What Does Carat Mean in Gold?

What Does Carat Mean in Gold?

Discover what does carat in gold mean and how does it affect gold rates. Check your gold loan eligibility and get the best value for your gold.

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Understanding carat in gold

The words carat and karat are often mixed up, but they have different meanings. Carat is about weight, mainly used for gemstones like diamonds, where 1 carat equals 200 milligrams. In contrast, karat gold refers to purity. For example, 24 karat gold is considered the highest level of purity, while 22K or 18K are mixed with other metals to make jewellery more durable. So, while carat in gold may sometimes confuse people, remember that carat measures weight, and karat indicates how pure the gold is. This difference is key when understanding both gemstones and karat gold jewellery.
 

How does karat differ from carat in gold?

The term "carat" in gold differs significantly from its use in gemstones. While both are spelt the same, they represent distinct concepts. 

AspectCarat (Gemstones)Karat/Carat (Gold)
MeaningRefers to weight of gemstones like diamonds.Refers to purity of gold.
Measurement1 carat = 200 milligrams.Out of 24 parts, the number of parts that are pure gold.
Use in ValueHelps determine gemstone size and value.Defines how pure or mixed the gold is in jewellery.
ExampleA 2-carat diamond weighs 400 milligrams.24-karat gold = pure gold, 18-karat gold = 18 parts gold + 6 parts other metals.
Key PointCarat measures gemstone weight.Karat measures gold purity.

What is carat gold?

Carat gold refers to the measurement of the purity of gold, indicating the proportion of gold in a particular alloy out of a possible 24 parts. The term "carat" is often used in British English to describe this purity level. Pure gold, which is soft and malleable, is considered 24 carats. However, in practical applications, gold is often alloyed with other metals to enhance its strength and durability. As the carat number decreases, the proportion of pure gold decreases as well, with common carat levels being 18, 22, and 24. For example, 18-carat gold contains 18 parts gold and six parts other metals, making it 75% pure. This measurement is crucial in the jewellery industry, as it directly affects the gold's value, durability, and suitability for different types of adornments.
 

Origin of carat

The origin of the term "carat" traces back to ancient times when the carob seed was used as a standard of weight in trade. The uniformity of these seeds made them an ideal measure for small quantities, especially in the trading of precious gemstones. Over time, this method evolved, and the carat became a universal unit of weight for gemstones, particularly diamonds. In the Middle Ages, the carat was standardised as 200 milligrams. The adoption of the metric system further cemented its use globally. The term was later adapted to gold purity, where it represents the proportion of pure gold in an alloy. Thus, "carat" carries historical significance, linking ancient trade practices to modern-day measurements in the jewellery industry. 


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The meaning of carat vs. carat in gold

The word "carat" has two distinct meanings depending on its context, especially in jewellery. When referring to gemstones, "carat" is a unit of weight, crucial in determining the value of diamonds and other precious stones. One carat is equivalent to 200 milligrams. On the other hand, in gold, "carat" signifies purity rather than weight. It indicates the amount of pure gold in an alloy, divided into 24 parts. For example, 24-carat gold is pure gold, while 18-carat gold consists of 18 parts gold and six parts other metals, making it 75% pure. Understanding these distinctions is vital for consumers and jewellers alike, as it directly impacts the value and characteristics of the gold or gemstones being purchased.


How karat is measured or stamped

When it comes to gold, karat gold meaning is all about purity. Gold is measured in 24 parts, where 24 karat represents pure gold. For example, 18 karat means 18 parts are gold and 6 parts are mixed with other metals like silver, copper, or zinc. To make things easy, jewellers stamp the purity on gold items. You may see markings like “24K,” “22K,” or “18K” engraved on the jewellery. This stamp shows the carat meaning in gold and tells you how pure the piece really is. In India, the BIS hallmark is a trusted way to verify this. The hallmark includes the karat value, a BIS logo, and the jeweller’s unique code. So, whenever you buy jewellery, always check for these stamps. It is a quick way to confirm whether you are really getting what you are paying for.


Uses of different karats

Not all gold is used the same way, and that is where different gold in carats come in. Pure gold karat (24K) is very soft, so it is usually kept for investments like coins or bars. It shines bright but bends easily, making it impractical for daily wear. Moving down, 22 karat gold is popular in India for jewellery like bangles, chains, and necklaces—stronger than 24K but still very pure. Then you have 18 karat gold, which has more alloy mixed in. It is perfect for rings, watches, or heavy-use jewellery, as it is more durable. Lower still, 14K or even 1 karat gold is used mostly in western countries for lightweight, wearable pieces where durability matters more than purity. So, whether you are buying for investment or everyday wear, the karat you choose makes all the difference.


