What is Gold Purity

What is Gold Purity

Discover the significance of gold purity and its impact on quality and value. Check your gold loan eligibility and get the best value for your gold.

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Understanding gold purity

Gold in India is far more than a precious metal. It is closely linked to traditions, weddings, festivals, and family savings. Whether you are buying jewellery for a celebration or investing for the future, purity plays a key role in determining its real worth.


Gold purity refers to the amount of pure gold present in a piece of jewellery compared to other metals mixed with it. Purity is measured in karats. 24 karat gold is considered the purest form, containing almost entirely gold. However, because pure gold is soft, it is often mixed with metals such as copper or silver to improve strength and durability. For example, 22 karat gold contains 22 parts pure gold and 2 parts other metals.


Understanding purity directly affects both value and durability. If you are wondering how to check the purity of gold, always look for the Bureau of Indian Standards hallmark and karat markings. This ensures authenticity, fair pricing, and long-lasting value for your investment.


Different methods to test gold purity

Wondering if your gold is genuine? There are a few easy and reliable ways to find out:
 

  • Acid test – A small drop of nitric acid is applied to gold. The way it reacts helps reveal the purity level.
  • Electronic testers – These modern devices check gold purity by measuring its conductivity, giving quick and accurate results.
  • Float test – A simple home method where you place gold in water. Real gold is dense and will sink immediately.
  • Hallmarking – In India, the BIS hallmark is the most trusted way to check purity. It confirms that your gold meets certified standards.
     

These methods, especially hallmarking, ensure you know exactly what you are buying or pledging. So, the next time you want to be sure of your jewellery’s value, try one of these gold purity at home.


How to check gold jewellery purity before buying

Before buying gold jewellery, it’s crucial to verify its purity to ensure you’re getting what you pay for. Look for the BIS hallmark, which certifies that the jewellery meets Indian gold standards. You can also request a gold purity check using a karat meter at the jeweller's. Additionally, it’s advisable to check the gold’s karat rating, with 22k being the most commonly sold in India. Ensure the jeweller provides an authenticity certificate, detailing the gold’s weight and purity. This verification helps protect your investment and ensures the testing of gold jewellery for long-term value and reliability.
 

What is the difference between 22k and 24k gold purity?

Understanding the difference between 22k and 24k gold helps in a proper gold purity check and clarifies how to check purity of gold before buying or investing.


Feature24K gold22K gold
Purity level99.9% pure gold91.6% pure gold
Metal compositionAlmost no other metalsMixed with copper or silver
DurabilityVery softStronger and more durable
Best useCoins and bars for investmentJewellery for regular wear
PracticalityNot ideal for intricate designsSuitable for detailed ornaments

When learning how to check the purity of gold, always verify the hallmark certification to ensure an accurate gold purity check and fair pricing. 


Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.
 

How to maintain gold jewellery according to its purity

Maintaining gold jewellery properly depends on its purity level. Since 24 karat gold is softer, it should be stored separately in a soft cloth pouch to prevent scratches. 22 karat gold, being more durable, is suitable for regular wear but still requires gentle care. Avoid exposing gold ornaments to harsh chemicals, perfumes, or moisture. Clean them occasionally with mild soap and warm water, then dry with a soft cloth. Regular gold purity check and knowing how to check the purity of gold through hallmark verification also help ensure lasting value and proper maintenance of your jewellery.


How to test the purity of gold using a karat meter

A karat meter is a handy and reliable tool for anyone looking to verify gold purity. Here’s why it is so useful:
 

  • Accurate measurement – It works by measuring the electrical conductivity of gold, which changes with its purity. This helps you determine gold karat precisely, whether it is 22k, 18k, or even lower.
  • Non-destructive testing – Unlike acid tests, the karat meter does not harm your jewellery, keeping your gold intact and safe.
  • Quick results – The device gives instant readings, making it easy for buyers and sellers to make informed decisions on the spot.
  • Check all types of gold – From 9 carat gold purity to 24k gold, a karat meter provides reliable results every time.
     

Apply in minutes. Money in account instantly with a Bajaj Finserv Gold Loan
 

Please note, Bajaj Finance only offers loan against 18-22 karat gold. 

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Why gold purity matters when applying for a gold loan?

When applying for a gold loan, gold purity is a crucial factor. Lenders assess the purity of the gold to determine its market value, and in turn, the loan amount you are eligible for. Higher purity gold, such as 18-22 karat, can secure a larger loan, as purer gold carries more financial weight. Lower purity gold, on the other hand, may result in a reduced loan amount. Therefore, ensuring high-purity gold will help you secure a more substantial loan, protecting your financial interests.
 

Before you pledge your gold, know your options. Check your gold loan eligibility and choose the right amount and tenure.

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Latest RBI updates

Section

Parameter

Applicable Details

 

Eligibility Criteria

Gold purity accepted

18-22 Karat for jewellery and ornaments

24 karat for gold coins

Eligible collateral types

Gold ornaments, jewellery, and coins

 

 

 

 

 

 

 

 

 

Eligible limit for each collateral type

Ornaments

Total pledged weight across all loans must not exceed 1 kilogram

Gold coins

The total weight of gold coins pledged cannot be more than 50 grams.

Gold Jewellery

As per maximum loan amount.

Overall exposure limit

The total loan exposure across ornaments, jewellery, and gold coins together must not exceed the maximum loan limit of Rs. 2 crore.

Collateral protection

 

Any loss, damage, or discrepancy in the quantity or purity of your pledged gold identified during audit, return, or auction will be recorded and promptly communicated to you or your legal heirs. The reimbursement or compensation process, as per company policy and SOP, will be clearly explained. Delays in collateral release due to lender fault will attract compensation of ₹5,000 per day.

 

 

 

Gold loan renewal

Renewal parameter

You can request renewal of your gold loan before maturity if it remains in standard status and within permissible LTV limits. This facility is available only to existing customers. For bullet repayment loans, accrued interest must be cleared. Renewals are subject to credit checks, fresh applicable charges, and are not allowed after maturity.

 

 

Gold loan top up

Top up parameter

Top-up is allowed before maturity, subject to regulatory LTV limits, credit assessment, and customer eligibility. Fresh fees and charges apply. Top-up after maturity is not permitted, even if dues are outstanding. Top up facility is available only to existing users.

 

 

 

LTV (Loan to Value)

For loans up to Rs.2.5 lakh

85%

For loans between more than Rs.2.5 lakh to Rs.5 lakh

80%

For loans from more than Rs. 5lakh to Rs. 2 crore

75%

 

 

 

Gold Value

Evaluation parameter

As per the latest guidelines, gold loans are offered against specific purity of gold jewellery, ornaments and gold coins, valued using lower of the average closing price for your gold's specific purity over the last 30 days or the previous day's closing price, as published by IBJA or a SEBI-regulated commodity exchange, within prescribed limits and subject to KYC and timely repayment.

Gold purity test for accurate gold loan valuation

For an accurate gold loan valuation, lenders perform a thorough gold purity test. The purity level directly influences the loan amount, as higher purity gold fetches a higher value per gram. This purity is evaluated using tools such as karat meters. Once the purity is confirmed, lenders use it to determine the gold loan value per gram. You can calculate potential loan amounts by using tools like the gold loan calculator by Bajaj Finance to get an estimate based on your gold’s purity.
 

Ready to unlock the value of your gold? Apply for Bajaj Finserv Gold Loan today.

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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. *