Uses of different karats levels across India
Different types of gold in carats are used for different purposes based on their purity, durability, and appearance. Higher karat gold contains more pure gold, while lower karat gold includes additional metals that improve strength and make the jewellery more durable for everyday use.
Pure gold karat, such as 24K gold, is soft and mainly preferred for investment products like coins and bars. On the other hand, 22K and 18K gold are widely used for jewellery because they offer a balance between purity and durability. Lower karat gold is often chosen for lightweight and daily wear jewellery where strength matters more than high gold content.
| Gold purity | Common use case |
|---|
| 24K gold | Gold coins, bullion, and investment purposes |
| 22K gold | Traditional jewellery such as bangles, chains, and necklaces |
| 18K gold | Rings, watches, designer jewellery, and daily wear ornaments |
| 14K gold | Lightweight and durable fashion jewellery |
| Lower karat gold | Affordable jewellery designed for regular usage |
Choosing the right karat gold depends on whether your priority is investment value, jewellery durability, or daily wear comfort.
How do you check gold purity in carats?
You can check gold in carats purity in a few simple ways before buying, selling, or pledging gold:
- Look for the BIS hallmark stamp on the jewellery — this is the most reliable proof of purity.
- Check for markings like 24K, 22K, or 18K stamped on the piece.
- A 22K stamp means 22 parts pure gold and 2 parts alloy.
- Use a magnifying glass if the stamp is too small to read clearly.
- Jewellers often use karat meters or purity-testing machines for accurate results.
- A simple magnet test can help, since pure gold is non-magnetic.
- Home tests give a rough idea only — for anything serious, always get it tested by a certified jeweller or testing centre.
What is 1 carat gold used for?
1 carat gold contains only 4.17% pure gold — the lowest point on the purity scale. It's too low in gold content for jewellery or investment, so it's mainly used in industrial and tech applications where small traces of gold's conductivity or corrosion resistance are needed.
You won't find 1 carat gold sold in Indian jewellery markets, and it cannot be used as collateral for a gold loan.
Planning to use your gold for quick funds? Check your gold loan eligibility now and see how much you can borrow instantly.
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.
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.
Note: It is important to note that Bajaj Finance offers gold loan only against 18-22 karat gold as collateral.
Carat wise gold purity
| Carat | Gold Purity (%) | Common Usage |
| 24 Carat | 99.9% | Pure gold, ideal for investment, not typically used in jewellery due to softness. |
| 22 Carat | 91.67% | Popular in jewellery, particularly in India, for wedding ornaments and high-value items. |
| 18 Carat | 75% | Common in fine jewellery, balancing purity and durability. |
| 14 Carat | 58.3% | Used in more durable, everyday jewellery, popular in Western markets. |
| 9 Carat | 37.5% | Least pure, highly durable, and often used in budget-friendly jewellery. |
Carat wise fineness
| Carat | Fineness | Gold Content (per gram) |
| 24 Carat | 999 | 999 milligrams of pure gold. |
| 22 Carat | 916 | 916 milligrams of pure gold. |
| 18 Carat | 750 | 750 milligrams of pure gold. |
| 14 Carat | 583 | 583 milligrams of pure gold. |
| 9 Carat | 375 | 375 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.
Different carat levels and what they mean for gold loans in India
Understanding carat is not just useful when buying — it is equally important when pledging gold as collateral for a loan. The purity of your gold directly determines the loan amount you are eligible for.
Bajaj Finance offers gold loans against 18-22 karat gold jewellery and ornaments, and gold coins up to 24 karat purity.
The loan amount is calculated based on the purity and weight of your eligible gold, along with the RBI-prescribed LTV ratio. Bajaj Finance uses the lower of the previous day's closing price or the 30-day average closing price of gold, as published by IBJA or a SEBI-regulated commodity exchange — keeping the valuation transparent and consistent.
Want to make the most of your hallmarked gold? Check your gold loan eligibility and unlock quick funds against your verified jewellery—all while ensuring complete safety and transparency.
