Difference Types of Gold

Understanding gold karats and their role in valuation

Gold is more than just a precious metal in India—it’s both a cultural symbol and a smart financial asset. Its purity is measured in karats, with 24K being pure gold. Many people use gold as collateral for gold loans, making it easy to get quick funds without lengthy paperwork or credit checks. Banks and financial institutions accept gold ornaments or coins and offer loans based on a percentage of the gold’s value at competitive interest rates. These loans are especially handy for short-term needs and in areas with limited banking access. So, gold isn’t just for tradition—it’s a practical way to secure fast financial support when you need it.

What are the different types of gold?

Gold, a precious metal, is available in various types, each with unique characteristics. Here are some of them:

1. 24 karat gold: The purest form of gold, it is 99.9% pure. It’s the most expensive and has a bright yellow colour.
2. 18 karat gold: Comprising 75% gold and 25% other metals, it’s stronger and more durable than 24K gold.
3. 14 karat gold: Popular in the US, it contains 58.3% gold and 41.7% other metals.
4. 10 karat gold: The lowest gold alloy, it’s strong but contains only 41.7% gold.
5. Gold alloys: These include Yellow, White, Rose, Green, Purple, Blue, and Black Gold. They are created by mixing gold with other metals, giving them unique colours.
6. Gold plating, vermeil, rolled, and filled gold: These types involve coating a base metal with a layer of gold.

Each type of gold has its own value, strength, and colour, making it suitable for different uses. The type of gold used in jewellery significantly impacts its value and durability.

Different colours of gold

Gold, a precious metal, can be alloyed with other metals to create a variety of colours. Here are some of the most common ones:

1. Yellow gold: The yellow gold is the purest colour of gold. It’s made by mixing gold with silver, copper, and zinc. It’s the most hypoallergenic and requires the least maintenance.
2. White gold: A modern and sleek option, the white gold is made of gold and platinum or palladium. It’s more durable and scratch-resistant than yellow gold.
3. Rose gold: A romantic and warm colour, it’s alloyed with gold, copper, and silver. Due to its copper content, rose gold is more durable than yellow or white gold.
4. Green gold: A soft and natural colour, it’s mixed with gold, silver, and sometimes copper. Silver gives the gold alloy the green nuance.
5. Grey gold: A neutral and subtle colour, it’s a unique blend of gold and other metals.
6. Purple gold: A brittle and exotic colour, it’s a rare type of gold.
7. Blue gold: A cool and dark colour, it’s another unique type of gold.
8. Black gold: A bold and mysterious colour, it’s created through various methods, including alloying and surface treatments.

The colour of gold is not just limited to the traditional yellow. By alloying gold with various metals, we can achieve a spectrum of colours like white, rose, green, grey, purple, blue, and even black. Each colour has its unique composition and characteristics, offering a wide range of options for jewellery and other decorative items. This diversity in gold colours allows for personalisation and expression through this precious metal.

Wondering how much you can borrow on your gold? Just check your gold loan eligibility—it takes seconds and minimal paperwork!

Different types of gold coatings

Gold coatings, or plating, involve applying a thin layer of gold onto a base metal. Here are some types:

1. Gold plated: This involves electroplating a very light layer of gold (0.05% of actual gold or less) on top of a base metal like copper, brass, nickel, or aluminium.
2. Gold vermeil: This is heavy gold plating over sterling silver. The layer needs to be at least 2.5 microns thick, and the minimum gold purity used should be 10 karats.
3. Hard gold plated: This is a variant where a substantial layer of gold is deposited onto a substrate.
4. Soft gold plate, duplex gold plated, vacuum gold plated, chemical plated, and immersion gold plated: These are other types of gold plating with varying characteristics and uses.

Types of jewellery filling

Here are the common types of gold filling: 

1. Gold-filled/rolled gold

Gold-filled, often referred to as rolled gold, is a material made by heat and pressure-bonding a thin layer of gold to a brass core. The exterior gold layer must account for at least 5% of the item’s total weight. Gold-filled items are highly resistant to tarnish and the gold layer can last for many years, even with daily wear. It’s an affordable alternative to solid gold, offering the same luxurious look and feel. Gold-filled jewellery is a popular choice for its durability, affordability, and resemblance to pure gold. It’s a great option for those with metal sensitivities.

2. Vermeil

Vermeil is gold-plated sterling silver, with a gold layer of at least 10K and 2.5 microns thick. It is more durable than standard gold plating, giving a luxurious look without high costs. Over time, silver may show through, but it remains a stylish, budget-friendly option.

3. Gold plated

Gold-plated jewellery has a very thin gold layer applied to base metals like brass, copper, or silver. It gives the appearance of gold at a low cost but can wear off with frequent use or exposure to chemicals, requiring occasional replating.

Conclusion

Gold loans generally have lower interest rates than other types of loans since gold serves as collateral. However, the interest rate may vary depending on the gold rate. When the gold rate is high, the interest rates are lower as the higher value of the collateral diminishes the risk. Understanding the types of gold and their impact on gold loans can help borrowers make informed decisions and choose the loan that best fits their unique situation and requirements.

The gold loan interest rates typically have lower interest rates compared to other types of loans, ranging between 9.50% to 24% p.a. The exact rate depends on various factors, including the lender’s policies and the prevailing market conditions.

Know how much you can borrow on your gold jewellery—check your gold loan eligibility instantly for a smooth and transparent process.