Jewelry consistently accounts for the largest share of the final demand for gold at around 75% of total demand - worth around US$ 40 billion at the annual average gold price in 2005, around US$80 billion at retail prices. Women around the world have very strong affinity with gold.
There are both differences and similarities in jewelry purchasing habits across countries. Demand is affected by different cultural and social factors but market research also shows that feelings towards gold are very similar and that there are common core attitudes towards gold across different markets.
For instance, the purchase of gold jewelry is associated with special occasions such as Valentine's Day, weddings, anniversaries and birthdays throughout the world. Market research responses show that there are consumer "segments" which exist in all countries although the importance of each segment can vary from country to country.
Gold is a chemical element with the symbol Au (from the Latin aurum) and atomic number 79. It is a highly sought-after precious metal which, for many centuries, has been used as money, a store of value and in jewelry. The metal occurs as nuggets or grains in rocks, underground "veins" and in alluvial deposits. It is one of the coinage metals. It is a dense, soft, shiny, yellow metal, and is the most malleable and ductile of the known metals.
Gold forms the basis for a monetary standard used by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS). Its ISO currency code is XAU. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.
Chemically, gold is a trivalent and univalent transition metal. Gold does not react with most chemicals, but is attacked by chlorine, fluorine, aqua regia and cyanide. Gold dissolves in mercury, forming amalgam alloys. In particular, gold is insoluble in nitric acid, which will dissolve most other metals. Nitric acid has long been used to confirm the presence of gold in items, and this is the origin of the colloquial term "acid test," referring to a gold standard test for genuine value.
Gold is a metallic element with a characteristic yellow color, but can also be black or ruby when finely divided, while colloidal solutions are intensely colored and often purple. These colors are the result of gold's plasmon frequency lying in the visible range, which causes red and green light to be reflected, and blue light to be absorbed. Only silver colloids exhibit the same interactions with light, albeit at a shorter frequency, making silver colloids yellow in color.
Gold is the most malleable and ductile metal; a single gram can be beaten into a sheet of one square meter, or an ounce into 300 square feet. Gold readily forms alloys with many other metals. These alloys can be produced to increase the hardness or to create exotic colors. Adding copper yields a redder metal, iron blue, aluminum purple, platinum white, and natural bismuth and silver alloys produce black. Native gold contains usually eight to ten percent silver, but often much more — alloys with a silver content over 20% are called electrum. As the amount of silver increases, the color becomes whiter and the specific gravity becomes lower.
Gold is a good conductor of heat and electricity, and is not affected by air and most reagents. Heat, moisture, oxygen, and most corrosive agents have very little chemical effect on gold, making it well-suited for use in coins and jewelry; conversely, halogens will chemically alter gold, and aqua regia dissolves it by virtue of the elemental chlorine generated by this acid mixture.
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 out as gold 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.
Recent research undertaken by Sir Frank Reith of the Australian National University shows that microbes play an important role in forming gold deposits, transporting and precipitating gold to form grains and nuggets that collect in alluvial deposits.
High quality pure metallic gold is tasteless, in keeping with its resistance to corrosion (it is metal ions which confer taste to metals).
In addition, gold is extremely heavy, with a cubic foot thereof weighing in at upwards of 1200 pounds (around 19300kgm)
Gold as the metal
Medium of monetary exchange. Pure gold is too soft for ordinary use and is typically hardened by alloying with silver, copper, or other metals. In various countries, gold, and its many alloys, are most often used in jewelry, coinage and as a standard for monetary exchange. When sold in the form of jewelry, gold is measured in carats (k), with pure gold being designated as 24k. It is, however, more commonly sold in lower measurements of 22k, 18k, 14k and 10k. A lower "k" indicates that a higher percent of copper or silver in the alloy, with copper being the more commonly used metal. Fourteen carat gold-copper alloy is nearly identical in color to certain bronze alloys, and both may be used to produce police and other badges. Eighteen carat gold, with a high copper content, is found in some antique jewelry and has a distinct, though not dominant, copper cast, creating an attractively warm color. A similar carat weight, when alloyed with silvery metals, appears less warm in color. Some low carat white metal alloys are sold as "white gold" and are silver in appearance, but have a slightly more yellow cast. They are far more resistant to corrosion than are either pure silver or sterling silver.
Carat weights of twenty and higher are more common in modern jewelry. Gold coins intended for circulation prior to the 1930s were typically 22k, for hardness. Modern collector/investment bullion coins (which do not require good mechanical wear properties) are typically 24k, although the American Gold Eagle continues to be made at 22k. Currently, the Canadian Gold Maple Leaf coin contains the highest purity gold of any popular bullion coin, at 99.99% (.9999 fine).



