first majestic silver

Go For Gold Series – Did You Know Quiz?

August 3, 2018

This month I have adopted a change in format, hopefully you have read the articles and are willing to take a test on your gold knowledge and see how well you fair?

You merely need to answer “Yes” or “No,” to the initial question. You can rate yourself at the end. There is a reward for those who answer honestly.

Gold’s History

  1. Did you know that the gold rush of 1886 in the Witwatersrand area gave rise to the city of Johannesburg? Johannesburg's other name, "Egoli" means City of Gold.
  2. Did you know that the world has mined 170 000 tons of gold of which half comes from South Africa?
  3. Did you know that the Rand Refinery was established in the 1920’s, it is the biggest in the world? It purifies to 99,9%, producing gold bars, Krugerrands, and medallions.
  4. Did you know that Krugerrands (the one ounce coins) were the first gold coin to be minted in 1967? There are now more than 65 million in circulation.
  5. Did you know that gold is used primarily for jewelry (43%) Exchange Traded Funds (ETF’s) (22%) Investment: bars and coins (20%) Central Banks purchases (8%) and Industry: electronics and dentistry (7%)?

Gold Mining

  1. Did you know that in the height of SA gold mining industry they produced 1 000 tons per year in the1970’s? Today they barely produce 140 tons.
  2. Did you know that SA used to employ 600 000 workers in the gold mining industry? Today it is barely 100 000.
  3. Did you know that China is the world’s biggest producer of gold? They produce 426 tons last year. SA is now ranked the 8th biggest producer, after Australia, Russia, USA, Canada, Peru and Indonesia.
  4. Did you know that China is also the biggest consumer of gold? They encourage their citizens to acquire gold, it even makes up part of their pay packet.
  5. Did you know that SA still has the world’s best gold reserves? It is roughly 50% of the worlds, a lot of it is very deep and not viable to mine at present prices.

Gold As Money

  1. Did you know that gold was fixed at $20,67 an ounce in 1900 and remained so for many years as there was no inflation?
  2. Did you know that being on the Gold Standard meant every country had to have gold reserves to match every piece of paper money they issued?
  3. Did you know that in the USA, in 1933, it was a crime to be in possession of any form of gold coins? The penalty was 10 years imprisonment or $ 10 000.
  4. Did you know that eight months after this law was implemented, President Roosevelt announced that the price of gold would go up by 75% to $35? He used this inflation to get the US out of deflation, caused by the Great Depression.
  5. Did you know that in 1971 President Nixon closed the “Gold Window,” this was the ability to swop dollars for gold, because of soaring inflation? As a result there was a massive boom in the price of gold, it went from $35 to $850 over nine years, a yield of 42% per annum.

Gold And Politics

  1. Did you know the highest price achieved for gold was $1 921 in Sept. 2011? This was a build up after the Great Financial Crash of 2008.
  2. Did you know the US has the world’s greatest gold reserves of over 8 000 tons? It is stored in New York at the Federal Reserve Bank and Fort Knox, Kentucky.
  3. Did you know that the world went off the Gold Standard in World War 1? They needed their gold to purchase armaments and provisions.
  4. Did you know South Africa used to earn 25% of their GDP through gold sales?
  5. Did you know today Russia’s Central Bank is the biggest buyer of gold for six consecutive years? Despite their good reserves in Siberia they are fascinated by the shiny metal and seem to have an insatiable desire for it.

Gold In The Bible (Bonus Questions)

  1. Did you know that gold is first mentioned in the book of Genesis 2:10 - 12? “It is where the four rivers come together … and the gold of that land is good….” This was in the Garden of Eden, it was alluvial gold. It was only after the catastrophic event of the flood that gold went underground.
  2. Did you know that gold is mentioned 417 times and silver 320 times in the Bible? It is important to remember who the owner of all of this is. “The silver is mine and the gold is mine, declares the Lord Almighty.” ~ Haggai 2:8.
  3. Did you know Abraham’s wealth was measured by his cattle and his gold and silver holdings? “So Abram went up from Egypt to the Negev ...  Abram had become very wealthy in livestock and in silver and gold.”  ~ Genesis 13:1-2
  4. Did you know that Solomon was the richest man in the Bible? "Therefore wisdom and knowledge will be given you. And I will also give you wealth, riches and honour, such as no king who was before you ever had and none after you will have.“ ~ 2 Chronicles 1:12
  5. Did you know that the streets of heaven are paved with gold? “… And the street of the city was pure gold, like transparent glass.” ~ Revelation 21:21

Score Card – How Well Did You Fair?

0 –5: You need to brush up on your gold knowledge.

6 – 10: You have a fair understanding of the gold industry.

11 – 15: You will make a good ambassador for the gold industry.

16 – 20: You have an excellent command of the gold industry and can apply for the chief economist position at the Chamber of Mines.

PS. All those who achieve a score of 17 or more, can pop by my office and collect your one ounce gold Krugerrand (chocolate version (J)…

Suggestion: Ideally, one should aim to make an investment in gold of between 5 - 10% of your total assets.  This should be in coins primarily, and maybe some in gold mining shares for the more aggressive investor.

Call To Action: Start building your vital Krugerrand gold collection today – it is so easy. I would love to show you how to implement a strategy of continually acquiring gold as part of your portfolio.

David Melvill ~ FSP No 17608

023 614 1215 - 083 284 2202

[email protected]

Brandy Hall 45 Long Street Montagu 6720


10 karat gold is 41.7% pure gold.
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