The Difference Between 18-Carat, 22-Carat, and 24-Carat Gold

Although gold may look the same at first glance, the quality of gold in different coins or bars can vary significantly. This article explains the differences between 18-carat, 22-carat, and 24-carat gold.
 
To start, it is important to clarify that there is a difference in the carat rating of gold in a coin or bar. The gold content of a coin or bar is expressed as a percentage. Below, you’ll find the composition of 18-carat, 22-carat, and 24-carat gold:
 

 
Among coin collectors, coins made from 24-carat gold are the most popular, but 22-carat gold coins are also highly sought after. For example, the gold American Eagle coins are made from 22-carat gold and are very popular among collectors. The advantage of 22-carat gold coins is that they are more durable than 24-carat gold coins due to their copper content. Among investors, the gold Krugerrand coins, minted in 22-carat gold, are particularly popular.
 
For gold coins, the general rule is that the higher the percentage of gold, the higher the price. Therefore, 24-carat gold coins are typically more expensive than 22-carat gold coins.
In the jewelry market, the purity of jewelry is also measured in carats. The reason coins and bars are much more popular for investment than jewelry is that the carat rating and gold content of coins and bars are easier to determine than those of jewelry. Additionally, the price of coins and bars is closer to the spot price of gold compared to jewelry. Furthermore, the pricing of gold coins or bars is more objective and consistent than that of jewelry. For jewelry, factors such as current fashion trends and the history of the piece also influence the price.
 
Disclaimer: The Silver Mountain does not provide investment advice, and this article should not be considered as such. Past performance is no guarantee of future results.