Where is gold found?

Gold is well-known mineral that touches all of our lives, but most of us at some point wonder where gold is found. After all, it doesn’t just appear in ring form wrapped around your finger or in bullion form locked in a vault somewhere. Gold has to be located and mined before it can be processed and turned into such prized possessions.

The top source of gold in the world over the last 120 years has been The Witwatersrand basin in South Africa. Also known as “The Rand”, it has been the source of 40% of the gold found during this time period. A large portion of the world’s unmined gold is thought to remain there, with some scientists suggesting the portion is up to one third.

After South Africa, the second biggest gold producing country is the United States. In particular Nevada, but also other states like Alaska, California, and Colorado have a gold mining output.

After the United States, the third biggest gold producing country is Australia. Gold was first discovered there near Ophir, New South Wales, and today is primarily mined in the Goldfields-Esperance and Pilbara regions of Western Australia, and at Bendigo, Victoria. The largest open-air mine in Australia is the Super-Pit gold mine in Kalgoorie, a town in the Goldfields-Esperance region, and extends 8 square kilometers. It is an overwhelming sight to behold.

The above three countries have been the biggest gold producing nations over the last century. But if we measure only the current year’s production, China has become the world’s largest producer of gold, overtaking South Africa’s top position in 2007. Other countries such as the United States, Canada, and Australia actually have more extensive gold reserves than China. However, the low cost of labor and production in China, as well as recent capital expansion and increase in foreign investment, have propelled China’s production rate ahead of the other more naturally abundant countries.

How To Tell Fools Gold From Real Gold

What is Fools Gold made of? Pyrites or Iron Pyrites. It is a mineral that has historically been confused with gold because of its similar color and shape. But despite the similarities in appearance to real gold, it can be easily distinguised from it if you know what to look for.

First of all, the streak of the two minerals is different. "Streak" refers to the color of a mineral's powder. The color of a mineral's powder can be tested by rubbing the mineral on a surface of hard white porcelain. The color of the residual streak indicates the contents of the minerals. Real gold has a yellow streak, while Fool's Gold has a black streak.

In addition to the color of the minerals' streaks, fool's gold and real gold also differ in hardness. Gold has a low hardness of 2 1/2 to 3 on Moh's relative hardness scale (roughly the same as a finger nail), while fool's gold has a hardness of 6 to 6 1/2 (a typical knife blade measures at approximatel 5.5). A relative hardness of zero signifies a liquid, while a relative hardness of 10 is equivalent to a diamond.



A mineral's relative hardness can be tested by scratching. A mineral can only be scratched by a harder mineral, not by a softer one. Therefore, to test the mystery mineral specimen you can use a different mineral with a relative hardness between that of fool's gold and that of real gold. For instance, a copper penny with a relative hardness of 3.5 will suffice. Use he mystery mineral specimen to attempt to scratch the copper penny. If you can scratch the copper penny, then the mineral can not possibly be real gold because it's softer than copper. The mystery mineral can therefore be assumed to be fool's gold (or another mineral with a relative hardness that is higher than that of copper).

In the days of the Gold Rush pyrites and gold were often confused, resulting in much confusion and disappointment. This sometimes leads to the worry in this day and age that fool's gold and real gold are difficult to distinguish. But fear not, because through the above testing methods, fools gold identification is relatively simple.

"Gold Panda" Chinese Gold Coins

First introduced by the Chinese mint in 1982, Chinese Gold Panda coins are extremely popular amongst collectors. Unlike most other gold coins, whose designs generally remain static for long periods of time, these Chinese gold coins' design is changed every year. Collectors who may have otherwise been content with one coin from any particular series are excited by the changing face of the Gold Panda and often buy a variety of different releases.

The obverse side of the Chinese Gold Panda coin depicts the Temple of Heaven in Beijing and remains the same from year to year. The reverse side changes yearly, with the 2008 edition showing a mother panda together with her cub.

Like most gold bullions coins, Chinese Gold Pandas are available in fractional sizes, specifically 1/2 oz, 1/4 oz, 1/10 oz, and even 1/20 oz. There is, however, a higher premium on fractional sizes, making them less popular than the 1 oz coins. Larger denominations are also sometimes issued, including 5 oz coins and even hefty 12 oz Chinese Gold Panda coins!

