Gold purity

Discussion in 'Gold' started by Stroctor, Oct 29, 2015.

  1. Stroctor

    Stroctor New Member

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    I was reading a story on zerohedge the other day and there was a story about the govt of India wanting the people to convert their idle gold to paper promises via some sort of exchange such as buying bonds. The requirement to "loan" their gold was thus:


    " The minimum deposit required will be 30 grams of gold with fineness measuring 995. It could include raw gold in the forms of bars, coins and jewellery, excluding stones and other metals."

    The question I have, if the govt wants the gold at a minimum of over 1 oz and 995 fineness, If someone was there with a horde of American eagles with a purity of .9167, the coins would be inferior to the program assuming fineness and purity are the same thing? Im new to gold so this created more questions for me on gold purity. I have seen where buffalos and maples are .999. Is it silly to get caught up with this or are there instances where eagles and kruggerands would not be as valuable?
     
    Stroctor, Oct 29, 2015
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  2. Porcello

    Porcello New Member

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    They all are 1oz of gold. Purity matters only in some countries due to initial sale subject to VAT/GST and for import customs tax duty.
    IMO buffaloes are nicer than eagles and tungsten eagles have been seen around, so I would rather buy buffaloes if the price is the same.
    Krugerrands and Eagles are better if you want to have a coin to play with (head or tail, hear the ring, etc.)

    In that specific Indian case, Eagles would have to be melted and refined in order to be used for the program.
     
    Porcello, Oct 29, 2015
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  3. Stroctor

    Stroctor New Member

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    Thanks Porcello, for the input. I've been looking at 1/4 oz gold Eagles lately. I hope these are too small to bother with fakes. The Buffalos would be great but only one year they did fractionals and those have a hefty premium.
     
    Stroctor, Oct 29, 2015
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  4. Ghost

    Ghost Member Silver Stacker

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    The real question is what on earth would possess you to swap your physical gold for some toilet paper promises...???
     
    Ghost, Oct 30, 2015
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  5. Porcello

    Porcello New Member

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    Yes, so far only 1oz eagle fakes have been seen around. There are technical problems with tungsten in small coins, so you should be safe with 1/4oz.
     
    Porcello, Oct 30, 2015
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  6. Stroctor

    Stroctor New Member

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    Good question. I guess we will find out how gullible the people of India are. My guess, I think they will have a lot of boating accidents over there.
     
    Stroctor, Oct 30, 2015
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