Gold Purity Guide

24 karat gold is the purest form of gold available, with 99.9% gold content (999 fineness). It has a rich yellow colour and is too soft for jewellery, making it ideal for investment in the form of gold bars, coins, and digital gold. MCX gold futures trade in 995 fineness — the standard for institutional delivery in India.

The 999 vs 995 price difference is marginal — about 0.4%. Most refineries produce both grades. When buying gold bars for investment, you'll typically get 995 fineness from bank branches and 999 fineness from MMTC-PAMP and similar LBMA-accredited refiners.

24K gold is not recommended for everyday jewellery as it scratches and bends easily. However, certain traditional South Indian jewellery styles (like temple jewellery) use 23K-24K gold for its rich colour and cultural significance.

22 karat gold (916 fineness) contains 91.6% pure gold and 8.4% alloy metals — typically copper, silver, or zinc. This is the most popular purity for gold jewellery in India. The term "916" is stamped on every BIS-hallmarked piece and is the number most Indian consumers look for when buying jewellery.

The making charge on 22K jewellery typically ranges from 8% to 25% over the gold rate, depending on the design complexity and the jeweller. Machine-made pieces have lower making charges (8-12%) compared to handcrafted designs (15-25%).

When comparing 22K gold prices across jewellers, always ask for the gold rate per gram excluding GST and making charges. The base gold rate should be close to the MCX-derived 916 rate — any significant premium may indicate inflated pricing.

18 karat gold (750 fineness) contains 75% gold and 25% alloy. It is significantly harder than 22K gold, making it the preferred choice for diamond-studded jewellery, watches, and modern designer pieces. International brands like Cartier, Tiffany, and Tanishq's premium lines predominantly use 18K gold.

18K gold is available in multiple colour variants — yellow gold (copper-silver alloy), white gold (palladium or nickel alloy), and rose gold (higher copper content). The gold content remains 75% regardless of colour; only the alloy mix changes.

The primary difference is purity: 24K is 99.9% gold, 22K is 91.6%, and 18K is 75%. Higher purity means richer colour and higher value per gram, but lower durability. 24K gold is too soft for daily-wear jewellery; 22K offers the best balance of purity and wearability for Indian jewellery; 18K is the strongest and best suited for stone-setting and intricate modern designs.

From an investment perspective, 24K gold has the highest resale value as its purity is guaranteed. 22K jewellery loses value at resale due to making charges and wastage deductions. For pure investment, gold ETFs, sovereign gold bonds (SGBs), or 24K gold coins are more cost-effective than jewellery.

For investment, 24K gold is the clear winner. It offers the highest purity, standardised pricing (benchmarked to MCX and LBMA), and no making-charge losses. Investment options include gold ETFs (traded on NSE/BSE), sovereign gold bonds (with 2.5% annual interest), MMTC-PAMP gold bars, and digital gold platforms.

22K gold jewellery is not ideal for investment because you pay 8-25% making charges upfront, and jewellers typically deduct 5-10% as wastage when buying back. The effective loss at the time of sale can be 15-30% — far more than the returns from gold price appreciation.

If you want physical gold, buy 24K gold coins or bars from banks or LBMA-accredited refiners. They carry lower premiums (2-5%) and are easier to sell back at near-market rates anywhere in India.

Since June 2021, BIS hallmarking is mandatory for gold jewellery sold in India. Every hallmarked piece carries a HUID (Hallmark Unique ID) — a 6-digit alphanumeric code that can be verified on the BIS Care app or website. The hallmark stamp includes the BIS logo, purity grade (e.g. 916 for 22K), and the HUID number.

When buying gold jewellery, always ask to see the HUID on the piece and verify it digitally. This protects you from under-karating — a practice where jewellers sell lower-purity gold at higher-purity prices. If a jeweller refuses to provide HUID-stamped jewellery, consider it a red flag and buy elsewhere.