Understanding Different Types of Gold Karats in India

From festivals like Dhanteras to auspicious occasions and investments, gold has a multi-faceted value across India. If you’re in the market for gold, understanding its purity is essential. This purity is measured in karats and has different levels, each being suitable for a certain occasion or utility. In this guide, we will walk you through the different types of gold karats in India and how it can help you make a financially sound purchase. Read on!

What are Gold Karats

Karats are the unit of measurement for the purity of gold, which in turn is determined by how much pure gold is in an item or piece of jewelry. The reason pure gold is mixed with other metals is simply because it’s too soft for everyday use. This mixing process, called alloying, makes it stronger and more resistant to wear and tear.

Pure gold is 24 karats (24K), and the alloying results in different karat values; each karat is suited to different uses in jewelry, investments, or as Gold Loan collateral. Naturally, the higher the content of gold, the greater the karat value and the more expensive the item.

Types of Gold Karats in India

24K Gold 

24K gold contains 99.9% pure gold, making it far too soft for everyday jewelry. It is commonly found in the form of coins or bars and used for ceremonial or investment purposes. It’s also typically used in medical or electronic devices due to its ability to be easily shaped.

During festivals like Akshaya Tritiya, purchasing 24K gold coins is seen as a way to invite wealth and fortune into the home. Since it doesn’t contain added metals, it remains valuable in the long term. Its market value is directly determined by the current market price of gold, and it’s highly liquid as well. Gold Loan providers often list 24K gold as eligible; this, together with the previous benefits, makes it a good financial asset.

22K Gold 

From the golden shine of a Mangalsutra to a bride’s jewelry on her wedding day, 22K gold is used most often in traditional jewelry in India. Composed of 91.6% pure gold and a small portion of metals, it is also known as ‘916 gold’. The alloy slightly dims the purity and distinctive shine but adds a much-needed layer of durability and strength. This makes it perfect for intricate chains, earrings, rings, and Mangalsutras.

Many Indian households also purchase 22K gold jewelry with the intent of passing it down through generations; this serves both decorative and long-term financial purposes.

18K Gold

This karat level makes for a durable option that also features elegance and grandness. With 75% gold and 25% alloys, 18K gold is ideal for rings, bracelets, and designs that are part of everyday fashion.

Jewelry made with 18K gold is often a favored choice for younger buyers who prefer sleek, contemporary styles. 18K gold is also ideal as an investment for those looking for durability and style alongside value and purity. An interesting utility of 18K gold and lower is its use in making white or rose gold. Both options have picked up in popularity over the past few years, especially for grand occasions among younger generations.

14K Gold 

14K is highly durable and used for pieces like watches, rings, and earrings that face regular wear and tear. A budget-friendly option, 14K gold contains 58.3% pure gold.

Like 18K gold, it too is used to make white gold; since the content of pure gold is lower, it shows less of a golden color under the typical rhodium coating of white gold. It’s an affordable and reliable entry point for urban buyers or those new to gold shopping, whether as jewelry or an investment.

10K Gold 

The most affordable, 10K gold contains just 41.7% pure gold. It’s less precious than all the other karats, notably since the number of alloyed metals is higher in proportion. However, 10K is undeniably sturdy and won’t bend or scratch easily.

This gold is used mostly in simpler pieces of jewelry like chains and rings. Due to its proportion of alloys, it could trigger skin allergies as well.

Investing In Gold

When choosing among the types of karats in gold investments, remember to consider your own tastes, risk tolerance, and requirements. While gold is broadly a wise investment to make, remember that not all karatage is eligible when it comes to taking a Gold Loan. Most importantly, ensure the gold you buy has the BIS (Bureau of Indian Standardization) hallmark – this hallmark is mandatory for most certified gold products sold within the country.

Think of a hallmark as a symbol that guarantees purity, assuring you of the authenticity of your purchase. It serves to accurately determine and record the proportionate content of gold in gold articles. Hallmarking also discourages adulteration and ensures manufacturers are held to a legal standard of fineness.

Look out for a six-digit number stamped into the gold, which is its Hallmarking Unique ID (HUID). Enter this HUID number into the BIS Care App to verify the authenticity of hallmarked jewelry. You can also get your existing gold tested for purity at any of the BIS-Recognized Assaying & Hallmarking Centres across the country.

To Conclude

Gold shares a rich and layered equation with Indian homes and families, making it important for you to understand its purity levels and complexities. This guide to the types of gold karats in India will ensure you make a reliable purchase that’ll shine on through the years.

If you want to tap into the value of your gold without selling it, opt for a Gold Loan from Poonawalla Fincorp. Enjoy up to 75% Loan-to-value with minimal documentation and at competitive interest rates. Get the experience of financial freedom with zero stress on your mind!  

Frequently Asked Questions

1. What karat gold is used in India? 

Typically, 24-karat gold is used for ceremonial and religious purposes since it’s the purest form of gold. 20K is used for ornate jewelry sets, while 18K gold is best kept for everyday use.

2. Which gold is best, 22K, 24K or 18K? 

The karat of gold depends on its intended purpose; 24K gold is reserved strictly for ceremonies and used in medical instruments, as it’s too soft to be used elsewhere. Both 22K and 18K are used in jewelry, though 22K has more pure gold than 18K. This makes it the better choice for bridal or designer jewelry.

3. Which is better, 18K or 916 gold?

A common misconception is that 916 gold is different from 18-karat gold. In reality, 18K contains 91.6% pure gold, leading to it also being known as ‘916 gold’. This mix of gold and alloys makes it durable while remaining radiant.

4. What karat gold is best for everyday use? 

18K and 14K are both common options for everyday use. Of the two, 18K contains more pure gold, making it shinier and a bit grander than the more affordable 14K. The most affordable is 10K with 41.7% pure gold, but it can trigger allergies due to its high alloy composition.