Gold, often referred to as the “King of Metals,” gold holds a special place in Indian culture. Festivals like Dhanteras, Diwali, and Akshay Tritiya witness a surge in gold purchases as it is considered auspicious and a symbol of wealth and prosperity.
Historical price of gold in India
The below graph shows that the retail value of 24 karat per 10 grams gold has increased consistently in India. This make it an excellent hedge against inflation.
This is one of the primary reasons why Indians choose gold as their preferred form of investment above all else.
As festive season approaches, gold purchase is expected to go up but before you take the plunge and buy gold. let’s understand the various forms of purity that gold comes in and which one is better.
When buying gold, you may come across terms like ‘karat’ and ‘fineness’ that determine its purity. Gold is available in various purities, with 24Karat (24K) and 22Karat (22K) being the most common choices.
In particular, 24 Karat gold is highly sought after for its purity. However, not all 24 Karat gold is created equal. This blog aims to unravel the intricacies of gold purity by focusing on the difference between 995 and 999 fineness.
First let’s understand the difference between the main two purities of gold that is common in India.
What Is 24Karat Gold?
24Karat gold is often referred to as pure gold. It is composed of 99.9% gold and is considered the highest level of purity in the gold market. This means it contains no other metals or alloys, making it incredibly soft and malleable. Due to its softness, 24Karat gold is typically not used for making jewelry because it can easily bend or scratch. Instead, it is often used for investment purposes, such as buying gold coins or bars.
What Is 22Karat Gold?
22Karat gold is an alloy made by mixing 91.67% gold with other metals like copper, silver, or zinc. This alloying process gives 22K gold increased durability and strength compared to 24K gold. As a result, 22Karat gold is the preferred choice for crafting intricate jewelry pieces. Its vibrant yellow color and durability make it ideal for creating beautiful ornaments that can be worn daily.
The Key Differences
- Purity: The most significant difference between 24Karat and 22Karat gold is purity. 24K gold is nearly 100% pure, while 22K gold is a blend of 91.67% gold and other metals.
- Durability: 22K gold is more durable and suitable for jewelry due to the addition of alloying metals. 24K gold is soft and not recommended for daily-wear jewelry.
- Color: 22K gold has a rich, vibrant yellow color, while 24K gold has a slightly pale yellow hue due to its purity.
- Value: 24K gold is typically more expensive per gram compared to 22K gold due to its higher purity.
What is Gold Fineness
While karat provides a general overview of gold purity, ‘fineness’ takes precision to the next level. Fineness quantifies purity as a fraction of 1. For example, 995 fineness gold implies that you have 995 parts of pure gold and 5 parts of another metal in every 1,000 grams. In contrast, 999 fineness gold offers 999 parts of pure gold and just 1 part of another metal.
Understanding 995 vs. 999 Fineness
24 Karat gold is highly sought after for its purity. However, not all 24 Karat gold is created equal. 24Karat gold is categorised in two different types of fineness: 995 and 999 fineness.
The critical distinction between these two fineness levels lies in the minutiae. Both are classified as 24 Karat gold, but the higher the fineness, the closer you get to pure gold.
In essence, 999 fineness gold represents the pinnacle of purity, with an almost negligible presence of other metals. This level of purity is favored by investors who prioritize the intrinsic value of gold.
995, 999, and 999.9 purity levels are an international nomenclature used to define the purity of gold per 1,000 grams.
- 995 Fineness: This indicates that you get 995 grams of pure gold with 5 grams of another metal in the mix.
- 999 Fineness: At this level, you receive 999 grams of pure gold and just 1 gram of another metal.
- 999.9 Fineness: The highest purity level, offering an astonishing 999.9 grams of pure gold, with only 0.1 gram of another metal present.
Making Informed Choices
Understanding the nuances of gold purity is crucial, especially when making significant investments during festivals like Diwali. If you seek the purest form of 24 Karat gold, 999.9 fineness is your ultimate choice. It represents the zenith of purity and craftsmanship, making it highly desirable among discerning buyers.
In conclusion, while all these variants are referred to as 24 Karat gold, the distinction between 995 and 999 fineness offers a deeper appreciation of the gold you purchase. So, as you embark on your Diwali gold-buying journey, remember that it’s not just about the karat; it’s about getting as close as possible to the pure essence of gold, adding an extra layer of value and wisdom to your festive purchases.
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