Understanding the Per Gram Gold Rate is important when comparing different types of gold. The rate can vary significantly between 24K, 22K, 18K and 14K gold because each type contains a different percentage of pure gold. The higher the purity, the higher the underlying value of the gold per gram.
While the gold rate is an important factor, the final price of jewellery can also include making charges, GST, wastage, design charges and other applicable costs.
What Does Gold Karat Mean?
The term karat refers to the purity of gold. 24K gold represents approximately 99.9% pure gold. Other metals such as silver, copper, zinc and palladium may be added to gold to create alloys that are stronger and more suitable for jewellery.
As more alloy metals are added, the karat value decreases. Here is a simple comparison:
| Gold Purity | Approximate Pure Gold Content |
|---|---|
| 24K | 99.9% |
| 22K | 91.6% |
| 18K | 75% |
| 14K | 58.5% |
Since the amount of pure gold differs across these categories, the underlying per-gram value of each type of gold also differs.
24K Gold Per Gram Rate
24K gold is the purest form of gold commonly traded, with approximately 99.9% purity. Gold bars, coins and many investment products are commonly made using 24K gold.
However, 24K gold is relatively soft compared with lower-karat gold, making it less suitable for jewellery that needs to withstand regular wear and physical activity.
22K Gold Per Gram Rate
22K gold contains approximately 91.6% pure gold. Because it contains less pure gold than 24K, its underlying gold value per gram is lower than 24K gold.
22K gold is extremely popular among Indian jewellery buyers because it offers a good balance between purity and durability. Many traditional Indian gold jewellery designs are made using 22K gold.
18K Gold Per Gram Rate
18K gold contains approximately 75% pure gold and around 25% other metals. Because it contains less pure gold than 22K and 24K gold, its underlying value per gram is lower.
The additional metals make 18K gold relatively harder, making it suitable for diamond jewellery, contemporary jewellery designs and lightweight jewellery.
14K Gold Per Gram Rate
14K gold contains approximately 58.5% pure gold, with the remaining percentage consisting primarily of other metals. Since the pure gold content is lower than 18K, 22K and 24K gold, its underlying gold value per gram is also lower.
The higher proportion of alloy metals makes 14K gold harder and suitable for everyday jewellery and designs that require greater durability.
Why Are the Rates Different?
The simplest way to understand why the gold rate differs is to look at the amount of pure gold contained in each karat category.
If we know the rate of 24K gold, we can estimate the underlying value of lower-karat gold based on its approximate purity.
1 gm of 22K gold ≈ 1 gm of 24K gold × 91.6%
1 gm of 18K gold ≈ 1 gm of 24K gold × 75%
1 gm of 14K gold ≈ 1 gm of 24K gold × 58.5%
For example, if the underlying 24K gold rate is ₹10,000 per gram, the approximate pure-gold component would be ₹9,160 for 22K, ₹7,500 for 18K and ₹5,850 for 14K, before considering jewellery-specific charges.
However, the actual selling price of jewellery can differ because of making charges, GST, wastage, design charges and other applicable costs.
Understanding the Per Gram Gold Rate
When comparing the Per Gram Gold Rate across 24K, 22K, 18K and 14K gold, always consider purity first. The quoted rate may represent only the underlying gold value and may not include jewellery-making and other charges.
Which Form of Gold Should I Choose?
The right type of gold depends on your purpose, budget and how you plan to use it.
| Gold Type | Purity | Common Use |
|---|---|---|
| 24K | 99.9% | Investment, bars and coins |
| 22K | 91.6% | Traditional gold jewellery |
| 18K | 75% | Diamond and contemporary jewellery |
| 14K | 58.5% | Durable everyday jewellery |
If you are purchasing gold primarily as an investment, 24K gold may be suitable. For traditional jewellery, 22K gold is a popular choice, while 18K and 14K can be considered for contemporary and everyday-wear jewellery.
What Should You Check Before Buying Gold?
- Check the gold purity and karat value.
- Look for the BIS hallmark where applicable.
- Ask for a clear breakdown of the gold rate.
- Check the applicable making charges.
- Understand wastage and other charges.
- Check the applicable GST.
Before buying gold, make sure you understand the pricing breakdown and verify the purity and hallmark information.
Final Takeaway
The difference between 24K, 22K, 18K and 14K gold primarily comes down to their pure gold content. Higher-karat gold generally has a higher underlying value per gram, while lower-karat gold contains more alloy metals that provide additional hardness and durability.
At Akshra Gold, we believe informed customers can make better gold-buying decisions. Understanding purity, the Per Gram Gold Rate, making charges and other applicable costs can help you choose the right type of gold based on your needs and budget.