Understanding the nuances of gold purity is crucial when considering purchasing it, whether for investment or adornment purposes. Terms like 24-karat gold and fineness numbers such as 999 or 995 are commonly encountered in this context, often causing confusion among buyers.
In the realm of gold, purity can be gauged through karats and fineness. According to the World Gold Council, a karat denotes the purity of gold mixed with other metals. 24 karat gold signifies pure gold, devoid of any other metal. Fineness, on the other hand, represents the gold content in parts per thousand. Ideally, 24 karat gold should have a fineness of 1.0 (24/24 = 1.00), while 22 karat gold would have a fineness of 0.916 (22/24 = 0.916). However, due to practical limitations, gold typically has minor impurities, with the highest refinement achievable being 999.9 parts per thousand, classified as 999.9 fineness or 24 karats.
| Aspect | Details |
|---|---|
| Purity Levels | When purchasing gold for investment or jewellery, understanding different purity levels is important. Common terms include 24-karat gold and fineness numbers like 999 or 995. |
| 24 Karat Gold | 24k gold is the purest form of gold, with no other metals mixed. It should theoretically have 1.0 fineness (24/24 = 1.00). However, in practice, 24k gold is often refined to a fineness level of 999.9 parts per thousand, indicating slight impurities. |
| Fineness | Fineness measures gold content in parts per thousand. For example, 24k gold should have a fineness of 1.0, but practically it is often 999.9. Similarly, 22k gold has a fineness of 0.916 (22/24 = 0.916). |
| Price | Gold’s price increases with purity. Thus, 24k gold (999 fineness) is more expensive than 22k gold. Likewise, gold with 999 fineness is more expensive than gold with 995 fineness, even if both are classified as 24k. |
| Fineness Comparison | According to Vikas Singh, MD & CEO of MMTC-PAMP, 995, 999, and 999.9 fineness levels are international standards defining gold purity per 1,000 grams. The differences indicate the levels of purity and slight variations in impurity content among them. |
| Gold Jewellery Options in 24 Karats | 24k gold is very soft, making it unsuitable for most jewellery. Typically, 24k gold is available in bars, coins, and bullion. Jewellery made from 24k gold is rare and often requires special machinery. Most jewellery is made from 22k or lower purity gold mixed with other metals for hardness and strength. 995 fineness items in the market include coins, bars, pendants, and other ornaments. |
| Jewellery Purity | Jewellery is generally made from 22k gold or lower, mixed with other metals to improve hardness, malleability, and strength. 23-karat jewellery is traditional and commonly found in smaller markets, especially in western India. |
| Hallmarking Rules | From June 16, 2021, the government mandated hallmarking for gold of 14KT, 18KT, 20KT, 22KT, 23KT, and 24KT purity levels. For 24k gold, 995 fineness is typically used. Hallmarking is mandatory for 24k gold except when buying gold coins, bullion, or bars. |
This table provides a detailed overview of the different aspects of gold purity, focusing on 24k gold, its applications, and the importance of understanding fineness and hallmarking.