards. For exchange purposes, mints produce standardized gold bullion coins, bars and other units of fixed weight and purity. The first known coins containing gold were struck in Lydia, Asia Minor, around 600 BC.[73] The talent coin of gold in use during the periods of Grecian history both before and during the time of the life of Homer weighed between 8.42 and 8.75 grams.[74] From an earlier preference in using silver, European economies re-established the minting of gold as coinage during the thirteenth and fourteenth centuries.[75] Bills (that mature into gold coin) and gold certificates (convertible into gold coin at the issuing bank) added to the circulating stock of gold standard money in most 19th century industrial economies. In preparation for World War I the warring nations moved to fractional gold standards, inflating their currencies to finance the war effort. Post-war, the victorious countries, most notably Britain, gradually restored gold-convertibility, but international flows of gold via bills of exchange remained embargoed; international shipments were made exclusively for bilateral trades or to pay war reparations. After World War II gold was replaced by a system of nominally convertible currencies related by fixed exchange rates following the Bretton Woods system. Gold standards and the direct convertibility of currencies to gold have been abandoned by world governments, led in 1971 by the United States' refusal to redeem its dollars in gold. Fiat currency now fills most monetary roles. Switzerland was the last country to tie its currency to gold; it backed 40% of its value until the Swiss joined the International Monetary Fund in 1999.[76] Central banks continue to keep a portion of their liquid reserves as gold in some form, and metals exchanges such as the London Bullion Market Association still clear transactions denominated in gold, including future delivery contracts. Today, gold mining output is declining.[77] With the sharp growth of economies in the 20th century, and increasing foreign exchange, the world's gold reserves and their trading market have become a small fraction of all markets and fixed exchange rates of currencies to gold have been replaced by floating prices for gold and gold future contract. Though the gold stock grows by only 1 or 2% per year, very little metal is irretrievably consumed. Inventory above ground would satisfy many decades of industrial and even artisan uses at current prices. The gold content of alloys is measured in carats (k). Pure gold is designated as 24k. English gold coins intended for circulation from 1526 into the 1930s were typically a standard 22k alloy called crown gold,[78] for hardness (American gold coins for circulation after 1837 contained the slightly lower amount of 0.900 fine gold, or 21.6 kt).[79] Although the prices of some platinum group metals can be much higher, gold has long been considered the most desirable of precious metals, and its value has been used as the standard for many currencies. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties. Gold as a sign of wealth and prestige was ridiculed by Thomas More in his treatise Utopia. On that imaginary island, gold is so abundant that it is used to make chains for slaves, tableware, and lavatory seats. When ambassadors from other countries arrive, dressed in ostentatious gold jewels and badges, the Utopians mistake them for menial servants, paying homage instead to the most modestly dressed of their party. Cultural history The Turin Papyrus Map Funerary mask of Tutankhamun Jason returns with the golden fleece on an Apulian red-figure calyx krater, ca. 340–330 BC. Ancient golden Kritonios Crown, funerary or marriage material, 370–360 BC. From a grave in Armento, CampaniaGold artifacts found at the Nahal Kana cave cemetery dated during the 1980s, showed these to be from within the Chalcolithic, and considered the earliest find from the Levant (Gopher et al. 1990).[80] Gold artifacts in the Balkans also appear from the 4th millennium BC, such as those found in the Varna Necropolis near Lake Varna in Bulgaria, thought by one source (La Niece 2009) to be the earliest "well-dated" find of gold artifacts.[81] Gold artifacts such as the golden hats and the Nebra disk appeared in Central Europe from the 2nd millennium BC Bronze Age. The oldest known map of a gold mine was drawn in the 19th Dynasty of Ancient Egypt (1320–1200 BCE), whereas the first written reference to gold was recorded in the 12th Dynasty around 1900 BCE.[82] Egyptian hieroglyphs from as early as 2600 BC describe gold, which King Tushratta of the Mitanni claimed was "more plentiful than dirt" in Egypt.