What Are Gold Karats and How Do They Affect Its Price?
Gold is one of the most precious metals used in jewelry and investment. But we often hear terms like “24K” or “21K” without fully understanding what they mean. So, what are gold karats, and how do they affect the price and value of gold? In this article, we’ll explain everything you need to know about gold karats and their importance.
A gold karat represents the purity of gold in a piece of jewelry or bullion, measured out of 24 parts.
The higher the karat, the higher the percentage of pure gold in the mixture.
| Karat | Pure Gold Percentage | Other Metals |
|---|---|---|
| 24K | 99.9% | 0.1% |
| 22K | 91.6% | 8.4% |
| 21K | 87.5% | 12.5% |
| 18K | 75.0% | 25.0% |
| 14K | 58.5% | 41.5% |
| 12K | 50.0% | 50.0% |
How Do Karats Affect Gold Price?
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The higher the gold content (karat), the higher the price
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For example: A 10g 24K item is more expensive than a 10g 18K item.
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Manufacturing cost (making charges) may vary by karat
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Lower karat items may have higher craftsmanship costs due to design complexity.
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Karat impacts the weight of pure gold in the item
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A 5g 18K item contains only 3.75g of pure gold (75%).
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Which Karat Should You Choose?
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For investment: Go for 24K or 22K.
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For jewelry: Choose 21K or 18K, depending on your style and budget.
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For durability and a modern look: 18K is a solid choice.
Conclusion
Gold karat is a measure of purity that directly affects its price, durability, and appearance.
Each karat type has its own ideal use — whether for saving, gifting, or fashion.
Understanding gold karats helps you make smart and informed buying decisions.
