If you are new to gold investing, you will quickly come across terms like 24k, 22k, and 18k. These numbers refer to the purity of gold, and understanding them helps you make better decisions when buying coins, bars, or jewellery. The higher the number, the purer the gold, but that does not always mean it is the best choice for every purpose.
What Does “Karat” Mean?
The “k” or “karat” rating measures how much pure gold is in an item compared to other metals. Gold on its own is soft, so it is often mixed with small amounts of other metals like copper or silver to make it more durable.
- 24k gold – Pure gold, or very close to it (99.9% purity).
- 22k gold – 91.6% pure, with the rest made up of other metals.
- 18k gold – 75% pure, mixed with a larger share of other metals.
24k Gold
This is the purest form of gold available.
- Purity: 99.9%
- Colour: Rich, bright yellow
- Use: Bullion bars, Britannia coins, Maple Leafs, and most modern investment coins
- Pros: Highest gold content, globally recognised, easy to sell
- Cons: Softer and more prone to scratches, less common in jewellery
For investors, 24k is usually the standard because you are paying for pure gold without extra alloys.
22k Gold
A mix of gold with small amounts of copper or silver.
- Purity: 91.6%
- Colour: Slightly less yellow than 24k, often more durable
- Use: Coins like the Sovereign and Krugerrand
- Pros: Stronger than 24k, still holds high gold value
- Cons: Contains a small amount of other metals
Many famous bullion coins, including the UK Sovereign, are 22k. They are still classed as investment gold, and their long history makes them widely recognised.
18k Gold
A bigger mix of gold with other metals.
- Purity: 75%
- Colour: Slightly paler, depending on the alloy
- Use: Jewellery, less common for investment
- Pros: Very durable, less likely to scratch or bend
- Cons: Lower gold content, not typically used for bullion coins or bars
18k is more for jewellery buyers than investors. It looks attractive and is hard-wearing, but it does not offer the same value for weight as 22k or 24k gold.
Which Purity Is Best for Investors?
- 24k is best for bullion bars and modern coins, giving you the highest purity and easiest resale.
- 22k is also excellent for investment, especially for traditional coins like Sovereigns and Krugerrands.
- 18k is mainly for jewellery, not serious investing.
FAQs About Gold Purity
Is 24k gold always better?
For investment, yes, because you are buying pure gold. For jewellery, 22k or 18k may be more practical.
Why are Sovereigns 22k, not 24k?
Tradition. Sovereigns have always been struck in 22k, and their durability makes them suitable for circulation as well as investment.
Does purity affect resale value?
Yes. Higher purity usually sells at higher prices, but well-known 22k coins like Sovereigns and Krugerrands remain highly liquid.
Can I invest in 18k gold?
You can, but it is less efficient. Most investors prefer 22k or 24k coins and bars.
Final Thoughts
Understanding gold purity helps you choose the right products for your goals. If you are investing, focus on 22k or 24k coins and bars, as these hold their value best. 18k gold is better suited to jewellery. By knowing what the karat system means, you can avoid confusion and make smarter choices when buying gold in the UK.
Leave a Reply