[83] Egypt and especially Nubia had the resources to make them major gold-producing areas for much of history. One of the earliest known maps, known as the Turin Papyrus Map, shows the plan of a gold mine in Nubia together with indications of the local geology. The primitive working methods are described by both Strabo and Diodorus Siculus, and included fire-setting. Large mines were also present across the Red Sea in what is now Saudi Arabia. The legend of the golden fleece may refer to the use of fleeces to trap gold dust from placer deposits in the ancient world. Gold is mentioned frequently in the Old Testament, starting with Genesis 2:11 (at Havilah), the story of The Golden Calf and many parts of the temple including the Menorah and the golden altar. In the New Testament, it is included with the gifts of the magi in the first chapters of Matthew. The Book of Revelation 21:21 describes the city of New Jerusalem as having streets "made of pure gold, clear as crystal". Exploitation of gold in the south-east corner of the Black Sea is said to date from the time of Midas, and this gold was important in the establishment of what is probably the world's earliest coinage in Lydia around 610 BC.[73] From the 6th or 5th century BC, the Chu (state) circulated the Ying Yuan, one kind of square gold coin. In Roman metallurgy, new methods for extracting gold on a large scale were developed by introducing hydraulic mining methods, especially in Hispania from 25 BC onwards and in Dacia from 106 AD onwards. One of their largest mines was at Las Medulas in León (Spain), where seven long aqueducts enabled them to sluice most of a large alluvial deposit. The mines at Roşia Montană in Transylvania were also very large, and until very recently, still mined by opencast methods. They also exploited smaller deposits in Britain, such as placer and hard-rock deposits at Dolaucothi. The various methods they used are well described by Pliny the Elder in his encyclopediaNaturalis Historia written towards the end of the first century AD. During Mansa Musa's (ruler of the Mali Empire from 1312 to 1337) hajj to Mecca in 1324, he passed through Cairo in July 1324, and was reportedly accompanied by a camel train that included thousands of people and nearly a hundred camels where he gave away so much gold that it depressed the price in Egypt for over a decade, causing high inflation.[84] A contemporary Arab historian remarked: Gold was at a high price in Egypt until they came in that year. The mithqal did not go below 25 dirhams and was generally above, but from that time its value fell and it cheapened in price and has remained cheap till now. The mithqal does not exceed 22 dirhams or less. This has been the state of affairs for about twelve years until this day by reason of the large amount of gold which they brought into Egypt and spent there [...]. — Chihab Al-Umari, Kingdom of Mali[85]The European exploration of the Americas was fueled in no small part by reports of the gold ornaments displayed in great profusion by Native American peoples, especially in Mesoamerica, Peru, Ecuador and Colombia. The Aztecs regarded gold as the product of the gods, calling it literally "god excrement" (teocuitlatl in Nahuatl), and after Moctezuma II was killed, most of this gold was shipped to Spain.[86]However, for the indigenous peoples of North America gold was considered useless and they saw much greater value in other minerals which were directly related to their utility, such as obsidian, flint, and slate.[87] Rumors of cities filled with gold fueled legends of El Dorado. Gold played a role in western culture, as a cause for desire and of corruption, as told in children's fables such as Rumpelstiltskin, where the peasant's daughter turns hay into gold, in return for giving up her child when she becomes a princess; and the stealing of the hen that lays golden eggs in Jack and the Beanstalk. The top prize at the Olympic games is the gold medal. 75% of the presently accounted for gold has been extracted since 1910. It has been estimated that the currently known amount of gold internationally would form a single cube 20 m (66 ft) on a side (equivalent to 8,000 m3).[88] One main goal of the alchemists was to produce gold from other substances, such as lead — presumably by the interaction with a mythical substance called the philosopher's stone. Although they never succeeded in this attempt, the alchemists did promote an interest in systematically finding out what can be done with substances, and this laid the foundation for today's chemistry. Their symbol for gold was the circle with a point at its center (☉), which was also the astrological symbol and the ancient Chinese character for the Sun. Golden treasures have been rumored to be found at various locations, following tragedies such as the Jewish temple treasures in the Vatican, following the temple's destruction in 70 AD, a gold stash on the Titanic, the Nazi gold train – following World War II. The Dome of the Rock on the Jerusalem temple site is covered with an ultra-thin golden glasure.