Difference Between 22k and 24k Gold

Indian investors today have a plethora of investment options available to them. Based on their financial goals and risk appetite, they get to choose financial plans from different asset classes. Stocks, Mutual Funds, Real Estate, Gold, Bonds, etc. are some of the popular investment options. Indians have always had a strong attachment to gold.

We are one of the largest consumers of gold in the world. This precious metal has several meanings for us. It is considered auspicious, a status symbol, a sign of prosperity, and above all a safety net for future exigencies. You will be surprised to know that gold as an asset class has emerged as the best-performing one, beating both equities and bonds.

Table of Contents

• What Is a Karat?
• What Is 24K Gold?
• What Is 22K Gold?
• Difference Between 22K and 24K Gold
• Gold Hallmarking
• 24K Gold or 22K Gold - Which One Is Better?
• Conclusion

People purchase gold as jewellery for investment purposes. At the time of purchasing gold, karat is a term that one often comes across. You must have heard that 24K gold is considered to be ideal for gold bars and coins, while 18K, 20K, and 22K gold are considered to be well-suited for jewellery. Whether you are purchasing jewellery or you are buying gold as an investment, it is crucial to understand the difference between 22K and 24K gold. Furthermore, it is also important to be familiar with terms, like BIS Hallmark, which is used for gold hallmarking. Whether it is 22K gold or 24K gold, as a commodity, this metal has great potential for generating high returns and is a great addition for diversifying your investment portfolio. To maximise the advantages of investing in this precious metal, having information about its various forms, understanding 22K vs 24K gold, and its utilities will go a long way in helping you make an informed decision.

What Is a Karat?

While talking about gold jewellery, bars, and coins, one term that appears repeatedly is Karat. We talk about 24K gold coins or 24K gold jewellery. But what do we mean by this term? And what is the difference when it comes to 22K vs 24K gold?

Karat, represented by the letter k is the term used for measuring the purity of gold. Karat is sometimes referred to as Carat too. The higher the karat value, the higher the purity of gold. Gold in its purest state is quite soft. It is often mixed with metals like copper, nickel, silver, or palladium to strengthen its composition and make jewellery. Before understanding what the key difference between 22K and 24K gold is, it is important to understand what 24K gold and 22K gold is.

What Is 24K Gold?

The measurement for gold purity is done on a scale from 0-24, where 24k gold is the purest you can buy. This means that it doesnt have any other metals mixed. It is usually used to make gold bars and coins. It is also referred to as 99.9 % pure gold. Whether it is 18K, 20K, or 22K vs 24K gold, the purity of all other gold karats is calculated as its percentage of 24. 24K gold is extremely yellow in colour and is not used to make jewellery. This gold karat is beautiful and has an alluring shine, but it is also quite soft, which is why it is not a very durable material.

Suggested Read: A Guide on How to Check Gold Purity

What Is 22K Gold?

22 Karat gold means that 22 parts are gold, and 2 parts are other metals such as silver, nickel, zinc, etc. It is also referred to as 91.67 % pure gold. In other words, karat can also be a measure of the ratio of gold to other metals. With the added alloys, the texture of the metal becomes harder, making 22K gold much more durable than 24K. This gold karat is often used to make jewellery. However, the karat is not very suitable for bigger jewellery sets, as it cannot support the heavy weight of the gemstones used in such pieces.

Difference Between 22K and 24K Gold

24K gold provides the highest purity and has a vibrant hue. But this gold karat is also softer, which makes it a good choice for investing. On the other hand, 22K gold balances purity with durability, which makes it better suited for everyday jewellery and ornaments. Now that we have understood what 22K vs 24K gold is all about, along with the basic difference between 24k gold and 22k gold, lets compare them in detail.

24K Gold

22K Gold

24K signifies 99.9% purity

22K is approximately 92% pure gold

Colour

A rich, bright, and intense yellow colour

Slightly less vivid colour due to the presence of alloys

Texture

Soft and pliable

Harder and less pliable than 24K gold

Durability

Less durable than 22K gold

More durable than 24K gold

Purpose

24K gold is delicate and less durable, which makes it suitable for investment purposes

As the presence of other metals makes 22K gold more durable, it is used widely to make jewellery

Utilities

Gold bars, coins, some medical equipment, etc.

Most commonly used for gold jewellery

Gold Price

24 carat gold price is more than 22K

22 carat gold price is less than 24K

Liquidity

Highly liquid and can be traded or sold globally with ease

Generally liquid but additional factors may influence its value beyond the gold content

Objective of Investment

For its intrinsic value and ease in trading or selling

Durability and dual purpose – as an investment and as jewellery

Gold Hallmarking

Gold hallmarking is an assurance of purity. The Bureau of Indian Standards (BIS) is the National Standards Body of India. BIS Hallmark helps to determine the guarantee of authenticity and purity of gold and silver jewellery sold across the country. It assures buyers that the gold and silver articles purchased by them adhere to the set standards of purity and genuineness.

24K Gold or 22K Gold - Which One Is Better?

The answer to this question depends upon the purpose for which you are buying the gold.

24-karat gold is ideal for investment purposes or portfolio diversification. Since it is the purest form of gold, it is quite soft and not suitable for making jewellery. Because of its purity, it is more valuable than 22k gold. You can buy BIS Hallmarked 24k gold bars and coins to get the maximum value of gold when you sell it.

22 karat gold, along with 20k and 18k gold, is ideal for jewellery purposes as it is stronger than 24k gold. The design and intricacy of the design are also important factors for choosing 22k, 20k, or 18k gold.

Conclusion

Gold is an evergreen asset class. Whether it is for investment, meeting financial needs, or enhancing ones aesthetics- this precious metal will never go out of style or favour. A few considerations while purchasing gold and clarity of the end purpose shall help you maximize the value of gold.