Check the gold rate today and you will see two headline numbers: 24K and 22K, with 24K roughly 9% higher. The obvious conclusion is that 24K is the better buy. For jewellery, it is usually the wrong one.
What the numbers mean
Karat measures how much of the metal is actually gold, out of 24 parts.
- 24K is 999 fine — 99.9% gold. Hallmarked 999.
- 22K is 916 fine — 91.6% gold, the rest copper and silver. Hallmarked 916.
- 18K is 750 fine — 75% gold. Hallmarked 750.
Because 22K is 91.6% gold, its rate works out to about 91.6% of the 24K rate. If 24K is 1,52,000 per 10 grams, 22K lands near 1,39,000. That is arithmetic, not a discount.
Why jewellery is not made from 24K
Pure gold is soft. A 24K chain bends out of shape in a pocket, a 24K ring loses its round within months, and a 24K setting will not hold a stone — it flexes and the stone drops out. Alloying with copper and silver makes the metal hard enough to be worn, worked and soldered. That is the entire reason 22K exists and the reason it is the Indian jewellery standard.
So what is 24K for?
Coins, bars and investment gold, where nothing needs to hold a shape. If you are buying gold to store value rather than to wear, 24K is the right form: you pay minimal making charges, and you get the fine rate back when you sell.
And 18K?
Diamond and stone-set jewellery, and anything with fine detail. At 75% gold it is harder still, which is exactly what you want gripping a diamond. It is also noticeably cheaper per gram, which is why an 18K stone-set piece can look more substantial than a 22K one at the same price. The trade-off is resale: 18K returns less, because there is less gold in it.
The buying rule
| If you want to | Buy |
|---|---|
| Store value, sell later | 24K coins or bars |
| Wear it daily, keep resale strong | 22K |
| Set diamonds or fine stones | 18K |
The part that decides the real cost
Purity sets the metal price, but making charges decide what you actually pay — and they are recovered from nobody when you sell. A 22K piece with 25% making can cost more than a 24K coin of the same weight and be worth less on the day you resell it. Compare the finished price, not the karat.
Check the stamp, not the word
Whatever you are told at the counter, the piece should carry a BIS hallmark with 916, 750 or 999 and a six-character HUID. Here is how to read and verify it — it takes about a minute, and it is the only thing that makes the purity on your bill enforceable.