How to check the purity of gold in carats

Checking carat meaning gold is easier than you think. The most reliable way is to look for the BIS hallmark on your jewellery. This stamp tells you the karat gold value, the BIS logo, and other details. If the gold says 22K, you know it is 22 parts pure gold and 2 parts alloy. Apart from stamps, you can also test gold at a jeweller’s shop using purity-testing machines like a karat meter. For a quick home check, you can try simple methods: a magnifying glass to spot hallmarks, a magnet test (since real gold is not magnetic), or even a basic scratch test. However, these are not as accurate as professional checks. To be 100% sure, always get your jewellery tested by a certified jeweller. That way, you know exactly what you own in terms of purity and value.


Purity and use of 1 carat gold

One carat of gold, equivalent to 1/24th of pure gold, represents a very low level of purity, containing only approximately 4.17% gold. Due to this minimal gold content, 1-carat gold is not typically used in jewellery or other fine adornments. Instead, it is often used in industrial applications where gold's properties, such as corrosion resistance, are needed, but high purity is not required. In contrast to higher carat golds, 1-carat gold lacks the lustre and malleability desired in fine jewellery. Therefore, it is not a standard for consumer gold products but can be found in certain technological components or specialised industrial uses where only trace amounts of gold are necessary.


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How does carat influence gold value?

The carat meaning in gold is all about purity, and it plays a big role in deciding the value of your jewellery or investment. While weight matters, the carat rating tells you how much of that weight is actually pure gold karat. Understanding this difference helps when comparing gold pieces or making investment choices.


  • Higher carat gold: For example, 24 karat gold is pure and considered the most valuable since it contains no other metals.
  • Lower karat gold: 1 karat gold has very little purity, while 18 or 14 karat gold mixes gold with other metals for strength.
  • Karat gold meaning: It represents how much gold versus alloy is in your jewellery.
  • Gold in carats: Higher purity suits investment, while lower carats are great for durable, everyday wear.
     

Different carat levels and their implications

Different carat levels in gold indicate varying degrees of purity, each with distinct implications for use, value, and durability. For instance, 24-carat gold is pure but soft, making it less suitable for everyday jewellery that requires durability. 22-carat gold, containing 91.67% pure gold, is slightly more robust but still maintains a high level of purity, making it popular for wedding bands and high-end jewellery. On the other hand, 18-carat gold, with 75% purity, strikes a balance between durability and purity, often used in intricate designs and settings. Lower carat gold, such as 14 or 9 carats, contains more alloyed metals, making it harder and more resistant to wear, suitable for everyday jewellery but less valuable in terms of gold content.
 

Carat wise gold purity


CaratGold Purity (%)Common Usage
24 Carat99.9%Pure gold, ideal for investment, not typically used in jewellery due to softness.
22 Carat91.67%Popular in jewellery, particularly in India, for wedding ornaments and high-value items.
18 Carat75%Common in fine jewellery, balancing purity and durability.
14 Carat58.3%Used in more durable, everyday jewellery, popular in Western markets.
9 Carat37.5%Least pure, highly durable, and often used in budget-friendly jewellery.

Carat wise fineness


CaratFinenessGold Content (per gram)
24 Carat999999 milligrams of pure gold.
22 Carat916916 milligrams of pure gold.
18 Carat750750 milligrams of pure gold.
14 Carat583583 milligrams of pure gold.
9 Carat375375 milligrams of pure gold.


These tables provide a quick reference to understand how different carat levels correlate with gold purity and fineness, essential for making informed decisions in gold purchasing and investment.


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Gold loan eligibility criteria

Availing a gold loan with Bajaj Finance is hassle-free thanks to its simple eligibility rules. You only need to be an Indian citizen, within the age group of 21 to 70 years, and ensure your jewellery meets the required gold purity standards. 


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

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Gold loan application process

Getting a Bajaj Finserv Gold Loan is simple and hassle-free. You can visit the nearest branch with your gold jewellery and KYC documents, where the team will assess its purity and weight, decide your loan eligibility, and process it instantly. In most cases, the loan is disbursed on the same day, ensuring quick access to funds. For even greater ease, you also have the option to apply online through the Bajaj Finserv App or website, making the entire process smooth and convenient.


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Disclaimer

Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.