[clarification needed] The Sikh Golden temple, the Harmandir Sahib, is a building covered with gold. Similarly the Wat Phra Kaew emerald Buddhist temple (wat) in Thailand has ornamental gold-leafed statues and roofs. Some European king and queen's crowns were made of gold, and gold was used for the bridal crown since antiquity. An ancient Talmudic text circa 100 AD describes Rachel, wife of Rabbi Akiva, receiving a "Jerusalem of Gold" (diadem). A Greek burial crown made of gold was found in a grave circa 370 BC. Occurrence This 156-troy-ounce (4.9 kg) nugget, known as the Mojave Nugget, was found by an individual prospector in the Southern California Desert using a metal detector.Gold's atomic number of 79 makes it one of the higher atomic number elements that occur naturally. Traditionally, gold is thought to have formed by the R-process in supernova nucleosynthesis,[89] but a relatively recent paper suggests that gold and other elements heavier than iron may also be produced in quantity by the collision of neutron stars.[90] In both cases, satellite spectrometers only indirectly detect the resulting gold: "we have no spectroscopic evidence that [such] elements have truly been produced."[91] These gold nucleogenesis theories hold that the resulting explosions scattered metal-containing dusts (including heavy elements such as gold) into the region of space in which they later condensed into our solar system and the Earth.[92] Because the Earth was molten when it was just formed, almost all of the gold present on Earth sank into the core. Most of the gold that is present today in the Earth's crust and mantle is thought to have been delivered to Earth later, by asteroid impacts during the Late Heavy Bombardment.[6][7] Schematic of a NE (left) to SW (right) cross-section through the 2.020 billion year old Vredefort impact crater in South Africa and how it distorted the contemporary geological structures. The present erosion level is shown. Johannesburg is located where the Witwatersrand Basin (the yellow layer) is exposed at the "present surface" line, just inside the crater rim, on the left. Not to scale.The asteroid that formed Vredefort crater 2.020 billion years ago is often credited with seeding the Witwatersrand basin in South Africa with the richest gold deposits on earth.[93][94][95][96] However, the gold-bearing Witwatersrand rocks were laid down between 700 and 950 million years before the Vredefort impact.[97][98] These gold-bearing rocks had furthermore been covered by a thick layer of Ventersdorp lavas and the Transvaal Supergroup of rocks before the meteor struck. What the Vredefort impact achieved, however, was to distort the Witwatersrand basin in such a way that the gold-bearing rocks were brought to the present erosion surface in Johannesburg, on the Witwatersrand, just inside the rim of the original 300 km diameter crater caused by the meteor strike. The discovery of the deposit in 1886 launched the Witwatersrand Gold Rush. Some 22% of all the gold that is ascertained to exist today on Earth has been extracted from these Witwatersrand rocks.[98] On Earth, gold is found in ores in rock formed from the Precambrian time onward.[81] It most often occurs as a native metal, typically in a metal solid solution with silver (i.e. as a gold silver alloy). Such alloys usually have a silver content of 8–10%. Electrum is elemental gold with more than 20% silver. Electrum's color runs from golden-silvery to silvery, dependent upon the silver content. The more silver, the lower the specific gravity. Native gold occurs as very small to microscopic particles embedded in rock, often together with quartz or sulfide minerals such as "Fool's Gold", which is a pyrite.[99] These are called lode deposits. The metal in a native state is also found in the form of free flakes, grains or larger nuggets[81] that have been eroded from rocks and end up in alluvial deposits called placer deposits. Such free gold is always richer at the surface of gold-bearing veins[clarification needed] owing to the oxidation of accompanying minerals followed by weathering, and washing of the dust into streams and rivers, where it collects and can be welded by water action to form nuggets. Relative sizes of an 860 kg block of gold ore, and the 30 g of gold that can be extracted from it. Toi gold mine, Japan. Gold left behind after a pyrite cube was oxidized to hematite. Note cubic shape of cavity.Gold sometimes occurs combined with tellurium as the minerals calaverite, krennerite, nagyagite, petzite and sylvanite (see telluride minerals), and as the rare bismuthide maldonite (Au2Bi) and antimonide aurostibite (AuSb2). Gold also occurs in rare alloys with copper, lead, and mercury: the minerals auricupride (Cu3Au), novodneprite (AuPb3) and weishanite ((Au, Ag)3Hg2). Recent research suggests that microbes can sometimes play an important role in forming gold deposits, transporting and precipitating gold to form grains and nuggets that collect in alluvial deposits.