BY : MOHD JEFRI RADIUS
WHAT is the definition of Gold? The Dictionary of Science compiled by EB Uvarov and Allan Isaacs described Gold as ‘an element having an Atomic Weight of 196.967 and Specific Gravity of 13.3.’
The metal is symbolised with the chemical sign of AU, extremely malleable and ductile not corroded by air and water, but dissolved in Aqua Regis, a mixture of Nitric and Hydrochloric acids solution 1 to 4 volume.
Gold is extracted from one ore and sand by the amalgamation and cyanide process .Alloy with copper and silver to give hardness for coinage, jewellery and dentistry.
Since the dawn of Human civilisation, gold literally known as ‘Precious Yellow Metal’ has been sought universally for its natural glitter and commercial values.
Recent archaeological excavations at sites of ancient mummified Egyptian corpses, believed to be of royal families, revealed that the corpses had been dispossessed of their valuable items by burglars, who managed to sneak or break unnoticed into the secret cavities of the Great Pyramid.
Western folklore tells of the alchemist, who was conducting an array of experiments to produce the yellow metal conventionally by way of spinning ‘hay stalks into gold’, a dream which had turned out to be elusively amusing, but had become a tale in chemistry.
The early European merchants plundered other lands in search of ‘The Golden Treasure Islands’, which had been capturing their imaginations endlessly for centuries.
In modern times human social desire to acquire the precious yellow metal took a new form. During World War Two, Nazi Germany looted gold bullions worth about US $ 20 billion on today’s market value.
Paradoxically, only a fraction of this gold was recovered by the Allies and most of the ingots were kept in the Swiss Central Bank and other prestigious financial institutions.
A report once stated that the Nazi gold, which were stolen from the victims of holocaust or looted from banks in the occupied countries could have ended up in China.
The creator of The James Bond Spy thrillers, Ian Fleming, was sent to The Portuguese Enclave of Macau on espionage mission, to obtain secret information on the city’s gold trade, according to a source.
Fernando Brito, who worked in 1969 for the Gold Import Commission in Macau, claimed fours tonnes of Nazi Gold Ingots engraved with ‘Reichsbank’ and bearing the eagle and ‘Swastika’ as despatched from Lisbon through the Portuguese Enclave .
Macau enjoyed a thrilling Gold Trade between the late 1940’s and 1970’s because the enclave was outside the Bretton Woods International Financial Agreement of 1944, under which The World Bank and The International Monetary Fund were established.
Brito also claimed that some of Macau’s established bankers supplied China with Gold until U.S Trade Restriction on Beijing was lifted in the wake of the late U.S President Richard Nixon’s visit to the Chinese capital in 1972.
“It was the first time Macau had been revealed as the beneficiary of the Nazi Gold, ” The Vice President of The Israeli World Jewish Restitution Organisation, Naphtali Lavie, was quoted as saying in the AFP report published way back in Jan 6, 1998.
Gold is a solid and sound investment, an ideal gift and ultimate in jewellery. The fineness and the net weight of the metal is specified in The Assay Certificate, indicating its percentage of purity.
Before bank notes came to be used, gold was the dominant currency for large parts of the world, In time of inflation, the metal can be a valuable commodity, because it is considered more stable than a devalued currency and its prices could rise.
As an example, previously Switzerland was looking to sell some of its gold reserve, partly to raise money for the Holocaust Fund, while Belgium and the Netherlands sold several hundred tonnes of the yellow metal for the sole objective of bringing down their holding to around 31 per cent of the national total reserve, the average figure for the European Union, while preparing for the Launch of the Europe’s Common Currency way back in 1999.
The Union Bank of Switzerland (U.B.S) had unveiled its new range of gold bars incorporating the patented Kinegram, a security feature found in Gold Bars known as ‘The Kinebar’.
By using Optic Technology, the appearance of the Kinebar could be transparently enhanced by its two dimensional computer generated image, thereby making it looks like Ruby, Jade and Diamond.
