All articles
EDUCATIONApril 18, 2026·7 min read

Gold Purity Explained: 24K vs 22K vs 18K — What Every Buyer Needs to Know

Gold purity (24K, 22K, 18K, 999, 916) affects price, durability, and investment value. This complete guide explains what the numbers mean and which purity to buy for your goals.

gold purity24K gold22K vs 24Kgold hallmarkgold karat explained

Walk into any jewellery shop or bullion dealer and you'll hear 24K, 22K, 18K, 999, 916, 750 thrown around interchangeably. These numbers all describe the same thing — how pure the gold is — but expressed in two different systems. Once you understand the conversion, you'll never be confused again.

The Two Systems: Karats and Fineness

Karats (K) express purity out of 24. Pure gold is 24 karats because 24/24 = 100%.

Fineness expresses purity per thousand. Pure gold is .999 or .9999 because 999 or 999.9 parts per thousand are gold.

The conversion: Fineness = (Karats / 24) × 1000

KaratFinenessGold %Common use
24K.999 / .999999.9%Investment bars, coins
22K.91691.6%Indian jewellery, Sovereigns, Eagles
18K.75075%Western jewellery, luxury watches
14K.58558.5%US jewellery market
9K.37537.5%UK budget jewellery

24K Gold: The Investment Standard

24-karat gold (fine gold at .999 or .9999) is what serious investors buy. Every major investment product — PAMP Suisse bars, Perth Mint bars, MMTC-PAMP bars, Chinese Panda coins, Canadian Maple Leaf coins — is .9999 (four nines) fine.

The purity matters for several reasons:

  • Resale value: dealers quote buyback prices based on gold content weight. A .9999 bar has the highest gold content per gram of product weight.
  • LBMA good delivery: large bars (400 troy oz) that trade between central banks must meet LBMA standards, minimum .9995 fine.
  • No alloy risk: other metals mixed into lower-karat gold can cause tarnishing, corrosion, or skin reactions in jewellery — irrelevant for bars but matters for wearable items.

The one drawback of pure gold: it's soft. A 24K coin scratches easily and isn't ideal for jewellery that endures daily wear. For investment, this doesn't matter.

22K Gold: The Jewellery and Coin Standard

22-karat gold (.916) is the traditional jewellery standard in India, the Middle East, and much of Asia, as well as for some iconic investment coins. The 4% alloy (typically copper or silver) makes it significantly harder and more durable for wearable items.

Notable 22K investment products:

  • British Sovereign: 7.32g of .916 gold = 6.71g of pure gold per coin
  • American Gold Eagle: .9167 fine (22K) — the most popular US gold coin
  • South African Krugerrand: .9167 fine, original investment gold coin (1967)

When comparing 22K and 24K products by price, you must compare by gold content — not total weight. A 10g 22K bar contains only 9.16g of gold; a 10g 24K bar contains 9.99g. Always check gold content grams, not product weight grams.

18K: Jewellery Grade, Not Investment Grade

18-karat gold (.750) is the standard for fine Western jewellery and luxury watches. At 75% gold, there's significant alloy content — typically copper, silver, or palladium depending on the colour (yellow, rose, or white gold).

For investment purposes, 18K is generally not recommended:

  • Higher premium per gram of pure gold content than 24K bars
  • Harder to resell at accurate melt value (jewellery gets assessed with labour premium stripped away)
  • Making charges on jewellery (in India, typically 8–25%) are pure cost that can't be recovered at resale

Exception: if you buy jewellery with genuine vintage or designer value (Cartier, Bulgari, Tiffany), the brand premium may exceed the making charges. But this is jewellery collecting, not bullion investing.

How to Verify Purity When Buying

Hallmarks

Reputable products have clear hallmarks. On gold bars, look for the fineness number (.999, .9999), refiner's mark, weight, and in India, the BIS HUID number. On coins from major mints, the purity is stamped on the coin itself.

Assay certificates

Investment bars from accredited refiners (PAMP, Perth Mint, MMTC-PAMP, Valcambi) come with an assay card or certificate. The bar is sealed in a blister pack that, once broken, cannot be resealed — proof that the contents haven't been tampered with. Keep the assay card; it enhances resale value.

For suspicious purchases

If you're buying secondhand or from an unverified source, a reputable dealer or jeweller can test purity with an XRF analyser (non-destructive) or fire assay (destructive, for legal/insurance purposes). Cost is typically $20–$50 for XRF.

What to Record in Your Portfolio Tracker

When logging a holding in BullionKeeper, the purity field matters for accurate valuation. The app calculates your portfolio value as weight × purity × spot price. A 10g bar at 22K is worth less at spot than a 10g bar at 24K — the tracker handles this automatically when you enter the correct purity.

Enter purity as: 999 or 999.9 for 24K, 916 for 22K, 750 for 18K. The app converts to decimal and applies to your weight correctly.

Summary

  • For investment: always buy 24K (.999/.9999) — maximum gold content, lowest premium per pure gram, easiest to resell
  • For coins: 22K Eagles/Sovereigns/Krugerrands are fine — compare by gold content not coin weight
  • For jewellery: buy what you love — but understand you're paying making charges that reduce investment efficiency
  • Always check the hallmark and keep the assay certificate

Track your gold purity portfolio — free

Cost basis, live spot prices, photo docs, and AI insights. Free forever for the first 25 holdings.

Open your vault — free

More from the Vault Blog