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Difference Between 22k and 24k Gold

Indian investors today have a plethora of investment options available to them. Based on their financial goals and risk appetite, they get to choose financial plans from different asset classes. Stocks, Mutual Funds, Real Estate, Gold, Bonds, etc are some of the popular investment options. Indians have always had a strong attachment to gold. We are one of the largest consumers of gold in the world. This precious metal has several meanings for us. It is considered auspicious, a status symbol, a sign of prosperity, and above all a safety net for future exigencies. You will be surprised to know that gold as an asset class has emerged as the best-performing one, beating both equities and bonds.

We purchase this glittery metal as jewellery or for investment purposes. You must have heard the term ‘karat’ while purchasing gold. You must have also heard that 24-karat gold is ideal for gold bars and coins whereas 22-carat, 20-carat, or 18-carat is most suitable for jewellery. Be it jewellery or investment, before purchasing gold you should be aware of the key difference between 22Kt and 24kt. Additionally, you should also be familiar with terms such as BIS Hallmark used for gold hallmarking. Gold is a commodity that has the potential to generate great returns and could be a great addition to a diversified portfolio. To make the most of this precious metal, sound knowledge about its various forms and utilities can help you make an informed decision.

What is a ‘Karat’?

While talking about gold jewellery, bars, and coins, one term that appears repeatedly is ‘Karat’. We talk about 24k gold coins or 24k gold jewelry. But what do we mean by this term?

Karat, represented by the letter ‘k’ is the term used for measuring the purity of gold. Karat is sometimes referred to as Carat too. The higher the karat value, the higher the purity of gold. Gold in its purest state is quite soft. It is often mixed with metals like copper, nickel, silver, or palladium to strengthen its composition and make jewellery.

The measurement for gold purity is done on a scale from 0-24, where 24k gold is the purest you can buy. This means that it doesn’t have any other metals mixed. It is usually used to make gold bars and coins. It is also referred to as 99.9 % pure gold.

22 Karat gold means that 22 parts are gold and 2 parts are other metals such as silver, nickel, zinc, etc. It is also referred to as 91.67 % pure gold. In other words, karat can also be a measure of the ratio of gold to other metals.

Difference Between 22k and 24k Gold

Now that we have understood the basic difference between 24k gold and 22k gold, let’s compare them in detail.

  24k Gold 22k Gold
Purity 24K signifies 99.9% purity 22K is approximately 92% pure gold
Texture Soft and pliable Harder and less pliable than 24k gold
Durability Less durable than 22k gold More durable than 24 k gold
Utilities Gold Bars, coins, some medical equipments, etc. Most commonly used for Gold Jewellery
Gold Price 24 carat gold price is more than 22k 22 carat gold price is less than 24k

Gold Hallmarking

Gold hallmarking is an assurance of purity. The Bureau of Indian Standards (BIS) is the National Standards Body of India. BIS Hallmark helps to determine the guarantee of authenticity and purity of gold and silver jewellery sold across the country. It assures buyers that the gold and silver articles purchased by them adhere to the set standards of purity and genuineness.

24k Gold or 22k Gold - Which one is better?

The answer to this question depends upon the purpose for which you are buying the gold.

24-karat gold is ideal for investment purposes or portfolio diversification. Since it is the purest form of gold, it is quite soft and not suitable for making jewellery. Because of its purity, it is more valuable than 22k gold. You can buy BIS Hallmarked 24k gold bars and coins to get the maximum value of gold when you sell it.

22 karat gold, along with 20k and 18k gold, is ideal for jewellery purposes as it is stronger than 24k gold. The design and intricacy of the design are also important factors for choosing 22k, 20k, or 18k gold.

Conclusion

Gold is an evergreen asset class. Whether it is for investment, meeting financial needs, or enhancing one’s aesthetics- this precious metal will never go out of style or favour. A few considerations while purchasing gold and clarity of the end purpose shall help you maximize the value of gold.

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