I am looking to invest in physical gold. Which one do i buy 22k or 24K?
Pure gold is 24 karats and each unit karat of gold is equal to 1/24 part (4.1667%). Depending on the dilution gold is classified as 24 karat, 22 Karats etc. Different countries have adopted different benchmark indicating the purity of gold. In India for example 22K gold variety is more popular so you are better off purchasing 22K gold.
We measure the purity of gold in karats. 24 karat gold is 99.9% pure while 22 karat gold is 92% pure. Every gold karat is equivalent to 4.2% pure gold, which in essence means that 14 and 18 karat gold contains only 58.33% and 75% pure gold respectively. Although 24 karat gold seems like the better pick as far as making jewellery is concerned, it isn’t actually suited for this purpose. Shocked? Next time your favourite jeweller makes false claims about using only 24 karat gold when making jewellery, you can always question them.
Since 24 karat gold can’t really be used to make jewellery, jewellers tend to use 14, 18 or 22 karat gold. Whenever you plan on buying gold jewellery, you need to check its purity. That’s why you have Hallmark to protect you from instances of fraud. Hallmark indicates that the gold you’ve bought is pure. Therefore, it is advisable to purchase hallmarked jewellery since it is tested by competent agencies. If you want to invest in physical gold, it is best to go in for gold coins and bars. These have a better resale value than gold jewellery. This is because you pay a lot in wastage and making charges which aren’t included when you sell the jewellery. You can get hallmarked gold coins and bars. To check gold rates, click here - https://www.bankbazaar.com/gold-rate-india.html.