The Difference in Gold Karats: 14K vs. 18K vs. 22K vs. 24K
The simplest explanation of the karat system is that it indicates the amount of pure precious metal within gold pieces. Gold purity directly impacts not just the value and cost of gold items but also how suitable a piece of gold jewelry is for everyday wear.
- 14K gold vs. 18K gold vs. 22K gold vs. 24K gold
- Which weight holds the most value for a good investment
- Which karat weight is best for daily wear
We will also explore the distinction between gold karats and the carat system used for diamonds.
In a nutshell:
The purest form of gold is 24K, most commonly found in gold bullion, and is the most popular for investment purposes. As the karat number drops, so does the percentage of pure gold in a piece of jewelry. Metals are added to create a more durable alloy for everyday wear, and sometimes to alter the color of the gold, as in rose or white gold. It is always wise to consider insuring your gold to protect your investment.
Difference in Gold Karats
A 0 to 24 scale measures gold karats, where the number indicates the percentage of pure gold in relation to 24 parts. The higher the number, the purer the gold. So 24 karat gold means all 24 parts are gold with no other metals mixed in — in other words, 100% pure gold.
However, many jewelry makers blend pure gold with other metals. White metals, such as silver or palladium, are used to create white gold, while copper is used to produce rose gold. When pure gold combines with other metals, it’s called a gold alloy.
In these cases, the percentage of pure gold in the jewelry directly determines its karat value. For example, if a piece is 75% pure gold, but 25% alloy metals, it would be considered 18k gold. To do the math, 75% of 24 (the value of pure gold) is 18.
Along these same lines:
- 24K gold is 100% pure gold (24/24)
- 22K gold is 91.6% pure gold (22/24)
- 18K gold is 75% pure gold (18/24)
- 14K gold is 58.3% pure gold (14/24)
- 10K gold is 41.7% pure gold (10/24)
When it comes to which karat gold is best to purchase, that will depend on its intended purpose.
What Is the Best Karat Gold for Investing?
If someone is solely buying gold as an investment, 24-karat gold is the preferred option. That’s because, alongside weight, gold purity has the most significant impact on the investment value. Design also matters to a lesser degree if you’re purchasing a piece of gold jewelry as an investment. Otherwise, this does not apply if you’re focusing on gold bars or commemorative coins. As it stands, most investment-grade gold bars are composed of 24-karat gold.
Which Gold Karat Pays the Most?
When selling gold, 24K is generally worth the most money. The higher price is due to its pure gold content, which directly correlates to its cash value. Here’s how to calculate a piece’s melt value, also known as its cash value, based on its purity.
How gold pricing works
Gold prices fluctuate in response to various factors, including supply and demand. Organizations such as the London Bullion Market Association set benchmark pricing based on these factors.
A dollar-per-troy-ounce rate sets the price of gold. A troy ounce is slightly larger than a traditional ounce, equivalent to about 31 grams.
Ready to sell your gold?
Request a free Alloy Appraisal Kit, ship from home, and receive a same-day offer after appraisal.
Ready to sell your gold?
Request a free Alloy Appraisal Kit, ship from home, and receive a same-day offer after appraisal.
Current gold prices are hovering around $3,600 per troy ounce. But even if a piece of gold jewelry weighs 0.25 troy ounces, that doesn’t mean a seller will receive its full value in cash.
Instead, gold buyers often base cash offers on melt value. They will look at the value of the actual materials within a piece. The purity percentage, weight, and current gold prices work together to determine the melt value of gold. Thus, the greater the gold content in a piece, the greater its melt value.
Determining gold’s melt (or cash) value
1. Determine the gold’s purity.
If someone has an 18K gold ring and wants to sell it as an investment piece, the first step is knowing its purity. In this case, 18K gold is 75% pure gold, as it contains 18 parts out of 24 that are pure gold.
2. Factor in the gold’s weight.
Next, weigh the gold in troy ounces. Let’s say, for this example, that the gold ring weighs 0.20 troy ounces.
3. Look at the current gold price, per troy ounce.
Online, on sites like Business Insider, the price is listed per troy ounce. As of the time of this press, the price is $3,600.
4. Multiply all three figures to determine the estimated cash value.
Multiply the weight (0.20) by the purity (0.75) by the price per troy ounce ($3,600). In this instance, that figure would be $540. As such, one could expect to get $540 for this particular gold ring.
What Is the Best Karat Gold for Everyday Wear?
The best karat gold for everyday wear, such as engagement rings or wedding bands, is typically 14K or 18K gold. While some might assume 24K gold is the best, it’s actually more malleable and soft, making it more likely to scratch or ding over the course of daily wear. Because of this risk, lower-purity gold is more desirable for jewelry.
Yes, this lower purity means someone might not receive the same value (compared to a 24K piece) when selling it later. However, the added durability will ensure someone can wear the jewelry every day for years to come without worrying about excessive damage.
There are other benefits to buying jewelry pieces made with 14K or 18K gold versus 24K gold.
For example:
- Less pure gold is more affordable gold.
- The addition of another precious metal within the alloy provides more color options beyond the classic yellow gold, including rose gold and white gold.
Things to keep in mind when choosing a lower karat gold
When choosing a type of gold for jewelry, keep in mind two important factors:
- Jewelry that will experience the most contact or wear and tear, such as rings or bracelets, should be made of gold with the lowest purity. However, items like earrings, which don’t take as much abuse, may still be suitable for a high karat gold alloy, such as 18K gold.
- Some gold alloys, particularly those that incorporate nickel or copper, may irritate sensitive skin. However, the higher the karat, the less likely this interaction will occur.
Gold Karats vs. Diamond Carats
It’s not just the spelling that is different. While gold karats measure the percentage of a piece that is considered pure gold, diamond carats measure the weight of a diamond. A diamond carat is the equivalent of 0.2 grams or 200 milligrams.
Regardless of carat vs. karat, diamonds in general cost more than gold. However, many consider gold a better investment as it’s easier to sell and holds long-term value. Not to mention, the gold market remains relatively stable.
Why You Should Protect Gold Jewelry, Regardless of Karat
Whether someone is purchasing gold jewelry as an investment or looking to buy a piece of high-end, high-karat jewelry, it’s essential to protect those items. Doing so ensures they retain their value in the long term. Comprehensive jewelry insurance from a company like BriteCo makes this easy. Individuals can fully repair or replace their gold jewelry if it’s lost, stolen, or damaged.
A piece of gold jewelry purchased with no real sentimental value, that someone may sell in the future, can benefit from a BriteCo policy. Worldwide coverage starts at $5/ month with zero deductibles; it’s one of the smartest ways to protect an investment.
How to Appraise and Sell Gold with The Alloy Market
If you’ve calculated your gold’s value and decided that now is the time to sell your piece, The Alloy Market can help.
Claim your free Alloy Appraisal Kit and wait for it to arrive via USPS within five business days. Then, pack up your items and ship them to us in the provided, pre-paid, fully insured parcel. We’ll evaluate your item and make you an offer. If you accept, we’ll initiate payment the same day.
