Hunting for Gold

GENERAL GOLD INFO

2007-05-22T14:05:00.000-07:00

GOLD INFO A one ounce gold nugget will bring $2,000 to $4,000 on the collectors market. Per a letter from the Department of Agriculture, no permit is needed for recreational gold panning and gold prospecting in the general national forest areas, provided no machinery is used. Our gold panning and prospecting maps show many national forests with gold sites.
The gold maps tell you how to pan, where to look in a streambed and how to tell fool's gold from real gold. You can quickly learn to pan by following the instructions on your map. Some people like to pan for gold at public rights of way where bridges cross gold-bearing streams. Treasure hunters metal detect for coins at the rural schools and churches.A streak of gold mines and gold prospecting sites extends from near Montgomery, Alabama to Washington D.C. The gold was placed there when Africa overrode North America about 250 million years ago. North Carolina, South Carolina, Georgia, Virginia and Alabama have many gold mines and prospecting sites. These states were our main source of gold for 45 years before the California gold discovery. In 1837, the US Government established gold coin mints in Georgia and North Carolina, rather than transport the raw gold to the Philadelphia Mint.The largest true California gold nugget weighed 54 pounds. A 195 pound mass was also found. The 6,600 gold deposit sites shown on our six California gold prospecting and panning maps are continuous from Mexico to Oregon and to the Arizona and Nevada state lines. All gold sites on the prospecting and panning maps are from official records. We suggest that on first viewing, the pages shown below be viewed in left to right sequence

The Ancient Rivers of Gold

2007-05-22T14:00:00.001-07:00

The Ancient American River, Ancient Yuba River, Ancient Calaveras River, Ancient Mokelumne River, Ancient Tuolumne River, Ancient Magalia Channel, Ancient Intervolcanic Cateract Channel, Ancient Intervolcanic American River and the Ancient Jura River (from the Jurassic Period), are plotted in detail on Big Ten’s California Gold Map 5. The present-day rivers bearing the same names as their ancient rivers are also shown.

The Ancient Rivers of Gold in northern California are from the Tertiary Period. The Tertiary rivers existed millions of years ago and many of them had large quantities of gold within their gravels. Because of that, they are known as the "Ancient Rivers of Gold." Each ancient river is discussed below. Information on this page is based on the classic work of Waldemar Lindgren of the United States Geological Survey and by study of Big Ten’s California Gold Map 5, which shows the relationship of the ancient rivers to landmarks, such as roads, creeks and towns in the region.

These now-dry Tertiary rivers are thought to be a prime source of the gold found in many of the rivers and streams of the Mother Lode region of northern California. The ancient rivers are discontinuous and sometimes follow tortuous routes. They have been altered by volcanic activity, erosion, and in some instances portions of the rivers have been covered by lava. Much of the region underwent extreme volcanic eruptions. Volcanic flows have been found up to 4,000 feet deep. Volcanic flows were up to 60 miles in length. Portions of an ancient river may be found at ground level or near the top of a mountain, or on the side of a mountain, or buried.
Early prospectors found portions of the ancient rivers and worked them for their rich gold content. Later, mining companies used hydraulic mining or drift mining techniques to recover the gold. In hydraulic mining, water under pressure is directed to, for example, the side of a ravine to dislodge the gravels and send the material to the sluices where the gold is recovered. The equipment that was used (called a "monitor" or "giant") was similar to a very large hose nozzle.

Geologic reports speak of gravel deposits up to 250 feet deep with gold deposits interspersed at various levels within the gravels. Some of the gravels of the ancient rivers of gold have been cemented together over time. Smaller materials between the larger gravels have bound the larger gravels together. Drift mining is used in those instances to follow the channel underneath the volcanic covering. In drift mining, tunnels are driven in bedrock underneath the channels and when the channels are reached, the richest stratum, resting immediately on the bedrock, is extracted by underground mining methods and then washed at the mouth of the tunnel.

PRICE OF THE GOLD

2007-05-22T13:58:00.000-07:00

Gold an investment and Gold standard

LBMA USD morning price fixings ($US per troy ounce) since 2001
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 amount of gold present, with 24 karats being pure gold and lower ratings proportionally less. The purity of a gold bar 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.

