Gold Purity and the Carat System Explained
The carat system (spelled "karat" in some countries) is the standard measure of gold purity used worldwide. Pure gold is defined as 24 carats (24K), meaning all 24 parts out of 24 are gold. When gold is mixed with other metals, the carat number decreases proportionally.
Here is a quick reference for the most common gold purities available in India:
| Carat | Purity (%) | Gold Parts | Other Metals | Common Use |
|---|---|---|---|---|
| 24K | 99.9% | 24/24 | None | Investment (bars, coins) |
| 22K | 91.6% | 22/24 | 8.4% (copper, silver, zinc) | Jewellery |
| 18K | 75.0% | 18/24 | 25% (various) | Studded/designer jewellery |
| 14K | 58.3% | 14/24 | 41.7% (various) | Western-style jewellery |
In India, the two most relevant purities are 24K and 22K. When news channels report "today's gold rate," they typically show both — 24K for investment reference and 22K for jewellery buyers.
Why 24K Gold is Not Used for Jewellery
Pure 24K gold is extremely soft and malleable. It can be dented with a fingernail and would not hold its shape in intricate jewellery designs. This is not a marketing gimmick — it is a fundamental physical property of pure gold.
When jewellers create ornaments from 24K gold, the pieces bend easily, stone settings loosen quickly, and detailed engravings wear down within months of regular use. This is why 24K gold is sold only in the form of bars, coins, and biscuits — shapes that do not require structural integrity.
22K gold solves this problem by alloying gold with 8.4% of harder metals like copper, silver, and zinc. These additions make the gold hard enough to hold complex shapes, withstand daily wear, and securely hold gemstone settings. The resulting alloy retains the beautiful warm yellow colour of gold while being significantly more durable.
South Indian jewellery, which tends to be heavier and more ornate, is almost exclusively made in 22K gold. North Indian jewellery also primarily uses 22K, though some lighter modern designs may use 18K or 14K gold.
Price Difference Between 22K and 24K
The price difference between 22K and 24K gold is directly proportional to the purity difference. Since 22K gold contains approximately 91.6% pure gold (versus 99.9% for 24K), the base metal rate is roughly 8% lower.
As of mid-2025, the approximate price difference is:
- 24K gold: Rs 93,800 per 10 grams
- 22K gold: Rs 85,980 per 10 grams
- Difference: approximately Rs 7,820 per 10 grams (about 8.3%)
However, when buying jewellery, the final price includes making charges (8-25% of gold value), wastage charges (1-5%), and 3% GST. These additional costs mean that 22K jewellery can cost 15-35% more than the raw gold value, depending on the design complexity and the jeweller.
For investment purposes, 24K gold bars and coins are sold at a premium of just 1-3% over the spot gold rate, making them far more cost-efficient than jewellery for pure investment.
BIS Hallmarking — Your Protection Against Fraud
The Bureau of Indian Standards (BIS) hallmarking system is your primary defence against impure or adulterated gold. Since June 2021, hallmarking has been mandatory for gold jewellery sold in India.
A BIS hallmark on gold jewellery consists of three marks:
1. BIS Logo — The triangular BIS standard mark confirms the jewellery has been tested at a BIS-recognised assaying and hallmarking centre.
2. Purity/Fineness Number — This indicates the exact gold content:
- 999 for 24K (99.9% pure)
- 916 for 22K (91.6% pure)
- 750 for 18K (75.0% pure)
- 585 for 14K (58.3% pure)
3. HUID (Hallmark Unique Identification) Number — A 6-digit alphanumeric code unique to each piece of jewellery. This is the most important innovation in the hallmarking system. Every HUID can be verified on the BIS Care app or website, allowing you to confirm the purity, jeweller details, and hallmarking centre for any piece of gold.
How to Verify Your Gold Using HUID
The HUID system introduced in July 2021 has been a game-changer for consumer protection. Here is how to use it:
- Download the "BIS Care" app from Google Play Store or Apple App Store.
- Open the app and select "Verify HUID."
- Enter the 6-digit HUID code engraved on your jewellery.
- The app displays the purity (e.g., 916 for 22K), the jeweller name and registration number, the assaying centre that tested the piece, and the date of hallmarking.
If the HUID is not found in the database or the details do not match, the jewellery may be counterfeit or not properly hallmarked. In such cases, you can file a complaint directly through the BIS Care app.
Always insist on buying BIS-hallmarked gold with a HUID number. This is especially important when purchasing from smaller or unfamiliar jewellers. Reputable chains like Tanishq, Malabar Gold, Kalyan Jewellers, and Senco Gold provide proper hallmarking on all pieces.
Which Should You Buy — 22K or 24K?
The answer depends entirely on your purpose:
Buy 24K gold (bars/coins) if:
- Your goal is pure investment and wealth preservation.
- You want the highest purity and resale value per gram.
- You plan to hold for 5+ years without wearing it.
- You are buying through banks or government-authorised dealers.
- You want to eventually convert to Sovereign Gold Bonds or Gold ETFs.
Buy 22K gold (jewellery) if:
- You need jewellery for a wedding, festival, or personal use.
- You want ornaments that can withstand daily wear.
- Cultural or family traditions require gold jewellery.
- You value both aesthetics and investment in one purchase.
Avoid buying gold jewellery as a pure investment. The making charges (8-25%), wastage, and GST mean you are paying a significant premium over the metal value. When you resell jewellery, most jewellers deduct making charges entirely and may also charge melting/testing fees. This can result in an immediate 15-30% loss compared to the purchase price.
For pure investment purposes, the hierarchy is: Sovereign Gold Bonds (best) > Gold ETFs > 24K gold coins/bars > 22K gold coins > Gold jewellery (worst).
Key Takeaways
- 24K gold is 99.9% pure and used for investment (bars, coins). 22K gold is 91.6% pure and used for jewellery.
- The price difference between 24K and 22K is approximately 8%, reflecting the purity gap.
- 24K gold is too soft for jewellery — it bends and deforms with regular wear.
- Always insist on BIS-hallmarked gold with a HUID number and verify it on the BIS Care app.
- For investment, buy 24K gold or better yet, Sovereign Gold Bonds and Gold ETFs.
- For jewellery, buy 22K gold from reputable BIS-registered jewellers.
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