People buy gold as an investment and security as it helps them in case of an emergency. Read along to know about the different types of gold and their classification.
Gold is one of the purest and densest metals. It is highly malleable and corrosion free. In India, people purchase it as a status symbol and consider it auspicious in religious activities. People also buy gold as an investment and security as it helps them in case of an emergency. Read along to know about the different types of gold and their classification.
What are the Different Types of Gold and Classifications?
There are different kinds of gold and it is classified based on colour and carats
1. Based on Carats
Carat is the purity and fineness measurement of gold. It ranges from 0 to 24, where 24 is the purest form you can purchase.
It comprises 41.67% of pure gold and 58.3% of alloys such as silver, nickel, or zinc. 10-carat gold is well-built and it does not bend easily. The price of 10-carat gold is low and has a light colour compared to other forms.
This consists of 58.3% pure gold and 41.7% mixture of other metals. It is used in making daily-wear jewellery such as pendants and rings. The lower saturation of gold in it makes the colour a little pale but it does not get scratched easily.
18-carat contains 75% of pure gold and 25% of metals like silver, copper, etc. making it an everyday wear option. The lesser percentage of metals present in it makes it a better choice for you as it will be less prone to oxidation. Rich yellow shine in it makes it a great fit for making diamond studded jewellery.
It comprises 91.67% of pure gold and 8.33% of metals. It is one of the softest forms and thereby, you cannot make any heavy jewellery out of it for daily use. The price of 22-carat gold is a bit higher when compared to 14-carat and 18-carat.
24-carat is the purest form of gold available. It comprises 100% gold and does not include any other metals. You cannot make any jewellery out of it as it is very soft and gets easily scratched and bent.
You cannot buy 24-carat gold jewellery as it is very soft and can easily lose its shape. It has a deep yellow colour. It is used in medical devices and gadgets or gold coins and bars.
1. Based on Colour
There are various colours of gold available in the market which depend upon the metals or alloys that get mixed with pure gold.
Rose gold comprises pure gold and copper. It is classified into 4 different types of gold:
This consists of pure gold and metals like silver, palladium, platinum. It comes in many different carats and thereby, there is a price difference in each jewellery.
It comprises pure gold along with silver and copper. The 18-carat is the best gold you can use to make exquisite jewellery. Yellow gold comes in various carats like 10 carats, 14 carats, 18 carats, 22 carats, and 24 carats.
Why is Gold Expensive?
Gold is one of the most precious metals. It has unique properties and we use it in our daily life. The price value of gold is based on many factors. Some of them are :
The extraction of gold is an expensive process and making it available in the market costs a lot of money. All these costs get included when purchasing any gold item from the market.
The supply and demand of gold plays a major role in deciding the price. The demand for gold is usually high. However, if the demand falls and supply increases, then there will be a huge fall in its price.
In case of any emergencies like a war or a pandemic, the shortfall of the workforce and the reduced availability of resources increase the price of gold. As the gold cannot be extracted and transported in the market, there is a demand rise and eventually, the price shoots up.
What are Gold Hallmarks?
Gold Hallmark is a mark on your gold jewellery that denotes the purity of the gold and maintains the quality of fineness. The Bureau of Indian Standards (BIS) recognises the hallmark and its main purpose is to protect you from any fraud.
Hallmarks consist of a BIS Standard Mark followed by the fineness and purity grade and a six-digit alphanumeric code. It will benefit you while selling the gold or applying for a gold loan. Financial institutions consider the authenticity of gold as a prime factor while giving loans.
Gold is an eye-catching metal and its demand in today's world is incomparable. Gold is used in everyday activities such as gadgets, jewellery, and even in medical appliances. Price of gold ornaments depends on purity among other factors. Therefore, when you are doing jewellery shopping, you must make sure what types of metal are being used along with the types of gold.
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