2024-05-09 03:48:35
New Delhi: Gold is considered the safest means for investment. If a person wants to buy pure gold then he has the option of 24 carat gold available. It can be purchased in the form of gold coins or bars (bullion). Gold coins and bullion are usually marked with 999 or 995 purity. This can create confusion as many people are unaware that there are two ways to measure the purity of gold. One of these methods is carat and the other is fineness. We all are aware of carat but very few people know about fineness. According to the website of the World Gold Council, carat is the measure of purity of gold mixed with other metals. 24 karat gold is considered pure gold as no other metal is mixed in it. Fineness is another way of expressing the amount of gold in an item. It is expressed in parts per thousand. Therefore 24 carat gold should have 1.0 fineness (24/24 = 1.00) and 22 carat gold should have 0.916 fineness (22/24 = 0.916). However, in practice, gold is likely to contain small impurities as the precious metal can only be refined to a level of 999.9 parts per thousand. Such gold is classified as 999.9 purity (24 karat). Now the question arises which is better – 999 or 995 purity?
purest gold
According to our colleague ET, Vikas Singh, MD and CEO of semi-government refinery MMTC-PAMP, said, ‘995, 999 and 999.9 purity levels are international names used to define the purity of gold per 1,000 grams. At a weight of 1,000 grams of gold, a purity of 995 means you get 995 grams of gold with 5 grams of other metal. Similarly, 999 fineness means 999 grams of gold with 1 gram of other metal. Similarly 999.9 means that you get only 0.1 gram of other metal while the rest is pure gold. The difference between 995, 999 and 999.9 purity lies in the level of purity of the gold.’
According to experts, 999 fineness is the purest gold that one can buy. 995 fineness is considered standard gold. It is used for trading in MCX and international trading. Both 999 and 995 fineness are the purest forms of gold as they contain 99.90% and 99.50% pure gold respectively. No gold refinery can consistently produce gold purer than these levels.
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How expensive is 999 gold?
As the purity of gold increases, it becomes more expensive. This is why 24 carat gold is more expensive than 22 carat gold. Similarly, gold of 999 fineness will be more expensive than gold of 995 fineness, even if both are 24 carats. According to experts, international prices of 999 purity gold are usually 0.4% or half a percent higher than that of 995 purity gold. Therefore, even in the bullion market, prices of 999 purity gold are 0.4% higher than that of 995 purity gold.
Surendra Mehta, national secretary of India Bullion and Jewelers Association Limited (IBJA), says, ‘The difference in prices is based on the purity of gold. Suppose the price of gold of 995 fineness is Rs 100, then the price of gold of 999 purity will be 999/995*100 = Rs 100.40. Most goldsmiths do not sell 24 karat gold jewelry. Only bars, coins and bullion can be purchased in 24 karat purity. Singh of MMTC-PAMP says, ‘Gold of 999 purity is not hard to make jewellery. Therefore, 22 carat and less gold is used to make jewellery. This is because gold is mixed with other metals to increase hardness, flexibility and strength. However, 995 purity gold items in the market may include coins, bars, pendants and other jewellery.
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Suvankar Sen, MD and CEO of Senco Gold and Diamonds, says, ‘Jewellery is made only from 22, 18 and 14 carat gold. Typically, bars and coins are available in 995 and 999 purity. In general, 999 and 995 gold jewelery is only available in the form of bars and coins that can be worn as pendants on a chain.’ He told that 24 carat jewelery is very rare and special machines are required to make them. However, 23 carat jewelery is sold in some markets in Western India. Such jewelery is more culture-based and traditional and is available in smaller sizes and pieces. Mehta says that only gold coins and bars of 999 and 995 purity can be purchased.
What are the hallmarking rules for 24 carat gold?
The government has made gold hallmarking mandatory for 6 levels of gold purity from June 16, 2021. These include 14KT, 18KT, 20KT, 22KT, 23KT and 24KT. Furthermore, for 24 karat gold, 995 purity is used. “If 24-carat gold jewelery is purchased, hallmarking is mandatory,” says Mehta of IBJA. However, if 24 karat gold coins, bullion or bars are purchased, hallmarking is not mandatory.