What is Rose Gold? Compare It with Gold and Gold Loans

In India, gold has always been one of the most valued metals, as it is considered a symbol of auspiciousness and wealth. Apart from its huge cultural significance, gold is also a preferred investment avenue due to its high value appreciation rate. Until recently, this metal used to be available in just one form, which is classic yellow gold.

Table of Content

• What is Rose Gold?
• Difference between Rose Gold and Yellow Gold
• Impact on Gold Loan
• Final Thoughts

But in the last few years, several different variants have been introduced, such as rose gold, white gold, etc., and gained huge popularity. As a result, now consumers have more options to choose from to suit their taste and preferences while purchasing gold items.

What is Rose Gold?

Rose gold is a modern variant of gold, characterised by its pinkish hue. Just like the classic yellow gold, this is also an alloy of pure gold, copper and a small amount of silver. But in this type of gold, copper content is significantly higher, which leads to its distinctive colour. Rose gold is also available with various purity levels, such as 14 karat, 18 karat, etc. For 18k rose gold, the typical composition is 75% gold, 22.5% copper and 2.5% silver. In 14K rose gold, the amount of gold can be around 58.5% with a much higher copper content. This is the main reason why jewellery items made with 14K rose gold have a deeper pinkish hue.

Nowadays, rose gold is very popular among consumers. While there are several reasons behind this, its versatility and higher durability are two major contributing factors. Currently, this gold variant is a preferred choice for contemporary jewellery items such as rings, chains, earrings, etc. 

Difference between Rose Gold and Yellow Gold

The main difference between rose gold and yellow gold lies in their composition. While both of them are made by combining gold, copper and silver, rose gold has high copper content. This is also the reason behind their different colours. This high percentage of copper also affects their durability. Rose gold is slightly harder and offers a higher amount of scratch resistance as compared to yellow gold.

However, there are a few things that remain unaffected by the colour of gold, and price is one of them. There is no difference between the price of rose gold and yellow gold if their purity level is the same. For example, if the market price of 1 gram of rose gold is X rupees, you’ll have to pay the same amount of money for yellow gold of the same caratage.

Impact on Gold Loan

Gold loans are considered a convenient option for arranging funds during financial emergencies. In this financing option, one can pledge his/her gold assets and borrow a certain percentage of the total value of those assets. Once the entire amount (principal + interest) is paid, the ownership of those assets can be reclaimed. Nowadays, there are several government-authorised financial entities that are offering quick and hassle-free loans. These lending institutions accept all types of gold jewellery, but the purity of those items and the current gold price play a crucial role in determining the loan amount. The higher the carat, the more money you can borrow against that particular gold asset. If you want to acquire a higher loan amount, it is recommended to pledge gold with high purity.

While you can avail a gold loan using jewellery items made with rose gold, the only condition is that their purity levels should meet the standard requirements (ranging from 18K to 22K). Also, the loan amount will be exactly the same for rose gold and yellow gold jewellery if their purity levels are similar. The reason behind this is that there is no price difference between rose gold and yellow gold.

Suggested Read: How are Gold Rates Determined in India?

Final Thoughts

In present times, rose gold has gained huge popularity among consumers due to its high style quotient, versatility and, most importantly, affordability. But when it comes to wealth creation, classic yellow gold is undoubtedly a better choice. Knowing the difference between these two variants can help you make the right decision. If you’re planning to obtain a gold loan, you can use either of these two.

Suggested Read: What Types of Gold Items can be used for Gold Loans

At Muthoot Finance, we offer quick and hassle-free gold loans at highly competitive interest rates. The best thing is that you can initiate the application online and get your loan approval in no time. You can reach out to us for any queries you have. Or visit your nearest Muthoot Finance branch to get more information.