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There are actually several different methods of refining gold. Depending on the amount of gold you are using and the desired level of purity, the two most common methods of refining gold are using high temperature flames and refining gold using chemicals.
Flame refining is one of the oldest methods of refining metals. Even in the Bible, fire refining is mentioned as the preferred method for refining large quantities of gold. In ancient times, this type of refining required the artisan to sit by a blazing fire and stir and skim the molten gold from the crucible to remove impurities or dross that rose to the top of the molten metal. With flame temperatures in excess of 1000 degrees Celsius, the job is definitely a dangerous occupation for the alchemist. Apart from some advances in safety and precision, this tradition remains largely untouched today.
The second method of refining gold involves the use of chemicals. Strong acids are used to dissolve the impurities in the gold ore, which are then neutralized and flushed away. The resulting product is a sludgy substance that is almost pure gold (99.999% or 24K). This muddy material is dried until it becomes a powdery residue and then heated with a torch or other heat source to melt the gold powder into usable gold. The acids used for this process are nitric and hydrochloric acid.