This sophisticated technology in the creation of security features as used extensively in passports, visas, and bank notes etc is being developed by the Swiss based Landis and Gyr Communications, while the Union Bank of Switzerland has been vested with the exclusive rights worldwide to apply the Kinegram to precious metals.
The Uniqueness and Scarcity of an object, monument, places of worships, become more significant when gold constitutes one of the component materials.
The construction of Golden Buddha statue with the size of 2.8 metres and using 160 kilograms of Gold, 10 kilograms of Platinum and 60 kilograms of Silver, encrusted with Diamonds, Pearls and Rubies, in The People Republic of China make it a rare treasure within the country and the world.
In Malaysia, The Trade Description Act (Articles made of precious metals) Regulations 1994, protect consumers and tourists from fake jewellery and garner their confidence in the quality of locally made precious metal jewellery.
Gold to be sold must be in the Standard Fineness of 999, 950, 916, 875, 835, 750, 585 and 375. The New Regulation will compel jewellery to follow the Standard of purity for Gold, Silver and Platinum under which a corporate offender could be penalised up to the maximum RM 500,000 for the subsequent offence .
Globally, The US has the largest Gold Reserve totalling more than 261.72 million troy ounces, secondly Germany (95.18 million Troy ounces) and thirdly, Switzerland (83.23 million Troy ounces).
Retrospectively, the previous economic turmoil which stormed the Asian region had turned some countries focusing their attention on effective austerity drives in order to soften the drastic blow to the ailing economies.
In Malaysia, former premier Tun Dr Mahathir Mohammed steered the country’s fiscal direction to adopt ‘The Fixed Currency Regulation’ during the Asian Financial Crisis and the formula works in favour of the nation’s economic recovery until today.
While the South Korean Government took a totally different measures by legalising the means of securing and collecting gold in the forms of jewelleries from their dedicated citizens.
The entire South Koreans population at that material time had truly set an exceptional example in the manifestation of this measure, queuing up in line to turn over their personal gold jewellery, as part of the their nationwide campaign to help their country ‘s economy back on its feet via exporting gold held by its citizens, thereby setting the precedence and blessed with the wisdom of seeking the last straw and effective remedy in rescuing their country on the brink of fallout during the height of crucial economic crisis plundering the Asian regions previously.
Would there be others on this globe with the kind of open hearts willing to emulate the whole hearted dedication and sacrifice shown by the South Korean People?
Patriotic people certainly love their country, but the irony is not everybody in the developing countries may have the capacity neither the resources considered suffice to soften the hard blow brought forth by the acute economic crisis, what more the willingness to part away with their valuable belongings. Hence, the South Korean people deserved that distinctive salutation for having set this fine historic example for the whole world to learn in the midst of similar turmoil.
A decade ago, reports of Gold discovery in the Indonesian Province on the world’s third largest island of Borneo, that turned out to be a faked, costing investors with heavy financial losses made headlines in several International medias.
The Canadian Mining Firm namely The Bre X Minerals Ltd, announced that the company had found Gold in Busang Mine, East Kalimantan.
The Bre–X Minerals Ltd, market capitalisation was at the peak price of Canadian $26.80 per share. When trading of the company’s share resumed after one day’s suspension on the Toronto Exchange, the prices dropped from Canadian $ 3.30 to about Eight Canadian cents!.
The quantum of the losses and damages being sought rank the Busang Affairs as one among the biggest financial fraud cases in history. This is just a testimony of our modern society intrinsic mania, common in the capitalist countries that practise the Free Market System, where ‘the Sky is the limit’ for those who seek to satisfy their lust and desire for more financial assets regardless of business methodology, techniques and modus operandi. There may be some truths in the adage to remind people of the whim and fancy roaming the earth, which says, “All that glitter is not Gold neither it is a Diamond when it sparks.”
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