[100] Another recent study has claimed water in faults vaporizes during an earthquake, depositing gold. When an earthquake strikes, it moves along a fault. Water often lubricates faults, filling in fractures and jogs. About 6 miles (10 kilometers) below the surface, under incredible temperatures and pressures, the water carries high concentrations of carbon dioxide, silica, and gold. During an earthquake, the fault jog suddenly opens wider. The water inside the void instantly vaporizes, flashing to steam and forcing silica, which forms the mineral quartz, and gold out of the fluids and onto nearby surfaces.[101] SeawaterThe world's oceans contain gold. Measured concentrations of gold in the Atlantic and Northeast Pacific are 50–150 femtomol/L or 10–30 parts per quadrillion (about 10–30 g/km3). In general, gold concentrations for south Atlantic and central Pacific samples are the same (~50 femtomol/L) but less certain. Mediterranean deep waters contain slightly higher concentrations of gold (100–150 femtomol/L) attributed to wind-blown dust and/or rivers. At 10 parts per quadrillion the Earth's oceans would hold 15,000 tonnes of gold.[102] These figures are three orders of magnitude less than reported in the literature prior to 1988, indicating contamination problems with the earlier data. A number of people have claimed to be able to economically recover gold from sea water, but so far they have all been either mistaken or acted in an intentional deception. Prescott Jernegan ran a gold-from-seawater swindle in the United States in the 1890s. A British fraudster ran the same scam in England in the early 1900s.[103] Fritz Haber (the German inventor of the Haber process) did research on the extraction of gold from sea water in an effort to help pay Germany's reparations following World War I.[104] Based on the published values of 2 to 64 ppb of gold in seawater a commercially successful extraction seemed possible. After analysis of 4,000 water samples yielding an average of 0.004 ppb it became clear that the extraction would not be possible and he stopped the project.[105] No commercially viable mechanism for performing gold extraction from sea water has yet been identified. Gold synthesis is not economically viable and is unlikely to become so in the foreseeable future. ProductionMain article: List of countries by gold production Gold exports by country (2014).[106] The entrance to an underground gold mine in Victoria, Australia Pure gold precipitate produced by the aqua regia refining process Time trend of gold productionThe World Gold Council states that as of the end of 2014, "there were 183,600 tonnes of stocks in existence above ground". This can be represented by a cube with an edge length of about 21 meters.[107] At $1,075 per troy ounce, 183,600 metric tonnes of gold would have a value of $6.3 trillion. As of 2014, the world's largest gold producer by far was China with 450 tonnes and it was expected to reach 490 in 2015. The second-largest producer, Australia, mined 274 tonnes in the same year, followed by Russia with 247 tonnes.[10] MiningMain article: Gold miningSince the 1880s, South Africa has been the source for a large proportion of the world's gold supply, with about 50% of the presently accounted for gold having come from South Africa. Production in 1970 accounted for 79% of the world supply, producing about 1,480 tonnes. In 2007 China (with 276 tonnes) overtook South Africa as the world's largest gold producer, the first time since 1905 that South Africa has not been the largest.[108] As of 2014, China was the world's leading gold-mining country, followed in order by Australia, Russia, the United States, Canada, and Peru. South Africa, which had dominated world gold production for most of the 20th century, had declined to sixth place.[10] Other major producers are the Ghana, Burkina Faso, Mali, Indonesia and Uzbekistan. In South America, the controversial project Pascua Lama aims at exploitation of rich fields in the high mountains of Atacama Desert, at the border between Chile and Argentina. Today about one-quarter of the world gold output is estimated to originate from artisanal or small scale mining.[109] The city of Johannesburg located in South Africa was founded as a result of the Witwatersrand Gold Rush which resulted in the discovery of some of the largest natural gold deposits in recorded history. The gold fields are confined to the northern and north-western edges of the Witwatersrand basin, which is a 5–7 km thick layer of archean rocks located, in most places, deep under the Free State, Gauteng and surrounding provinces.