The Chinese Mint charges a higher premium on its gold bullion coins than most other mints do, making the Chinese Gold Panda somewhat less enticing for gold investors. However, the premium charged over the gold content's market value is still relatively small, certainly not great enough to deter coin collectors or even all investors.

The Chinese Gold Panda coin is official legal tender yet is guaranteed upon purchase to be uncirculated and in perfect condition. Any Chinese Gold Panda that you buy should therefore be in perfect mint condition with no wear or loss of luster. Although gold bullion is always saleable at the market value of its gold content, serious gold collectors will likely not be interested in buying your Chinese Gold Panda coin at its premium price unless it is in perfect mint condition.

Because of its excellent craftmanship and beautifully detailed design, the Chinese Gold Panda coin makes an exciting addition to any gold collection.

The Canadian Maple Leaf Gold Coin

Produced entirely from Canadian source for gold, coins such as the Canadian Maple Leaf to the left are made of 24 karat gold. Unlike American Eagles or South African Krugerrands which are 91.67% pure gold with the remainder coming from copper or silver to form a more durable alloy, Maple Leaf gold Canadian coins are 99.99% pure. Maple Leaf gold coins are pure gold bullion.

Being 24 karat gold, Maple Leaf gold coins are indeed less durable than American Eagles or South African Krugerrands. Pure gold bullion has rarely been used as a regularly circulated currency because it can be easily worn out, damaged, or bent over time. However, despite being legal tender in Canada, Maple Leaf gold coins are not a regularly circulated currency and are intended mainly for collectors and investors to own and hold onto. You can not walk into a Canadian 7-11 and buy lunch with a Maple Leaf gold bullion coin, despite its legal tender status. So perhaps the lower degree of durability is a non-issue.

Canadian Maple Leaf gold coins have become popular in many markets because of their status as "pure gold". Some people are disappointed or lose interest when they discover that a gold coin is less than 24 karat. Perhaps there is an aesthetic attraction to owning pure gold. And perhaps some people want the option of melting down their gold to increase liquidity in times of emergency. And there are likely people who misunderstand the "impure" status of lower karat gold coins, thinking that they contain less gold than a 24 karat coin of the same denomination. But in reality, a 1 ounce Krugerrand and a 1 ounce Maple Leaf contain the same amount of gold. The additional metals are not counted in the weight, only the gold content is counted. In any case, these beliefs are all reasons for the disproportionate popularity of the gold Canadian Maple Leaf coin.

Another reason for the Maple Leaf's popularity is its attractive design. The simple yet iconic nature of the Canadian maple leaf (which also appears on the Canadian flag) immediately strikes the viewer and arouses images of Canada's majestic natural wonders and abundant natural resources. The reverse side of the coin shows a bust of Queen Elizabeth II, depicting Canada's history as a former British settlement and part of the Commonwealth. The design is similar to the Canadian penny (1 cent coin) which also shows a maple leaf on one side and Queen Elizabth II on the reverse.

The Canadian Maple Leaf Gold Coin is available in the following denominations: 1 Troy Ounce, 1/2 Troy Ounce, 1/4 Troy Ounce, 1/10 Troy Ounce, 1/20 Troy Ounce. There is also a series of Canadian Silver Maple Leaf coins, also 99.99% pure silver bullion.

The Canadian Maple Gold Coin is not only a wise investment, but also makes a beautiful keepsake or a meaningful gift. For those who intend to take good care of their collections and make an effort to keep their coins in good condition, the 24 karat Canadian Maple Leaf gold coin is a fine addition to, or starter of, any collection.

American Eagle Gold Coins

American Eagle Gold Coins are popular gold bullion coins minted in the United States. The gold contained within the coins is legally required to come entirely from US sources. The American eagle was introduced in 1986, during a period when South African gold was banned from import to protest apartheid, and its popularity quickly soared as it met the high demand for gold under the boycott.

American Eagle Coins are available in 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz denominations, and are 22 carat gold (91.67% pure gold). The coin's denomination indicates the coin's gold content, with the additional metals being in addition to the weight of the gold. Unlike South African Kruggerands which contain a copper alloy, American Eagles contain a copper and silver alloy, giving them a lighter, yellower tone that the deep orange of Kruggerands. On one side of the coin is a depiction of Lady Liberty holding her torch. On the other side is an image of a male eagle flying above a female eagle and their offspring. The male eagle symbolizes the United States' great power and resolve to defend itself and its people, but in the male eagle's grasp we also see an olive branch, symbolizing America's quest for peace while maintaining its strength. The design of the various denominations is the same, aside from the listed gold content.




