22K vs 24K Gold: Purity Percentage, Meaning & Key Differences Explained
The key difference between 22K and 24K gold lies in their purity. 24K gold is 99.9% pure, making it the purest form of gold, while 22K gold contains 91.6% pure gold, with the remaining 8.4% made up of alloy metals like copper or silver for added strength.
In India, where gold holds deep cultural and financial significance, understanding this purity difference is essential when buying or investing in gold. Certified by the Bureau of Indian Standards (BIS) through hallmarking, 22K and 24K gold guarantee authenticity and purity, with 24K being ideal for investment due to its higher intrinsic value.
These hallmarks certify the gold's purity and act as a guarantee of its authenticity. Buying hallmarked gold ensures you get what you pay for and protects you from counterfeit or low-quality gold. The higher the purity, the more expensive the gold. Therefore, when buying gold for investment purposes, it is advisable to choose higher purity gold, such as 24k or 22k, as it carries a higher intrinsic value.
What Does Karat Mean In Gold Quality?
Karat (K) is a unit that measures the purity of gold in items like coins, bars, and jewellery. On the 0-24 karat scale, 24K gold is pure, while lower karats indicate the presence of alloy metals for added strength. Since gold’s purity isn’t visually identifiable, checking its karat value is essential when buying or selling. In India, 22K and 24K gold are the most commonly purchased, making it important to understand the difference between the two before making a purchase.
What Is 22 Karat Gold? Meaning and Purity Percentage
22K gold, also known as 22-karat gold, contains 91.67% pure gold mixed with 8.33% alloy metals like copper, silver, zinc, or nickel to enhance its strength and durability. It is the preferred choice for making jewellery and gold articles due to its balance of purity and durability.
Commonly referred to as 916 gold, 22K gold is more affordable than 24K gold. Its price fluctuates daily, influenced by factors like demand, global market trends, and import duties. Therefore, checking the latest 22K gold price is advisable before making any purchase or sale.
What Is 24 Carat Gold? Meaning and Purity Percentage
24-k gold or 24-karat gold is the purest form of gold available to customers or jewellers in the domestic and international markets. 24-karat gold contains 99,99% gold with no other mixed metal such as copper, nickel, zinc, or silver. However, 24-karat gold does not have 100% gold but only 99.99%. Hence, 24-karat gold is only extracted at 99.99% purity from gold ores in solid form.
Gold articles made from 24-karat gold are of the highest purity and are considered the best in quality. However, 24-karat gold is less popular to make gold jewellery due to its non-durable nature. Instead, it is used for electrical devices and other medical equipment.
22K vs 24K Gold: Quick Comparison Table
The difference between 24K and 22K is, 24K gold is 99.99% pure and highly valuable but soft, making it unsuitable for regular wear. 22K gold is 91.67% pure, with added metals like copper for extra strength, making it more durable for jewellery.
| Parameter | 22k Gold | 24k Gold |
|---|---|---|
| Purity | 91.67% | 99.9% |
| Composition | Gold + other metals (8.33%) | Almost pure gold |
| Durability | High – suitable for jewellery | Low – not suitable for regular wear |
| Appearance | Slightly darker gold | Bright yellow |
| Use Cases | Jewellery, ornaments | Investment, electronics, medical |
| Price | Lower than 24K | Highest |
22K Gold contains 91.67% pure gold and 8.33% alloy metals like copper or silver, which enhances its durability. This makes it ideal for crafting jewellery and ornaments. Its appearance is slightly darker, and it is priced lower than 24K gold.
24K Gold, with 99.90% purity, is considered the purest form of gold. However, due to its softness, it is not suitable for regular wear. It is mainly used for investment purposes, in electronics, and in medical applications. Its bright yellow color and high purity make it the most expensive form of gold.
Understanding these differences helps buyers choose the right type of gold based on their needs—whether for jewellery or investment.
Gold Karat and its Purity:
|
Number of Karat |
Gold Purity (%) |
|
9K |
37.5 |
|
10K |
41.7 |
|
12K |
50.0 |
|
14K |
58.3 |
|
18K |
75.0 |
|
22K |
91.7 |
|
24K |
99.9 |
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Why is 22K gold preferred over 24K gold?
While both 22 karat (22K) and 24 karat (24K) gold have their own merits, 22K gold is often preferred for certain applications, especially in jewellery, for a few reasons:
- Durability: 22K gold is alloyed with other metals (usually copper or silver) to make it more durable. Pure 24K gold is soft and can be easily scratched or damaged, making it less suitable for everyday wear.
- Colour and Appearance: The alloying process in 22K gold imparts a richer and deeper gold color compared to 24K gold. This can be aesthetically pleasing for jewellery, providing a warm and vibrant appearance.
- Affordability: Since 22K gold contains a lower percentage of pure gold, it is generally more affordable than 24K gold. This can make it a more practical choice for those looking for gold jewellery without the higher cost associated with pure gold.
