Using two-phase (water–toluene) reduction of AuCl₄ ^– by sodium borohydride in the presence of an alkanethiol, solutions of 1–3 nm gold particles bearing a surface coating of thiol have been prepared and characterised; this novel material can be handled as a simple chemical compound.

Stable functionalised gold nanoparticles are prepared by simultaneous reduction of tetrachloroaurate ions and attachment of bifunctional organic thiol molecules to the growing gold nuclei leading to a material whose chemical behaviour is characterised by the vacant functionality of the bifunctional thiol ligand.