Granules
Also: Shot, Grains, Pellets, Casting grain
Granules are small, irregular grains or beads of precious metal produced by pouring molten metal into water, used mainly 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 so-called quench granulation, molten metal is poured in a thin stream into a water bath: the melt breaks into small droplets that solidify abruptly, taking on their characteristic round to kidney-shaped form. The result is loose, free-flowing grains that are ideal for mechanical dosing and further processing.
Areas of use
Granules are used wherever precious metals need to be melted or precisely dosed:
- Jewellery manufacture – 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 – delivered scrap gold or broken gold is granulated for analysis and reprocessing, because grains allow 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 & storage | free-flowing, space-saving | stackable, dimensionally stable |
| Trading premium | low to none | variable by denomination |
| Suitability for investors | low | high |
You can call up the current gold price live at any time as the basis for the material value; you can conveniently determine the fine weight share of your granules with the melt value calculator.
Manufacture & fineness
Commercially available precious metal granules are offered 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; an in-house density test using Archimedes' principle or an X-ray fluorescence analysis can be used for verification.
Fine weight [g] = gross weight [g] × fineness [‰] ÷ 1000
Tax note
In the UK, investment gold (bars and wafers with a fineness of at least 995 ‰) is exempt from VAT (HMRC; investment gold). Whether fine gold granules (shot/grains) fall under this exemption depends on the specific form and tradability and may be classed differently from refinery to refinery – in case of doubt, VAT applies. For fine silver and platinum granules, 20 % VAT always applies. Notes on disposal gains and holding periods are not tax or investment advice – please consult a tax adviser on these matters.
In brief
Granules are the preferred industrial form for precious metals when fast melting, precise dosing and flexible lot sizes are required. They are hardly suitable for private investors, since their presentation and tradability are considerably more limited than those of bars and coins.