When it comes to choosing the right gold for you, it’s important to understand the differences between 24-carat and 18-carat gold. From purity and durability to price and uses, each type has its advantages and drawbacks.
Whether you're investing in gold bars or buying jewellery, understanding the differences between these two gold grades is essential. So let’s break it down to help you make an informed decision based on your priorities!
What are carats?
Let's explore the concept of gold fineness, otherwise known as gold purity.
The carat (ct) system is used to measure the fineness of gold. It indicates how many parts of gold are present out of 24 total parts. Pure gold is 24 carats (24ct), meaning it's 99.9% gold, with no other metals mixed in.
Lower carat levels, such as 18ct, mean the gold is alloyed with other metals, like silver or copper, making it less pure but more durable. For example, 18ct gold is 75% pure, while 14ct is 58.5% pure. The higher the carat, the higher the gold content:
- 1-carat gold contains 1/24 parts (4.2%) pure gold
- 18-carat gold contains 18/24 parts (75%) pure gold
- 24-carat gold contains 24/24 parts (99.99%) pure gold
Carat scale overview
The carat scale measures gold purity in 1/24 steps, known as grades. 24-carat gold represents the highest purity level.
- 24 carats: 99.99% pure gold
- 22 carats: 91.7% pure gold
- 21 carats: 87.5% pure gold
- 18 carats: 75.0% pure gold
- 14 carats: 58.5% pure gold
- 9 carats: 37.5% pure gold
- 8 carats: 33.3% pure gold
How gold carat impacts colour: Understanding purity and alloy influence
The colour of gold varies depending on its carat and the metals alloyed with it:
⭐ 24-carat gold: Pure gold with a bright yellow hue, as no other metals are mixed.
⭐ 18-carat gold: Contains 75% gold and is available in various colours depending on the alloys:
⭐ Yellow gold (mixed with copper and silver)
⭐ Rose gold (more copper, giving a pinkish tint)
⭐ White gold (mixed with palladium, silver, or nickel for a white finish)
Lower carat gold, like 9ct, often appears less vibrant and more muted in tone.
Common uses for different gold carats
Different carats of gold have specific uses based on their purity and durability:
⭐ 24-carat gold (99.9% pure): Soft and malleable, used primarily for investment purposes, such as gold bars and coins.
⭐ 22-carat gold: Used for high-end jewellery in some cultures, maintaining a bright yellow hue with better durability than 24-carat.
⭐ 18-carat gold (75% pure): Popular for fine jewellery, offering a balance of purity, durability, and colour variations depending on alloys (yellow, rose, or white).
⭐ 9-carat gold: Less pure, more durable, and often used for everyday jewellery.
Generally, 24-carat gold is considered too soft for most types of jewellery. Because it's made of nearly pure gold, it is malleable and prone to scratches and bending. This softness makes it unsuitable for everyday wear, especially for pieces like rings and bracelets that may get knocked during wear. Jewellers often opt for 18-carat or lower-carat gold for jewellery, as these alloys are mixed with other metals – adding strength and durability while retaining a luxurious appearance.
What counts as investment-grade gold?
For gold to be considered investment-grade and enjoy tax advantages in the EU, it must meet certain purity requirements:
- Gold bars must have at least 995 thousandths fineness.
- Gold coins must have a minimum fineness of 900 thousandths and must have been minted after 1800.
Popular investment-grade gold coins
Popular investment-grade gold coins are highly sought after by investors due to their recognised value, global liquidity, and purity. Some of the most well-known investment-grade gold coins include:
- Krugerrand (South Africa, fineness: 22 carats/91.67% pure gold)
- Maple Leaf (Canada, fineness: 24 carats/99.99% pure gold)
- Vienna Philharmonic(Austria, fineness: 24 carats/99.99% pure gold)
- American Gold Eagle (USA, fineness: 22 carats/91.67% pure gold)
- British Sovereign (United Kingdom, fineness: 24 carats/99.99% pure gold as of 2013)
Popular investment-grade gold bars
- PAMP Suisse gold bars (24 carats/99.99% pure gold)
- Argor-Heraeus gold bars (24 carats/99.99% pure gold)
- Perth Mint gold bars (24 carats/99.99% pure gold)
- Valcambi gold bars (24 carats/99.99% pure gold)
- Credit Suisse gold bars (24 carats/99.99% pure gold)
Gold prices: 24-carat vs 18-carat – which offers better value?
Put simply, the price differences between different carats of gold are significant due to their varying gold content. 24-carat gold, being pure gold, is the most expensive because of its high gold content and rarity, making it ideal for investments.
On the other hand, 18-carat gold is more affordable since it contains 75% gold mixed with other metals, providing increased strength and durability, which makes it popular for fine jewellery. The lower gold content in 18-carat also lowers its price compared to 24-carat gold.
How to choose between 24-carat and 18-carat gold
When choosing between 24-carat and 18-carat gold, you should consider the following factors:
💵 Budget: 24-carat gold is more expensive due to its higher purity, while 18-carat gold is more affordable.
🪙 Usage: 24-carat is ideal for investment, but its softness makes it less suitable for daily wear. 18-carat gold, being mixed with other metals, is more durable and great for fine jewellery.
💍 Durability: 18-carat gold is stronger and more resistant to scratches, making it a better choice for jewellery worn regularly.
Conclusion: Key things to remember about carats
⭐ Carat measures purity: 24-carat gold is pure gold, while 18-carat contains 75% gold and 25% other metals.
⭐ Higher carat = softer gold: 24-carat gold is softer, while 18-carat gold is more durable for jewellery.
⭐ Investment-grade: 24-carat is often preferred for investment due to its higher purity.
⭐ Price difference: 24-carat gold is more expensive, but 18-carat offers a balance of affordability and strength.
Explore your gold investment options at GOLD AVENUE.