American Eagle gold coins are marked with a face value. 1 oz coins are marked as $50 coins, 1/2 oz coins are marked as $25 coins, 1/4 oz coins are marked as $10 coins, and 1/10 oz coins are marked as $5 coins. But in reality these face values are symbolic values to reflect the coins status as legal tender. Their true value resembles the market value of their gold content, plus a certain premium. Indeed, an American Eagle US gold coin labelled $50 values around $900 at the moment!

American Eagles are some of the most popular gold coins in the world. Their beautiful design and powerful symbolism, as well as their classical gold hue, make American Eagles pleasing gold coins to own and display. And with their full weight and gold content being guaranteed and backed by the US mint, they also make a fine investment. Every serious gold coin collector owns an American Eagle!

South African Krugerands

The South Afrikan Krugerand coin is one of the most popular gold collector's coins in the world. The original Krugerrands contain exactly one ounce (33.93 grams) of pure gold, plus a small amount of copper (2.826 grams) to create a stronger, more durable gold coin. Krugerrand therefore have a total weight of 1.0909 troy ounces (33.93 grams). Some new collectors worry that they are receiving less gold when buying a coin of less than 100% purity, but in truth 1 ounce Krugerrands contain exactly the same amount of gold as a 100% gold coin like the Canadian Maple Leaf. The weight of the additional metals is not counted in the gold's weight. The South Afrikan Krugerand coin was the first gold coin to contain exactly one ounce of pure gold. Previous gold coins such as gold sovereigns contained amounts of gold meant to correspond with the coin's face value as currency.

The Krugerrand is named after Paul Kruger, the Boer resistance leader fifth president of the South African Republic. Kruger's face is printed on one side of the coin, while a depiction of the springbok antelope is printed on the reverse. Both Kruger and the springbok antelope have become widely recognized symbols of South Africa.

Krugerands were first minted starting in 1967 to market South African gold abroad. The coin has legal tender status in South Africa, with it's value corresponding to the current market values of 1 troy oz. of gold. It was never intended to be used as a regular daily medium of exchange, but rather was made legal tender in order to be considered collectable. At the time, it was illegal for Americans to own gold bullion, but it was legal to own foreign coins. The Krugerrand made use of that loophole and became widely owned in the United States. In later years however, importing the Krugerrand into the United States and many other countries was banned to protest the Apartheid government. During the time of those bannings, other nations began minting their own gold coins with legal tender status to fill the gap.

In 1980 the Krugerand was released in different weights, specifically 1/10 oz. Krugerrands, 1/2 oz. Krugerrands, and 1/4 oz. Krugerrand gold coin. Also, in the early 1980s, silver Krugerands were minted, but their source remains a mystery as they were minted privately. There is no reference to South Africa anywhere on the coins, perhaps to bypass the Apartheid bannings. The name "Krugerrand" is printed on the coins, but the name Krugerrand is a trademark and was used without permission. There is no indication on the coins of who they were minted or issued by.

Despite the presence of Canadian Maple Leaf gold coins, Australian Kangaroo gold coins, and US American Eagle gold coins on the market, the South African Krugerand still maintains some prestige as the original legal tender coin whose value is based on its gold content. It is also popular for it's different appearance, having a slightly orange, penny-like copper tone that makes it stand out from other more lightly colored gold coins (either made with silver alloys, or of 100% pure gold). They are a fine addition to any collection, and a sound investment for any investor.

South African gold production falling

The situation for gold investors looks even brighter this week, as it has been reported that gold production in South Africa dropped 17% in the first quarter of 2008.

This is good for investors because as global demand is greater than the global supply, prices will rise. Demand in developing economies such as China and Russia remains strong and shows no signs of letting up.

The production drops were largely a result of the instability of the electricity supply servicing the mines. Mines have been asked to ration their electricity use to prevent total closures like the ones we saw for 5 days in January.

This is yet another element that limits the supply of gold and will likely drive its price higher.