Gold has a special status in the Indian household; it reflects wealth and financial security. However, one gets confused between 22 Karat and 24 Karat gold, which one is suitable for jewellery and which one is suitable for investment.
In today’s blog post, we will give you an overview of 22 and 24 Karat gold, along with the key differences between them.
Meaning of Karat in Gold
Gold is a highly valuable metal; however, it is also very soft in nature. It is mixed with various other metals, such as copper, silver, and zinc, to enhance its strength. And the karat is a measure of the purity of gold, that is, how much gold is present in a gold coin or jewellery.
What is 22 Karat Gold?
22 Karat is a kind of gold which generally contains 22 parts of pure gold and the remaining two parts made up of other metals such as copper, silver, etc. It is generally known as 22K gold or 916 gold. If we talk in percentage, it has 91.67% of pure gold, and the remaining 8.33% is of alloy.
Key Features of 22 Karat Gold
The key features of 22 Karat Gold are as follows:
- Purity: 22 Karat gold contains 91.6% pure gold, making it one of the purest forms of gold.
- Intrinsic Value: The 22-karat gold contains a higher intrinsic value because it contains a pure form of gold.
- Shape: 22 Karat gold can be easily moulded into different shapes of jewellery.
- Hallmark: 22 Karat gold is commonly stamped as 916 or 91.6% gold content.
What is 24 Karat Gold?
24 Karat Gold is called the purest form of gold, as its 24 parts consist of pure gold, and no metal or alloy is mixed in it. 24 Karat is generally written as 24K or 999, because it is 99.9% pure gold. It is priced the highest among all types of gold.
Key Features of 24 Karat Gold
The key features of 24 Karat gold are as follows:
- Hallmark: 24 Karat gold is hallmarked as 999 or 999.9 because of its highest form of purity.
- Colour: The 24 Karat gold has a natural, bright yellow shine.
- Softness: 24 Karat gold is very soft in nature and is very malleable; therefore, it is not recommended for daily use.
- Investment Option: If someone wants to invest in physical gold, it is recommended to purchase 24 Karat gold.
Difference Between 22 Karat Gold and 24 Karat Gold
The key difference between 22 and 24 Karat gold is as follows:
| Particular | 22 Karat Gold | 24 Karat Gold |
|---|---|---|
| Purity | It has 91.6% pure gold. | 24 Karat gold is 99.9% pure. |
| Colour | 22 Karat is deep yellow in colour. | 24 Karat gold is bright, rich yellow in colour. |
| Usage | It is generally used in jewellery making. | This type of gold is often used as an investment option. |
| Price | The price of 22 Karat gold is slightly lower than 24 Karat gold. | It has the highest price per gram. |
| Resale Value | It generally has lower resale value than 24 Karat gold. | 24 Karat gold has the highest resale value as it is the purest form of gold. |
| Hallmark | It has a hallmark code of 916 | The hallmark code of 24 Karat gold is 999. |
| Durability | It is more durable than 24 Karat gold. | 24 Karat gold is very soft in nature and is easily malleable. |
| Mixture | Other alloys and metals, such as copper, etc., are mixed in 22 Karat gold. | It is the purest form of gold; therefore, no other metals are mixed in it. |
Which one is a better investment option?
24 Karat gold is considered a better investment option than 22 Karat gold as it offers higher purity and resale value. 24 Karat is the purest form of gold in which no metal is mixed; therefore, investors get the full value without dilution from the alloy. It usually comes with lower or no making charges; therefore, one can easily purchase 24 Karat gold coins, bars, etc. In addition to this, it is widely accepted and is comparatively easier to liquidate.
Which one is a better option for jewellery?
Generally, it is considered that 22 Karat gold is better for jewellery because it offers durability, which is an essential feature in jewellery. As 24 Karat gold is very soft, it can easily bend in daily usage. Whereas, in 22 Karat gold, other metals are mixed, such as copper and silver, which makes it stronger and more durable than 24 Karat gold. Therefore, 22 Karat gold is suitable for jewellery options.
Read Also: Will Gold Rate Decrease in Coming Days in India?
How to verify the authenticity of 22 and 24 Karat Gold
To verify the authenticity of gold, whether it is 22 Karat or 24 Karat gold, one is required to check the BIS hallmarking on it. This is the most reliable method for verifying the purity of gold. 22 Karat gold has the BIS hallmark of 916, whereas 24 Karat gold has the hallmark of 999 or 999.9. The gold also has a HUID or Hallmark Unique Identification Number, which can be verified on the BIS care application.
Conclusion
On a concluding note, choosing between 22 Karat gold and 24 Karat gold depends on the objective of the user. If someone is looking to buy jewellery for consumption, then they must go with the 22 Karat gold as it offers a balance of purity and durability. On the other hand, if someone is looking for physical gold as an investment option, then they can consider 24 Karat gold because it is the purest form of gold and it has the highest resale value. However, BIS Hallmark must be checked by a person before purchasing any 22 Karat or 24 Karat gold.
However, one can invest in gold through ETFs offered by various AMCs using a simple and cost-efficient way to invest, platforms like Pocketful allow you to invest in Gold ETFs with free account opening and zero brokerage on delivery trades, making long-term gold investing more convenient and transparent.
Frequently Asked Questions (FAQs)
What is the difference between 22 Karat and 24 Karat gold?
The key difference between 22 Karat and 24 Karat gold is the purity. 22 Karat gold contains 91.6% gold, and the remaining part includes some alloy, whereas, on the other hand, 24 Karat gold is made up of 99,9% gold.
Why is 24 Karat gold more expensive?
24 Karat gold is made of 99.9% gold; therefore, it is the most expensive form of gold.
Among 24 and 22 Karat gold, which is suitable for jewellery options?
22 Karat gold is more suitable for jewellery options because it is more durable than 24 Karat gold, as it is made of gold and other metals.
Does 24 Karat gold lose its value over time?
No, 24 Karat gold does not lose its value over time.
Can I invest in 24 Karat gold through a demat account?
Yes, you can invest in 24 Karat gold through ETFs from a demat account. You can easily open a lifetime free demat account with Pocketful, as it also offers free brokerage on delivery trades. Also, the trading platform of Pocketful is equipped with advanced trading tools.