[110] These Witwatersrand rocks are exposed at the surface on the Witwatersrand, in and around Johannesburg, but also in isolated patches to the south-east and south-west of Johannesburg, as well as in an arc around the Vredefort Dome which lies close to the center of the Witwatersrand basin.[97][110] From these surface exposures the basin dips extensively, requiring some of the mining to occur at depths of nearly 4000 m, making them, especially the Savuka and TauTona mines to the south-west of Johannesburg, the deepest mines on earth. The gold is found only in six areas where archean rivers from the north and north-west formed extensive pebbly braided river deltas before draining into the "Witwatersrand sea" where the rest of the Witwatersrand sediments were deposited.[110] The Second Boer War of 1899–1901 between the British Empire and the Afrikaner Boers was at least partly over the rights of miners and possession of the gold wealth in South Africa. ProspectingMain article: Gold prospectingDuring the 19th century, gold rushes occurred whenever large gold deposits were discovered. The first documented discovery of gold in the United States was at the Reed Gold Mine near Georgeville, North Carolina in 1803.[111] The first major gold strike in the United States occurred in a small north Georgia town called Dahlonega.[112] Further gold rushes occurred in California, Colorado, the Black Hills, Otago in New Zealand, Australia, Witwatersrand in South Africa, and the Klondike in Canada. A miner underground at Pumsaint gold mine Wales; c. 1938?.BioremediationA sample of the fungus Aspergillus niger was found growing from gold mining solution; and was found to contain cyano metal complexes; such as gold, silver, copper iron and zinc. The fungus also plays a role in the solubilization of heavy metal sulfides.[113] ExtractionMain article: Gold extractionGold extraction is most economical in large, easily mined deposits. Ore grades as little as 0.5 parts per million (ppm) can be economical. Typical ore grades in open-pit mines are 1–5 ppm; ore grades in underground or hard rock mines are usually at least 3 ppm. Because ore grades of 30 ppm are usually needed before gold is visible to the naked eye, in most gold mines the gold is invisible. The average gold mining and extraction costs were about $317 per troy ounce in 2007, but these can vary widely depending on mining type and ore quality; global mine production amounted to 2,471.1 tonnes.[114] RefiningAfter initial production, gold is often subsequently refined industrially by the Wohlwill process which is based on electrolysis or by the Miller process, that is chlorination in the melt. The Wohlwill process results in higher purity, but is more complex and is only applied in small-scale installations.[115][116] Other methods of assaying and purifying smaller amounts of gold include parting and inquartation as well as cupellation, or refining methods based on the dissolution of gold in aqua regia.[117] Synthesis from other elementsThe production of gold from a more common element, such as lead, has long been a subject of human inquiry, and the ancient and medieval discipline of alchemy often focused on it; however, the transmutation of the chemical elements did not become possible until the understanding of nuclear physics in the 20th century. The first synthesis of gold was conducted by Japanese physicist Hantaro Nagaoka, who synthesized gold from mercury in 1924 by neutron bombardment.[118] An American team, working without knowledge of Nagaoka's prior study, conducted the same experiment in 1941, achieving the same result and showing that the isotopes of gold produced by it were all radioactive.[119] Gold can currently be manufactured in a nuclear reactor by irradiation either of platinum or mercury. Only the mercury isotope 196Hg, which occurs with a frequency of 0.15% in natural mercury, can be converted to gold by neutron capture, and following electron capture-decay into 197Au with slow neutrons. Other mercury isotopes are converted when irradiated with slow neutrons into one another, or formed mercury isotopes which beta decay into thallium. Using fast neutrons, the mercury isotope 198Hg, which composes 9.97% of natural mercury, can be converted by splitting off a neutron and becoming 197Hg, which then disintegrates to stable gold. This reaction, however, possesses a smaller activation cross-section and is feasible only with un-moderated reactors. It is also possible to eject several neutrons with very high energy into the other mercury isotopes in order to form 197Hg. However such high-energy neutrons can be produced only by particle accelerators.