What is Gold Grade?
Jakarta, Pintu News – Gold content is a measurement that shows how much pure gold is contained in a gold product, either in the form of jewelry or gold bars. It is usually expressed in carats (K) or in percentage (%) of gold purity.
Pure gold has a grade of 24 carats (24K) which is equivalent to almost 100% pure gold. The higher the grade, the greater the pure gold content and usually the higher the price.
Why do gold come in different grades?
In jewelry, gold is rarely used in its pure 24K form because it is very soft and easily deformed. Therefore, gold is usually mixed with other metals such as:
- silver
- copper
- nickel
- palladium
This mix of metals aims to make gold stronger, more scratch-resistant, and more suitable for jewelry.
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Rust System on Gold Grade
Gold content is often expressed in carats with a 24-part system. This means that the 24 parts represent the total composition of the metal.
Example:
- 24K → almost 100% pure gold
- 18K → 18/24 parts gold (75%)
- 14K → 14/24 parts gold (58.5%)
- 9K → 9/24 gold parts (37.5%)
The smaller the rust number, the more other metals are mixed in.
Examples of Common Gold Grades in the Market
Here are some commonly encountered gold grades:
| Rust | Gold Percentage | Description |
|---|---|---|
| 24K | ±99% | Pure gold / precious metals |
| 22K | ±91,6% | Generally high grade jewelry |
| 18K / 750 | 75% | Popular jewelry in Asia |
| 17K / 700 | 70% | Common jewelry in Indonesia |
| 14K / 585 | 58,5% | Widely used in the West |
| 9K / 375 | 37,5% | Highly alloyed light gold |
Numbers such as 375, 585, or 750 are usually stamped on jewelry to indicate the gold content in percent.
Relationship between Gold Content and Price
The grade of gold greatly affects the value of a gold product. In general:
- Higher grade → more expensive price
- Lower grade → cheaper price but stronger
For example:
- 24K gold is usually used for investment (gold bars)
- 18K or 17K gold is widely used for jewelry
Old Gold and Young Gold Terms
The Indonesian market also recognizes two common terms related to gold grades:
- Old gold → high grade gold, usually 18K and above
- Light gold → low grade gold such as 9K or 14K
This term is used to describe how high the pure gold content is.
Conclusion
Gold grade is a measure that indicates the purity level of gold in a product. The value is expressed in carats or percentages, with 24K being the highest level of purity. Jewelry usually has a lower grade because it is alloyed with other metals to make it stronger and more durable.
Understanding the grade of gold is important before buying gold, as the grade determines the price, strength, and investment value of the gold.
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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), a stablecoin backed by one troy ounce (t oz) of 400 oz London Good Delivery gold bullion, stored in Brink’s vaults.
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.
*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. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash beforeinvesting. All activities of buying and selling Bitcoin (BTC) and other crypto asset investments are the responsibility of the reader.
Reference
Fifth Bloom. What does 9K, 14K, 17K, 18K, 24K, 375, 700, 750 and LM Gold Grade/Karat Mean. Accessed today’s date.
