Gold and diamonds are staples of legends and tokens of love that have never lost their attraction.
Yet in terms of chemistry, they are nothing more than ho-hum collections of electrons, protons and neutrons. What makes them special is their extraordinary birthplaces, which, in the case of gold, is literally out of this world.
And this year we have seen major breakthroughs in the science of their creation that could change our perceptions of their true worth.
The high price of gold and diamonds is an economic reflection of a scientific fact: that the conditions in which they were formed are pretty unusual.
Contrary to common belief, gold and carbon - atoms of which form the raw material of diamonds - were not created in the cosmic Big Bang 14 billion years ago.
Indeed, only atoms of the two simplest elements, hydrogen and helium, were formed then, the universe expanding and cooling too fast to create anything more complex.
Everything we see around us owes its origins to nuclear reactions inside colossal, long-dead stars that died in supernova explosions, which then scattered their atomic spawn into the abyss of space.
Precisely how different types of atom were formed has been the subject of study for decades. But only recently has the astonishing truth about the origins of gold begun to emerge.
Scientists have long known that the heavier the atoms, the harder they are to create. Creating atoms heavier than iron is a real challenge, requiring intense pressure and temperature to create stable nuclei faster than their constituents can break apart.
In the case of really heavy elements such as gold, astrophysicists believed only the exploding cores of giant stars could provide the right conditions.
But there was a problem. Calculations showed that if that were true, gold would be far more common than it is. This suggested that it was formed somewhere even more exotic than in the heart of a supernova.
Earlier this year, scientists in Europe claimed to have found a suitable birthplace: the collision of two neutron stars.
These bizarre objects are the remnants of supernova explosions, and are incredibly dense, typically cramming the mass of two sun-like stars into a ball just 20-30 kilometres across. Some neutron stars end up in orbit around each other, slowly spiralling towards each other until they merge to form a black hole.
On the way, unimaginable pressures and temperatures are generated - and according to the new research, these are perfect for creating heavy atoms such as gold.
Researchers at the Free University of Brussels and the Max Planck Institute of Astrophysics, in Garching, Germany, reached their conclusions using computer simulations of the collision of two neutron stars.
As well as revealing the existence of suitable temperatures and pressures, the simulations showed that the cataclysm spews out heavy elements in quantities similar to those actually observed.
Based on estimates of the frequency of such collisions, the team believes these events may even be the prime source of such heavy elements. Astronomers are now on the look-out for neutron-star collisions showing signs of generating heavy elements. If they succeed, it will give us a whole new view of gold as the lustrous legacy of the birth of a black hole.
The image of diamonds may be about to have a makeover too, following another recent breakthrough. Natural diamonds are created deep in the heat and pressure that prevail in the Earth's mantle, hundreds of kilometres below our feet. These conditions compel carbon atoms to arrange themselves into a structure of unsurpassed strength, resulting in the cold, hard crystals we call diamonds.
Yet, while extraordinary, the conditions needed to form diamonds are not inconceivable, prompting Victorian scientists to have a shot at recreating them in the laboratory.
It proved much harder than anyone imagined. Not until 1955 did a team at General Electric in Schenectady, New York State, make headlines worldwide by announcing the creation of the first artificial diamonds, using a combination of 70,000 atmospheres pressure and temperatures exceeding 1,200°C.
But the end result was less than impressive: dull, dark specks fit only for industrial use. At the time, the team estimated it would be decades before gem-quality diamonds could be made.
Now their prediction has been proved right - though using a technique far removed from their own brute-force approach.
For some years, researchers at the Gemesis Corporation in Florida have been working on the creation of carat-sized, gem-quality diamonds in the laboratory using chemical vapour deposition (CVD).
Instead of crushing and heating carbon atoms into submission, CVD uses carbon atoms extracted from a gas such as methane to build up a diamond layer by layer inside a vacuum chamber.
Now, after a decade of research and development, Gemesis has begun marketing CVD-created diamonds. And, according to a report by the Gemological Institute of America, they are truly impressive, with only sophisticated laboratory tests capable of revealing their true origin. To look at, they have all the brilliance, sparkle and "fire" of very high quality natural diamonds.
Will they catch on? They certainly are not the choice of cheapskates: a decent-sized one-carat laboratory diamond created using the CVD method still carries a price tag of several thousand dollars.
In the end, those who can afford those prices may decide to pay the premium needed to buy a natural diamond. Which would be a shame, for if set in gold, it is clear the result would represent the union of human ingenuity and cosmic power.
Robert Matthews is Visiting Reader in Science at Aston University, Birmingham, England
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Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
One in nine do not have enough to eat
Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.
One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.
The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.
Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.
It is currently estimated that one in nine people globally do not have enough to eat.
On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.
Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.
RESULT
Al Hilal 4 Persepolis 0
Khribin (31', 54', 89'), Al Shahrani 40'
Red card: Otayf (Al Hilal, 49')
SHAITTAN
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What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
UAE currency: the story behind the money in your pockets
Rocketman
Director: Dexter Fletcher
Starring: Taron Egerton, Richard Madden, Jamie Bell
Rating: 3 out of 5 stars
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
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Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
UAE currency: the story behind the money in your pockets