Granules
Also: Shot, Grains, Pellets, Casting grain
Granules are small, irregular grains or beads of precious metal formed by pouring molten metal into water; they serve mainly as industrial and processing feedstock.
Granules are among the oldest and most practical supply forms for precious metals in industry. In so-called quench granulation a thin stream of molten metal is poured into a water bath: the melt breaks into small droplets that solidify instantly, taking on their characteristic round to kidney-shaped form. The result is loose, free-flowing grain that is ideal for machine dosing and further processing.
Where granules are used
Granules turn up wherever precious metals must be re-melted or dosed with precision:
- Jewellery making – gold granules (usually 999.9 ‰) are placed in an alloying crucible to produce karat alloys.
- Dentistry – dental alloys are melted from precisely weighed granules.
- Electronics industry – fine silver or palladium granules serve as starting material for conductive pastes and contacts.
- Refinery and refining – incoming scrap gold or broken gold is granulated for analysis and reprocessing, because grain allows a homogeneous sample.
- Coin production – coin blanks are made 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 and storage | pourable, space-saving | stackable, dimensionally stable |
| Trading premium | low to none | varies by denomination |
| Suitability for investors | low | high |
You can call up the current gold price as the basis for the material value at any time; work out the fine-weight portion of your granules easily with the melt value calculator.
Manufacture and fineness
Standard precious-metal granules are supplied by refineries such as Heraeus, Umicore or Valcambi in finenesses of 999 ‰ (fine silver) and 999.9 ‰ (fine gold). The fineness is shown on the delivery note or assay certificate; a density test by the Archimedes method or an X-ray fluorescence analysis can be used for verification.
Fine weight [g] = gross weight [g] × fineness [‰] ÷ 1000
Tax note (Ireland)
Investment gold is exempt from VAT in Ireland under the VAT Consolidation Act 2010 (Schedule 1) and EU Directive 2006/112/EC, provided it meets the qualifying criteria for bars or coins. Whether fine-gold granules (shot/grain) fall within that exemption depends on their specific form and tradability and is assessed differently from one refinery to another — where in doubt, VAT is likely to apply. Fine silver, platinum and palladium granules always attract the standard Irish VAT rate of 23 %. This is not tax advice — please consult a qualified adviser; the Revenue Commissioners (revenue.ie) are the authority on VAT treatment.
In brief
Granules are the preferred industrial form for precious metals when fast re-melting, precise dosing and flexible batch sizes are needed. They are of little use to private investors, since their presentation and tradability are far more limited than those of bars and coins.