What is the Difference Between 22K and 24K Gold

What is the Difference Between 22K and 24K Gold

Understand how 22K and 24K gold differ in purity and value, and check your gold loan eligibility to estimate how much you could borrow against your eligible gold.

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22 carat gold vs 24 carat gold: What is the difference?

22 carat gold and 24 carat gold differ mainly in purity, strength, price and use. 22K gold contains about 91.6% gold and is commonly used for jewellery because it is stronger than 24K gold. 24K gold contains about 99.9% gold and is generally preferred for investment products such as gold bars and coins.

Understanding the difference between 22K and 24K gold can help you choose the right type for jewellery or investment. It can also help you understand the value of eligible gold before applying for a gold loan.

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Key takeaways

Understand how 22K and 24K gold differ in purity, uses and gold loan eligibility.

  • 22K gold (91.6% pure) is commonly used for jewellery, while 24K gold (99.9% pure) is preferred for investment bars and coins.
  • Gold purity affects its price, strength and suitability for different uses.
  • Bajaj Finance accepts eligible 18-22 karat gold jewellery and ornaments, and gold coins up to 24 karat purity, subject to applicable terms.
  • The gold loan amount depends on purity, net gold weight, valuation and the applicable LTV limit.

Bajaj Finance offers gold loans from Rs. 5,000 up to Rs. 2 crore, subject to eligibility and applicable terms. Check your gold loan eligibility to estimate your loan amount.

What is 24 carat gold?

24 carat gold is the highest-purity form commonly referred to as pure gold. It contains about 99.9% gold and is softer than gold mixed with other metals. This makes it less suitable for most jewellery that needs to withstand regular wear.

24K gold is commonly used for investment products, including gold bars and coins. Its higher gold content generally gives it a higher price per gram than 22K gold, although the actual price depends on the applicable gold rate.


What is 22 carat gold?

22 carat gold contains about 91.6% gold, with the remaining 8.4% made up of other metals. These metals improve its strength and make it more suitable for jewellery than 24K gold.

In India, 22K gold jewellery is commonly marked as 22K916, indicating a fineness of 916 parts per 1,000. You can check the purity marking and hallmark details when buying gold jewellery.


What does karat mean in gold purity?

Karat measures the proportion of gold in an item out of 24 parts. The higher the karat, the greater the proportion of gold.

  • 22K gold: 22 out of 24 parts are gold, or about 91.6% pure.
  • 24K gold: nearly all 24 parts are gold, or about 99.9% pure.

You can learn more about gold purity before buying gold or assessing your existing jewellery.


Difference between 22K and 24K gold

The main difference between 22K and 24K gold is the amount of pure gold each contains. This affects their strength, common uses and price.


Parameter22K gold24K gold
Gold purityAbout 91.6%About 99.9%
Hallmark finenessCommonly marked 916Depends on the product and applicable standard
StrengthStronger than 24K goldSofter and more malleable
Common usesJewellery and ornamentsInvestment bars and coins
Price per gramGenerally lower than 24K goldGenerally higher than 22K gold
Suitability for regular jewelleryMore suitableLess suitable for most everyday jewellery

The price difference mainly reflects the higher gold content in 24K gold. However, the final price you pay for jewellery may also include making charges and applicable taxes.


Which is better: 22K vs 24K gold?

The right choice depends on how you plan to use the gold.

  • Choose 22K gold if you want jewellery that offers a balance of gold purity and strength.
  • Choose 24K gold if your priority is high gold purity for investment products such as bars or coins.
  • Compare the applicable rate for the same weight and purity before buying.
  • Check the hallmark and purity details instead of relying only on appearance.

Neither type is universally better. Your intended use, budget and preference for purity should guide your choice.


Which gold is best for jewellery: 22 carat or 24 carat?

22K gold is generally more suitable for jewellery because the added metals make it stronger than 24K gold. It is commonly used for ornaments that need to retain their shape during regular use.

24K gold is softer and can scratch or bend more easily. It is therefore less suitable for most jewellery intended for frequent wear. If you are buying jewellery, check its purity, hallmark and net gold weight before making a decision.


How can you check whether gold is 22K or 24K?

Check the purity marking and hallmark on the gold item. In India, 22K jewellery is commonly marked 22K916. Hallmark details help you identify the declared purity of the item.

For hallmarked jewellery, you can also check the HUID (Hallmark Unique Identification) number using the BIS Care app. If you are unsure about the purity, seek verification from an appropriate testing facility.

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How does gold purity affect a gold loan?

Gold purity affects the value of the eligible gold considered for a gold loan. Bajaj Finance accepts eligible gold jewellery and ornaments between 18-22 karat purity, as well as eligible gold coins up to 24 karat purity, subject to applicable terms.

The final loan amount is not based only on the retail price of gold. It depends on the eligible gold’s actual purity and net weight, the applicable valuation method and the Loan-to-Value (LTV) limit. The lender considers the lower of the previous day’s closing price or the 30-day average closing price for the relevant purity, as published by IBJA or a SEBI-regulated commodity exchange.

If you plan to pledge eligible gold, check your gold loan eligibility before applying.

Bajaj Finance offers gold loans from Rs. 5,000 up to Rs. 2 crore, subject to eligibility and applicable terms.


Quick tip: It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.


Please note: We also do not simply use today's headline rate. As per RBI, we use whichever is lower between the previous day's closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange. This protects you from a sudden price spike inflating things unrealistically. 

The maximum LTV eligible for a loan depends on the loan amount and cannot be more than the limits given. To know more, click here.

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Frequently asked questions

Gold Purity

Gold Value

Which gold is best for daily use?

For daily wear, 22K gold strikes a balance between elegance and durability. The alloy mix provides strength, making it suitable for jewellery that withstands regular use.

24k is the most expensive form of gold since it’s the purest. This form of gold is suitable for investment purposes.

24K gold is the better investment option due to its higher purity (99.99%), making it more valuable and ideal for investment purposes. It is commonly used for gold bars and coins. In contrast, 22K gold, which is 91.67% pure, is more suitable for jewellery due to its durability. The key difference between 22K and 24K gold lies in their purity, with 24K gold being the preferred choice for investment.

22K gold is preferred over 24K gold for jewellery because it is mixed with other metals, making it 91.67% pure and significantly more durable. This added strength allows it to withstand daily wear and tear, unlike 24K gold, which is 99.99% pure but too soft for regular use. The main difference between 22K and 24K gold is the durability and suitability of 22K gold for everyday jewellery.

22K gold is cheaper than 24K gold. The lower price is due to its lower purity, containing 91.67% gold compared to 24K gold's 99.99%. The difference between 22K and 24K gold is significant in terms of cost, with 22K gold being more affordable and commonly used in jewellery, while 24K gold is more expensive and primarily used for investment purposes.

To calculate the rate of 22K and 24K gold, first, check the current market gold price per gram. For 24K gold, this rate is straightforward. For 22K gold, multiply the 24K rate by 0.9167 (since 22K gold is 91.67% pure). For example, if the 24K rate is ₹5,000 per gram, the 22K rate would be ₹4,583 per gram. Using a gold value calculator can simplify this process and ensure accuracy.

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Disclaimer

Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *