Gold Purity 101: Understanding 24K, 22K, and Investment-Grade Gold

Understanding Gold Purity Standards

Gold purity determines the actual gold content in bars, coins, or jewelry. Pure gold is too soft for most applications, so it's often alloyed with other metals. Understanding purity measurements helps investors ensure they're getting what they pay for.

The Karat System

The karat (K or kt) system divides gold into 24 parts. 24K gold is pure gold (99.9%+), while 18K contains 18 parts gold and 6 parts other metals (75% gold). 22K contains 91.67% gold, 14K contains 58.3% gold, and 10K contains 41.67% gold.

Investment-Grade Gold: 999.9 Purity

Investment-grade gold refers to bars and coins with 99.99% purity (also written as .9999 or 999.9). This standard ensures maximum gold content and universal acceptance. In Singapore, Investment Precious Metals (IPM) must meet minimum 99.5% purity to qualify for GST exemption.

Why 24K for Investment?

Serious investors prefer 24K gold bars because: higher gold content per gram, easier to value (less calculation for alloy content), better liquidity globally, and qualifies for tax advantages. Lower purity gold (22K, 18K) is primarily for jewelry where durability matters more than pure gold content.

Hallmarking and Verification

Legitimate investment gold displays purity stamps: "999.9" or "24K" marking, refiner's hallmark, weight specification, and unique serial number. Advanced verification includes X-ray fluorescence testing, ultrasonic testing, and specific gravity measurements.

Conclusion

For investment purposes, always choose 24K gold with 99.99% purity from recognized refiners. This ensures maximum value, liquidity, and tax efficiency. Lower purity gold serves jewelry purposes but compromises investment-grade quality.