Granules
Also: Shot, Grain, Pellets, Schrot
Granules are small, irregular grains or pellets of precious metal produced by pouring molten metal into water, and are used primarily as an industrial and processing material.
Granules are one of the oldest and most practical forms in which precious metals are supplied to industry. In the process known as quench granulation, liquid metal is poured in a thin stream into a water bath: the melt breaks into small droplets that solidify almost instantaneously, taking on their characteristic round to kidney-shaped form. The result is a loose, free-flowing material that is ideal for automated metering and further processing.
Areas of Application
Granules are used wherever precious metals need to be melted down or precisely dosed:
- Jewellery manufacturing – gold granules (usually 999.9 ‰) are placed in an alloying crucible to produce carat alloys.
- Dentistry – dental alloys are melted from precisely weighed granules.
- Electronics industry – fine granules of silver or palladium serve as the starting material for conductive pastes and contacts.
- Refinery & refining – incoming scrap gold or broken gold is granulated for analysis and reprocessing, because granules allow for a homogeneous sample.
- Coin production – coin blanks are produced from standardised granules by rolling and stamping.
Advantages over Bars
| Property | Granules | Bars |
|---|---|---|
| Dosing accuracy | very high (gravimetric) | limited |
| Melting speed | fast (large surface area) | slower |
| Transport & storage | free-flowing, space-saving | stackable, dimensionally stable |
| Trade premium | low to none | variable depending on denomination |
| Suitability for investors | low | high |
You can check the current gold price as the basis for the material value at any time; the fine weight content of your granules can be easily calculated with the melt value calculator.
Production & Fineness
Commercial precious metal granules are offered by refineries such as Heraeus, Umicore, or Valcambi at fineness grades of 999 ‰ (fine silver) and 999.9 ‰ (fine gold). The fineness is stated on the delivery note or analysis certificate; an independent density test using the Archimedes method or X-ray fluorescence analysis can be used for verification.
Fine weight [g] = gross weight [g] × fineness [‰] ÷ 1000
Tax Note
In Germany, § 25c UStG exempts gold bars and plates with a fineness of at least 995 ‰ from VAT (investment gold). Whether fine gold granules (shot/grains) fall within this exemption depends on their specific form and tradability, and is assessed differently from refinery to refinery — when in doubt, VAT applies. Fine silver and platinum granules are always subject to the standard VAT rate. Notes on disposal gains and holding periods do not constitute tax or investment advice — please consult a tax adviser for your individual situation.
In Brief
Granules are the preferred industrial form for precious metals when fast melting, precise dosing, and flexible batch sizes are required. For private investors they are rarely suitable, as their presentation and tradability are considerably more limited compared with bars and coins.