Ultimately, figuring out what is the difference between 22k and 24k gold and which one to prefer among the two depends on individual tastes, the intended use of the gold (jewellery or investment), and budget considerations.
Which is the Better Investment Option? 24K or 22K?
In terms of investment, the choice between 22 karat (22K) and 24 karat (24K) gold depends on your investment goals and risk tolerance.
24K Gold:
- Purity: 24 karat gold meaning absolutely pure gold, makes it a straightforward investment in the precious metal itself.
- Market Value: The market value of 24K gold is directly linked to the current price of gold in the market.
- Liquidity: Pure gold is highly liquid and can be easily sold or traded globally.
- Long-Term Value: It may be considered a store of value over the long term.
22K Gold:
- Durability: The alloy in 22K gold provides durability, making it more suitable for everyday wear as jewellery.
- Aesthetics: The alloy also gives it a richer gold colour, which some individuals find more visually appealing.
- Market Value: While the market value is still influenced by the price of gold, it may not be as pure and may have additional value based on craftsmanship and design.
- Liquidity: 22K gold is generally liquid but may have additional factors influencing its value beyond the gold content.
Both options can be part of a diversified investment portfolio, but 24K gold might be seen as a more direct and straightforward investment in the metal itself. However, it's crucial to consider factors such as storage costs, market trends, and personal preferences when making investment decisions. Consulting with a financial advisor can provide tailored advice based on your specific financial goals.
Conclusion
Understanding the applications, characteristics and difference between 24 karat and 22 karat gold is essential for making informed decisions, whether for jewellery or investment purposes. While 24K gold purity percentage determines its investment preference, 22K gold emerges as the preferred choice for jewellery, combining durability and aesthetic appeal. Ultimately, the choice between 24K and 22K gold, and the decision to invest in jewellery or pure gold, should be made based on a careful consideration of your personal preferences, budget, and long-term financial goals.
As you explore the world of gold investments, consider the Gold Loan app from IIFL Finance, which provides a convenient and secure platform for managing your gold assets. If you own 22K gold the app offers a streamlined approach to unlocking the value of your gold assets, aligning with your financial objectives.
FAQs:
Q.1: What are the interest rates on IIFL Finance Gold Loans?
Ans: The gold loan interest rates are between 6.48% - 27% p.a.
Q.2: How can I apply for a Gold Loan with IIFL Finance?
Ans: Getting a gold loan from IIFL Finance is super easy! Click on the ‘Apply Now’ button mentioned above and fill in all the required details to get a loan approved in few minutes.
Q.3: What is the loan tenure for the IIFL Finance gold loan?
Ans: The loan tenure for an gold loan is according to the market.
Q.4: What to check while buying gold jewellery?
Ans: When buying gold jewellery, look for purity in karats, proper weight and hallmarking, Also check for the jeweller's return policy and warranty and proper documentation specifying the gold's purity, weight, and details.
Q.5: What type of gold is used in making jewellery?
Ans: 22k gold is used in jewellery as it contains 8.3 per cent mixed alloys, making it stronger and tougher.
Q.6: Which type of gold is suitable for daily use?
Ans: 22k gold is suitable for daily use as jewellery cannot be made out of 24k gold.
Q.7. Is 9K gold good quality?
Ans. Yes, 9K gold is a good choice for everyday jewellery. While it contains less gold (37.5%) than higher karat options, this makes it more durable for daily wear. The difference between 24k and 22k gold is all about purity. 24k gold is the purest (99%), but too soft for jewellery. 22k gold is 917% gold, a slightly less expensive option with a touch more durability than 24k.
Q.8. Which karat gold is best for daily use and is durable?
Ans. For everyday wear, 14k gold strikes the best balance. It contains 58.3% gold, making it more durable than higher karat options like 18k (75%) and 24k (pure). This added strength allows it to handle daily bumps and scratches better. While 9k (37.5%) is also durable, it has a lower gold content, affecting its shine and colour.
Q.9. Why is 24k gold not used in jewellery?
Ans. Due to its exceptional purity, 24k gold is very soft and malleable. It scratches and bends easily, making it unsuitable for everyday wear in jewellery.
Q.10. What are the benefits of 22k gold?
Ans. The addition of other metals in 22k gold enhances its durability. It can withstand daily wear and tear better than 24k gold, making it ideal for crafting beautiful and long-lasting jewellery.
Q.11. Where are 24k and 22k gold used?
Ans. Due to its high purity, 24k gold is primarily used for investment purposes in the form of bars and coins. 22k gold, on the other hand, is the gold standard for crafting beautiful and long-lasting jewellery.
Q.12. How are gold prices determined?
Ans. Gold prices are influenced by various external factors, such as the exchange rate of the Indian currency against the US dollar, oil prices, significant political events, and more. Internal factors, including government policies, interest rates, and the demand for gold, also impact gold prices in India.
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