[clarification needed] ConsumptionThe consumption of gold produced in the world is about 50% in jewelry, 40% in investments, and 10% in industry.[9][120] According to World Gold Council, China is the world's largest single consumer of gold in 2013 and toppled India for the first time with Chinese consumption increasing by 32 percent in a year, while that of India only rose by 13 percent and world consumption rose by 21 percent. Unlike India where gold is used for mainly for jewellery, China uses gold for manufacturing and retail.[121] Gold jewelry consumption by country in tonnes[122][123][124]Country20092010201120122013 India442.37745.70986.3864974 China376.96428.00921.5817.51120.1 United States150.28128.61199.5161190 Turkey75.1674.07143118175.2 Saudi Arabia77.7572.9569.158.572.2 Russia60.1267.5076.781.973.3 United Arab Emirates67.6063.3760.958.177.1 Egypt56.6853.433647.857.3 Indonesia41.0032.755552.368 United Kingdom31.7527.3522.621.123.4 Other Persian Gulf Countries24.1021.972219.924.6 Japan21.8518.50−30.17.621.3 South Korea18.8315.8715.512.117.5 Vietnam15.0814.36100.87792.2 Thailand7.336.28107.480.9140.1 Total1508.701805.60 Other Countries251.6254.0390.4393.5450.7 World Total1760.32059.63487.53163.63863.5PollutionFurther information: Mercury cycle and International Cyanide Management CodeGold production is associated with contribution to hazardous pollution.[125][126] Low-grade gold ore may contain less than one ppm gold metal; such ore is ground and mixed with sodium cyanide dissolve the gold. Cyanide is a highly poisonous chemical, which can kill living creatures when exposed in minute quantities. Many cyanide spills[127] from gold mines have occurred in both developed and developing countries which killed aquatic life in long stretches of affected rivers. Environmentalists consider these events major environmental disasters.[128][129] Thirty tons of used ore is dumped as waste for producing one troy ounce of gold.[130] Gold ore dumps are the source of many heavy elements such as cadmium, lead, zinc, copper, arsenic, selenium and mercury. When sulfide bearing minerals in these ore dumps are exposed to air and water, the sulfide transforms into sulfuric acid which in turn dissolves these heavy metals facilitating their passage into surface water and ground water. This process is called acid mine drainage. These gold ore dumps are long term, highly hazardous wastes second only to nuclear waste dumps.[130] It was once common to use mercury to recover gold from ore, but today the use of mercury is largely limited to small-scale individual miners.[131] Minute quantities of mercury compounds can reach water bodies, causing heavy metal contamination. Mercury can then enter into the human food chain in the form of methylmercury. Mercury poisoning in humans causes incurable brain function damage and severe retardation. Gold extraction is also a highly energy intensive industry, extracting ore from deep mines and grinding the large quantity of ore for further chemical extraction requires nearly 25 kW·h of electricity per gram of gold produced.[132] ToxicityPure metallic (elemental) gold is non-toxic and non-irritating when ingested[133] and is sometimes used as a food decoration in the form of gold leaf. Metallic gold is also a component of the alcoholic drinks Goldschläger, Gold Strike, and Goldwasser. Metallic gold is approved as a food additive in the EU (E175 in the Codex Alimentarius). Although the gold ion is toxic, the acceptance of metallic gold as a food additive is due to its relative chemical inertness, and resistance to being corroded or transformed into soluble salts (gold compounds) by any known chemical process which would be encountered in the human body. Soluble compounds (gold salts) such as gold chloride are toxic to the liver and kidneys. Common cyanide salts of gold such as potassium gold cyanide, used in gold electroplating, are toxic by virtue of both their cyanide and gold content. There are rare cases of lethal gold poisoning from potassium gold cyanide.[134][135] Gold toxicity can be ameliorated with chelation therapy with an agent such as dimercaprol. Gold metal was voted Allergen of the Year in 2001 by the American Contact Dermatitis Society. Gold contact allergies affect mostly women.[136] Despite this, gold is a relatively non-potent contact allergen, in comparison with metals like nickel.[137] PriceFurther information: Gold as an investment Gold price history in 1960–2011As at December 2015, gold is valued at around $39 per gram ($1,200 per troy ounce). Like other precious metals, gold is measured by troy weight and by grams. When it is alloyed with other metals the term carat or karat is used to indicate the purity of gold present, with 24 carats being pure gold and lower ratings proportionally less. The purity of a gold bar or coin can also be expressed as a decimal figure ranging from 0 to 1, known as the millesimal fineness, such as 0.995 being very pure. HistoryThe price of gold is determined through trading in the gold and derivatives markets, but a procedure known as the Gold Fixing in London, originating in September 1919, provides a daily benchmark price to the industry. The afternoon fixing was introduced in 1968 to provide a price when US markets are open.