24K vs 22K vs 18K Gold: What's the Difference?
When you walk into a jewellery shop in India, you'll see prices for 24K, 22K, and 18K gold. The numbers refer to purity — but choosing the right karat depends on whether you're buying for investment, daily wear, or occasional use.
Understanding Karats: The Purity Scale
Karat (K) is the unit used to measure gold purity. Pure gold is 24 karats. Each karat represents 1/24th part gold. So:
| Karat | Purity | BIS Hallmark | Common Use |
|---|---|---|---|
| 24K | 99.9% pure | 999 | Coins, bars, investment |
| 22K | 91.6% pure | 916 | Jewellery (most common) |
| 18K | 75% pure | 750 | Designer/diamond jewellery |
| 14K | 58.3% pure | 585 | Export jewellery |
The remaining percentage is made up of other metals — usually silver, copper, or zinc — which add durability. Pure 24K gold is too soft for everyday jewellery; it bends and scratches easily.
24K Gold: Best for Investment
24K gold (999 purity) is the closest to pure gold you can buy. It's used for:
- Gold coins and bars sold by banks (SBI, HDFC) and jewellers
- RBI Sovereign Gold Bonds (SGBs) — referenced to 999 purity
- Gold ETFs — each unit backed by 24K gold
- Digital gold platforms like PhonePe Gold, Paytm Gold
Resale advantage: 24K coins and bars command the highest resale value because purity is guaranteed. Jewellery resale is messier — jewellers will deduct 10–30% for melting, impurities, and their margin.
Disadvantage: You cannot wear 24K gold daily — it's too soft and will deform quickly.
22K Gold: The Indian Standard for Jewellery
22K gold (916 hallmark) is the most widely sold jewellery gold in India. The 8.4% alloy content makes it hard enough for daily wear while retaining a rich golden colour.
Why Indians prefer 22K: Traditional jewellery like temple jewellery, bridal sets, and South Indian chain designs are almost exclusively 22K. The warm yellow colour is more vibrant than 18K.
Price vs 24K: 22K gold is always cheaper — exactly 91.6% of the 24K price (e.g., if 24K is ₹16,309/gram, 22K = ₹14,950/gram). Paying more than this ratio is a red flag.
Investment suitability: Reasonable for investment if you get good resale terms. However, making charges (₹150–₹800/gram) are a sunk cost that reduces investment returns. Better to invest in 24K coins or SGBs and buy 22K jewellery separately.
18K Gold: For Designer and Diamond Jewellery
18K gold (750 hallmark) is preferred for:
- Diamond-studded jewellery — the harder alloy holds prong settings better
- White gold and rose gold variants
- Western-style designer pieces
18K is 25% cheaper than 24K per gram in gold content. However, since you're buying primarily for the design/craftsmanship rather than gold value, it's less suitable as an investment. The making charges on 18K designer pieces can exceed the gold value itself.
BIS Hallmarking: How to Verify Purity
Since January 2021, BIS hallmarking is mandatory for all gold jewellery sold in India (except some exempted categories). Look for the 6-digit HUID (Hallmark Unique ID) code engraved on the jewellery.
You can verify the HUID number on the BIS Care app or website to confirm the jewellery's purity, the hallmarking centre, and the jeweller details. Always insist on a BIS hallmark certificate when buying.
Warning signs of fake hallmarks: Stamped marks without the BIS logo, no 6-digit HUID code, or jewellers who refuse to provide a bill are red flags. Unhalmarked gold is difficult to resell at fair value.
Which Should You Buy?
- For pure investment: Buy 24K coins/bars from a bank or trusted jeweller, or invest in SGBs (no GST, earns 2.5% annual interest on top of gold price appreciation)
- For daily wear jewellery: 22K is the best balance of durability and value retention
- For occasional/special occasion: 22K for traditional designs, 18K for diamond-studded modern pieces
- For gifting: 24K coins are the cleanest gift — universally accepted, easy to resell