The karat number tells you how much of a piece is pure gold. It is the first thing to check when you compare two gold prices, because a rate for 24K and a rate for 22K are not rates for the same thing.
What karat means
Karat is a scale out of 24. Pure gold is 24 karat, and every karat below that means less gold and more of other metals such as copper or silver.
| Karat | Gold content | Common use |
|---|---|---|
| 24K | 99.9% | Coins and bars |
| 22K | 91.6% | Most Indian jewellery |
| 18K | 75% | Diamond and stone-set jewellery |
| 14K | 58.5% | Lighter, lower-cost jewellery |
Why most jewellery is not 24K
Pure gold is soft. A 24K bangle would bend and scratch in everyday wear, and a stone set in it would not stay secure. Mixing in other metals makes gold harder. That is why 22K is the usual choice for Indian jewellery, and 18K is often used when stones need a firm setting.
The other metals are not a trick by the jeweller, but you should not pay a 24K rate for a piece that is 22K.
How to convert between rates
You can work out a fair gold value at any purity from the 24K rate:
Value per gram = 24K rate per gram x (karat / 24)
As a worked example with round numbers, suppose 24K gold is Rs 10,000 per gram. Then:
- 22K is about 10,000 x 22 / 24 = Rs 9,167 per gram
- 18K is 10,000 x 18 / 24 = Rs 7,500 per gram
These numbers only show the method. Published 22K rates can differ a little from this sum, because market associations and shops set their own rates.
How to check the purity on a piece
Hallmarking is run by the Bureau of Indian Standards (BIS). A hallmarked gold item carries:
- The BIS logo
- The purity mark, such as 22K916 or 18K750
- A six-character alphanumeric code called the HUID
You can check a HUID in the BIS CARE app, which shows details recorded for that item. Check the code before you buy, and make sure the purity on the bill matches the mark on the piece.
What this means when you compare prices
Before comparing two quotes, make sure both are for the same karat and the same weight. Then compare making charges and tax separately. Our gold jewellery price calculator puts all of this together, and the gold price page shows the latest benchmark rates with their date and source.