[138] Historically gold coinage was widely used as currency; when paper money was introduced, it typically was a receipt redeemable for gold coin or bullion. In a monetary system known as the gold standard, a certain weight of gold was given the name of a unit of currency. For a long period, the United States government set the value of the US dollar so that one troy ounce was equal to $20.67 ($0.665 per gram), but in 1934 the dollar was devalued to $35.00 per troy ounce ($0.889/g). By 1961, it was becoming hard to maintain this price, and a pool of US and European banks agreed to manipulate the market to prevent further currency devaluation against increased gold demand.[139] On 17 March 1968, economic circumstances caused the collapse of the gold pool, and a two-tiered pricing scheme was established whereby gold was still used to settle international accounts at the old $35.00 per troy ounce ($1.13/g) but the price of gold on the private market was allowed to fluctuate; this two-tiered pricing system was abandoned in 1975 when the price of gold was left to find its free-market level.[citation needed] Central banks still hold historical gold reserves as a store of value although the level has generally been declining.[citation needed] The largest gold depository in the world is that of the U.S. Federal Reserve Bank in New York, which holds about 3%[140] of the gold known to exist and accounted for today, as does the similarly laden U.S. Bullion Depository at Fort Knox. In 2005 the World Gold Council estimated total global gold supply to be 3,859 tonnes and demand to be 3,754 tonnes, giving a surplus of 105 tonnes.[141] Sometime around 1970[vague] the price began in trend to greatly increase,[142] and between 1968 and 2000 the price of gold ranged widely, from a high of $850 per troy ounce ($27.33/g) on 21 January 1980, to a low of $252.90 per troy ounce ($8.13/g) on 21 June 1999 (London Gold Fixing).[143] Prices increased rapidly from 2001, but the 1980 high was not exceeded until 3 January 2008 when a new maximum of $865.35 per troy ounce was set.[144] Another record price was set on 17 March 2008 at $1023.50 per troy ounce ($32.91/g).[144] In late 2009, gold markets experienced renewed momentum upwards due to increased demand and a weakening US dollar.[citation needed] On 2 December 2009, Gold reached a new high closing at $1,217.23.[145] Gold further rallied hitting new highs in May 2010 after the European Union debt crisis prompted further purchase of gold as a safe asset.[146][147] On 1 March 2011, gold hit a new all-time high of $1432.57, based on investor concerns regarding ongoing unrest in North Africa as well as in the Middle East.[148] From April 2001 to August 2011, spot gold prices more than quintupled in value against the US dollar, hitting a new all-time high of $1,913.50 on 23 August 2011,[149] prompting speculation that the long secular bear market had ended and a bull market had returned.[150] However, the price then began a slow decline towards $1200 per troy ounce in late 2014 and 2015. SymbolismThis article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (February 2014) (Learn how and when to remove this template message) Gold bars at the Emperor Casino in MacauGreat human achievements are frequently rewarded with gold, in the form of gold medals, golden trophies and other decorations. Winners of athletic events and other graded competitions are usually awarded a gold medal. Many awards such as the Nobel Prize are made from gold as well. Other award statues and prizes are depicted in gold or are gold plated (such as the Academy Awards, the Golden Globe Awards, the Emmy Awards, the Palme d'Or, and the British Academy Film Awards). Aristotle in his ethics used gold symbolism when referring to what is now commonly known as the golden mean. Similarly, gold is associated with perfect or divine principles, such as in the case of the golden ratio and the golden rule. Gold is further associated with the wisdom of aging and fruition. The fiftieth wedding anniversary is golden. Our most valued or most successful latter years are sometimes considered "golden years". The height of a civilization is referred to as a "golden age". In some forms of Christianity and Judaism, gold has been associated both with holiness and evil. In the Book of Exodus, the Golden Calf is a symbol of idolatry, while in the Book of Genesis, Abraham was said to be rich in gold and silver, and Moses was instructed to cover the Mercy Seat of the Ark of the Covenant with pure gold. In Byzantine iconography the halos of Christ, Mary and the Christian saints are often golden. According to Christopher Columbus, those who had something of gold were in possession of something of great value on Earth and a substance to even help souls to paradise.