The price of gold is determined on the open market, but a procedure known as the Gold Fixing in London, originating in September 1919, provides a daily benchmark figure to the industry. The afternoon fixing appeared in 1968 to fix a price when US markets are open.
The high price of gold is due to its rare amount. Only three parts out of every billion (0.000000003) in the Earth's crust is gold.

Gold price per ounce in USD since 1968, in actual US$ and 2006 US$
Historically gold was used to back currency; in an economic 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 ($664.56/kg), but in 1934 the dollar was revalued to $35.00 per troy ounce ($1125.27/kg). 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.

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. Central banks still hold historical gold reserves as a store of value although the level has generally been declining. The largest gold depository in the world is that of the U.S. Federal Reserve Bank in New York, which holds about 3% of the gold ever mined, as does the similarly-laden U.S. Bullion Depository at Fort Knox.
Since 1968 the price of gold on the open market has ranged widely, with a record high of $850/oz ($27,300/kg) on 21 January 1980, to a low of $252.90/oz ($8,131/kg) on 21 June 1999 (London Fixing). On 11 May 2006 the London gold fixing was $715.50/oz ($23,006/kg).
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.

METHODS OF INVESTING IN GOLD

2007-05-22T13:55:00.000-07:00

Investment in Gold
1 kg gold bars with Krugerrands in the background.
Investment in gold can be done directly through ownership, or indirectly through certificates, accounts, shares, futures etc.
Other than storing gold in one's own safe deposit box at a bank, gold can also be placed in allocated (also known as non-fungible), or unallocated (fungible or pooled) storage with a bank or dealer. In the case of the latter going bankrupt, the client will be unable to claim the gold and would become a general creditor, whereas gold held in allocated storage should be returned to the client in full[citation needed]. However even with gold held in allocated storage, many gold bugs would still choose their storage provider carefully, making sure of high net worth, with some preferring an offshore bank or storage facility.

Bars
Gold bar The most traditional way of investing in gold is by buying bullion gold bars. In some countries, like Austria, Liechtenstein and Switzerland, these can easily be bought or sold "over the counter" of the major banks. Alternatively, there are bullion dealers which provide the same service. Bars are available in various sizes, for example in Europe these would typically be in 12.5kg or 1kg bars (1kg = 32.15072 Troy ounces), although many other weights exist, such as the Tael, the 10oz or 1oz bar. Three gold sovereigns and Krugerrand
Coins
Gold coin
Buying gold coins is a popular way of holding gold. Typically bullion coins are priced according to their weight, with little or no premium above the gold price. Amongst the most popular bullion gold coins are the South African Krugerrand, the Canadian Gold Maple Leaf, the American Gold Eagle, the American Gold Buffalo, and the Australian Gold Nugget, all of which contain exactly one troy ounce of gold each. Other popular one ounce bullion coins include the Chinese Panda, and the Austrian Philharmonic. Gold coins which are used as bullion coins include the British gold sovereign and the Swiss Vreneli, but these are much lighter than one ounce. Again the large Swiss and Liechtenstein banks will buy and sell these coins over the counter. Also available is the gold dinar which has Islamic significance.

Certificate
Gold certificate
A certificate of ownership can be held by gold investors, instead of storing the actual gold bullion. Gold certificates allow investors to buy and sell the security without the hassles associated with the transfer of actual physical gold. The Perth Mint Certificate Program (PMCP) is the only government guaranteed gold certificate program in the world. Some argue that it is not the same as owning the real thing, as a certificate is just a piece of paper, especially in a war, crisis, or credit collapse.

Accounts
Digital gold currency and BullionVault
Most Swiss banks offer gold accounts where gold can be instantly bought or sold just like any foreign currency. Digital gold currency accounts and the BullionVault gold exchange work on a similar principle. Gold accounts are typically backed through unallocated or allocated gold storage. Different accounts impose varying levels of intermediation between the client and their gold, for example through bailment or within a trust. Bailment is the legal action of a client entrusting their physical property to another party for safekeeping, and paying for the service.