What is 24 Karat Gold and Why is it Expensive?

Jakarta, Pintu News – 24-karat gold is the gold standard in the precious metals world and is often a leading indicator of global economic health. Technically, the term “karat” is used to measure the level of purity of gold in a unit, where the number 24 indicates that the metal is pure with no mixture of other metals. In 2026, interest in pure gold continues to rise as financial markets seek safety.

Definition and Physical Characteristics of 24 Karat Gold

24-karat gold is pure gold with a grade of 99.9% to 99.99%. On the purity scale, no gold is truly 100% due to the micro-mineral residue from the refining process, but 24-karat is the highest level recognized globally. This type of gold has a very intense bright yellow color and natural luster, in contrast to 18K or 22K gold which tends to be paler due to the mixture of copper or silver.

In terms of texture, 24-karat gold has physical properties that are very soft and malleable. Because of this softness, pure gold is rarely used for intricately detailed jewelry or gemstone bindings as the risk of it deforming or coming loose is very high. Therefore, 24-karat gold is mostly produced in the form of precious metal bars or coins as a store of value.

Read also: What is Silver Bullion and Why is it Expensive?

Key Factors Causing the High Price of 24 Karat Gold

The price of 24-karat gold reaches its highest point in 2026 triggered by the basic law of supply and demand and rising production costs. Gold is a finite natural resource and the mining process requires huge operational costs, from exploration to refining. The harder gold is found in the earth’s crust, the higher the intrinsic value attached to each gram.

In addition to production factors, geopolitical conditions and world central bank policies also boost prices. Many countries in 2026 increased their gold reserves as a diversification measure from fiat currencies. When demand from large institutions and central banks surges while mine supply remains limited, gold prices will automatically be pushed up on the global spot market.

Also read: What is White Gold?

24 Karat Gold as a Safe Haven Investment Instrument

24-karat gold is considered a safe haven asset or the best hedge against inflation. When currency values depreciate or decrease in purchasing power, gold prices tend to move in the opposite direction or remain stable. This makes it a top choice for people and investors to preserve wealth from being eroded by the economic uncertainty that often occurs in recent times.

Another advantage that makes 24-karat gold valuable is its liquidity. Pure gold has an internationally recognized price standard, making it very easy to resell or cash out in any country. Its ease of transaction and daily price transparency make it a very flexible asset compared to property or other investment instruments.

Conclusion

24-karat gold is the highest purity gold that has a stable selling value and tends to increase every year. The high price is due to the scarcity of the resource, the high cost of production and its crucial function as a hedge against global inflation. Understanding these characteristics is important before deciding to make precious metals part of your long-term financial portfolio.

Gold-Based Crypto: When Physical Assets Meet Crypto Technology

As blockchain technology develops, gold can now be owned not only in physical form such as jewelry or bars, but also in digital form through gold-based crypto assets.

One of the most popular is Pax Gold (PAXG), each token of which is guaranteed 1:1 by one troy ounce of London Good Delivery physical gold bullion stored in a high-security vault in London. Managed by Paxos Trust Company and closely monitored by New York financial authorities, PAXG provides the stable value of physical gold but with the flexibility of blockchain.

PAXG tokens are available and traded on various crypto exchanges. PAXG is also an attractive alternative for those looking to hedge against inflation or global economic uncertainty, while remaining within the digital asset ecosystem.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

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