[151] Wedding rings have long been made of gold. It is long lasting and unaffected by the passage of time and may aid in the ring symbolism of eternal vows before God and the perfection the marriage signifies. In Orthodox Christian wedding ceremonies, the wedded couple is adorned with a golden crown (though some opt for wreaths, instead) during the ceremony, an amalgamation of symbolic rites. In popular culture gold has many connotations but is most generally connected to terms such as good or great, such as in the phrases: "has a heart of gold", "that's golden!", "golden moment", "then you're golden!" and "golden boy". It remains a cultural symbol of wealth and through that, in many societies, success. "Monatomic gold" & pseudoscienceORMUS, also called ORMEs (Orbitally Rearranged Monoatomic Elements) is a fictitious group of substances exhibiting properties outside the bounds of modern physics and purported to have healing powers when ingested. The gold variant of this is referred to as monatomic gold.[152][153][154] A 2015 article in Science-Based Medicine examined the research and concluded it was pure pseudoscience: “ORMUS is a tribute to the unlimited inventiveness of the human imagination and the human capacity for self-deception, and it is great as humorous entertainment, but there is no reason to think it has anything to do with reality or science. If the claims were true, it would be Nobel Prize-worthy. Science doesn’t recognize ORMUS, and it won’t unless the proponents can come up with credible evidence.[154]”See also
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Why did some Banks find themselves in Financial Trouble?For many years leading up to 2007, interest rates were very low in Western countries and money was cheap. Banks needed to lend as much as they could if they were going to make the level of profits that they were used to. So some banks, especially in the USA, lent to poorer people, who had less chance of paying back their loans than the banks' traditional customers. To manage the risk, banks invented new and complex ways to lend.
They also invented new ways to package up these debts. This involved turning loans that could not be traded, into a type of security that could be traded. This allowed these debts to be spread out to other banks, so they did not feel so exposed to the risk. Eventually no one really knew who was lending what to whom. The lending looked safe because it was in the form of mortgages on people's homes. People were buying lots of goods, Western economies were growing, inflation was low and there were cheap goods to purchase from China and other emerging economies. People's jobs seemed safe and the price of property kept rising. So people kept borrowing more and more against their houses, and spending more. But there was a catch. As the emerging economies became richer they spent more in world resources such as oil, metals and meat. So, costs and prices began to creep up, and inflation began to rise in some Western countries. The poorest people who had taken out loans (known as sub prime loans) against their homes, found it hard to pay them back. If they defaulted, their houses were taken from them and sold. With more houses for sale, the prices stopped rising and began to drop. Suddenly banks realised that many of the loans they had made might not be paid back. However, because of the complex nature of modern lending, they had no idea how many of these loans they had. They also had no idea which other banks had a lot of bad debt (which became known as toxic assets). So they became very cautious about lending to one another in the interbank market. Immediately some banks found themselves in deep trouble, because they depended upon the lending between banks to keep solvent from day to day. One of these banks was the mighty American bank, Lehman Brothers. A shock wave rushed around the world: if Lehman could go under, any bank could. Banks stopped lending to one another completely - and this sent other banks into a tailspin.A full-scale banking crisis was only averted when the British and American governments stepped in. In Britain, three major banks - Northern Rock, RBS and Lloyds-TSB had to be rescued. Although a catastrophic meltdown in the money markets was avoided, banks stayed cautious about lending. They still did not know how many of their loans were unlikely to be repaid. |
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