Basic terms to know before buying gold

Trivia | Fun Facts

Here is what you must know about karats, weighing units, and colours before you buy gold in any form- be it bars, coins, or jewellery.

 
Basic terms to know before buying gold
Gold comes in various karats, colours and measurable units. While the first two serve as parameters of purity, weighing units such as grams, ounces, and tolas helps determine the price of gold.
Karat A universal unit to define the fineness or purity of gold, karat signifies the percentage of the yellow metal used in a predominantly gold product.
Which are the different Denominations?
24k 99.5% to 99.9% | purity 24 parts - Gold | Lower in density, soft and pliable | Uses:  Gold bars and coins 22k 91.67% purity |  22 parts - Gold  2 parts - Silver, Zinc, or alloys | Great durability | Uses:  Gold jewellery 18k 75% purity | 18 parts - Gold 6 Parts- Copper, Silver, other metals | Can hold diamonds and precious stones | Uses: Stone studded 
gold jewellery
What about other Denominations?
14k 58.3% purity | 12k 50% purity | 10k 41.7% purity
Look out for the BIS authenticity hallmark. 
As per BIS guidelines, all hallmarked gold jewellery items will include one of the following numbers corresponding to its purity. 22K916 = 22 karat gold with 91.6% purity | 18K750 = 18 karat gold with 75% purity | 14K585 = 14 karat gold with 58.5% purity
COLOR
Bright Yellow Gold | Composition: Gold * White Gold | Composition: Gold + Nickel Rose or pink Gold | Composition: Gold + Copper Green Gold | Composition: Gold + Silver
* White Gold and Rhodium, which is often used to plate parts of predominantly yellow Gold jewellery, are completely different alloys and metals.
Weighing Units | Here are the different gold weighing units and their conversion ratios.
Grams  The most contemporary unit used in India | Ounces  The most contemporary unit used 
in the West as a universal measure
Troy Ounces  An imperial unit, it is used commonly in the West to weigh precious metals | Tolas  A centuries-old unit used in Indian and other South Asian civilizations
1 ounce = 28.3 grams | 1 troy ounce = 31.1 grams | 1 tola = 11.33 grams
Since the price of gold published in the public domain refers to 24k gold, it is important to consider the actual price applicable when buying gold of lesser fineness.

Gold Glossary

Commodities market

It is a market where investors trade in primary products rather than manufactured products. Agricultural products such as wheat, coffee, cocoa, and sugar are called soft commodities whereas mined commodities such as gold and oil are called hard commodities. MCX in India, COMEX in London, and NYMEX in the US are popular commodity exchanges.

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