It's a 5 min. job with the pen tool. Use the Width Tool along with the Appearance Panel to add an additional stroke for the gold border. Draw 1/4 of it and dup. around the center. Many more tricks, but you'll learn them as you progress.
Remember that in a job like this you only need to draw one eighth of the frame. The rest is all done by reflect-copying.
I think I would start by drawing the red bits, producing the gold afterwards as a stroke behind the red.
I think rcraighead and steve are putting you on the right track.
Yep, using effects like that is indeed one way.
In this case though I think it is probably better to do the thing physically, or at any rate expand the effects afterwards and join everything up properly.
Especially if you want directional lighting and that sort of thing. It depends on how precisely you want to reproduce the embossed look of the original.
I forgot to two steps:
Now, each 1/8th is it's own object, which you can connect to the others using the Pathfinder panel tools, or you can do it individually, point by laborious point.
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