What Does Carat Mean in Gold?

Discover what does carat in gold mean and how does it affect gold rates.
Gold loan
3 mins
31 August 2024
"Carat" refers to the weight of gemstones, such as diamonds, with one carat equalling 200 milligrams. "Karat" measures the purity of gold, with 24 karat representing pure gold. While "carat" is used for weighing gemstones, "karat" indicates the fineness of gold, often denoted as "K" or "kt."

How does karat differ from carat in gold?

The term "carat" in gold differs significantly from its use in gemstones. While both are spelt the same, they represent distinct concepts. In gemstones, carat refers to the weight of the stone, with one carat equalling 200 milligrams. The term measures the physical mass of the gemstone, crucial for determining its value. Conversely, in gold, "carat" (or "karat" in American English) measures purity. It defines the proportion of pure gold in an alloy out of 24 parts. For instance, 24-carat gold is pure gold, while 18-carat gold contains 18 parts gold and six parts other metals. Therefore, a carat in gold signifies purity, not weight. Understanding this difference is essential for those involved in jewellery, ensuring clarity when discussing the quality and value of gold versus gemstones.

What is carat gold?

Carat gold refers to the measurement of the purity of gold, indicating the proportion of gold in a particular alloy out of a possible 24 parts. The term "carat" is often used in British English to describe this purity level. Pure gold, which is soft and malleable, is considered 24 carats. However, in practical applications, gold is often alloyed with other metals to enhance its strength and durability. As the carat number decreases, the proportion of pure gold decreases as well, with common carat levels being 18, 22, and 24. For example, 18-carat gold contains 18 parts gold and six parts other metals, making it 75% pure. This measurement is crucial in the jewellery industry, as it directly affects the gold's value, durability, and suitability for different types of adornments.

Origin of carat

The origin of the term "carat" traces back to ancient times when the carob seed was used as a standard of weight in trade. The uniformity of these seeds made them an ideal measure for small quantities, especially in the trading of precious gemstones. Over time, this method evolved, and the carat became a universal unit of weight for gemstones, particularly diamonds. In the Middle Ages, the carat was standardised as 200 milligrams. The adoption of the metric system further cemented its use globally. The term was later adapted to gold purity, where it represents the proportion of pure gold in an alloy. Thus, "carat" carries historical significance, linking ancient trade practices to modern-day measurements in the jewellery industry.

The meaning of carat vs. carat in gold

The word "carat" has two distinct meanings depending on its context, especially in jewellery. When referring to gemstones, "carat" is a unit of weight, crucial in determining the value of diamonds and other precious stones. One carat is equivalent to 200 milligrams. On the other hand, in gold, "carat" signifies purity rather than weight. It indicates the amount of pure gold in an alloy, divided into 24 parts. For example, 24-carat gold is pure gold, while 18-carat gold consists of 18 parts gold and six parts other metals, making it 75% pure. Understanding these distinctions is vital for consumers and jewellers alike, as it directly impacts the value and characteristics of the gold or gemstones being purchased.

Purity and use of 1 carat gold

One carat of gold, equivalent to 1/24th of pure gold, represents a very low level of purity, containing only approximately 4.17% gold. Due to this minimal gold content, 1-carat gold is not typically used in jewellery or other fine adornments. Instead, it is often used in industrial applications where gold's properties, such as corrosion resistance, are needed, but high purity is not required. In contrast to higher carat golds, 1-carat gold lacks the lustre and malleability desired in fine jewellery. Therefore, it is not a standard for consumer gold products but can be found in certain technological components or specialised industrial uses where only trace amounts of gold are necessary.

How does carat influence gold value?

The carat of gold significantly influences its value, as it directly reflects the metal's purity. Higher carat gold, such as 24-carat, is pure and therefore more valuable due to its unadulterated content. Conversely, lower-carat gold, like 18 or 14 carats, contains a mixture of gold and other metals, reducing its purity and market value. The value of gold is also influenced by its weight, but the carat rating is crucial in determining how much of that weight is actually pure gold. In the jewellery market, higher-carat gold is preferred for investment purposes due to its higher purity, while lower-carat gold is often used for crafting durable, wearable pieces.

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.

Carat wise gold purity

CaratGold Purity (%)Common Usage
24 Carat99.9%Pure gold, ideal for investment, not typically used in jewellery due to softness.
22 Carat91.67%Popular in jewellery, particularly in India, for wedding ornaments and high-value items.
18 Carat75%Common in fine jewellery, balancing purity and durability.
14 Carat58.3%Used in more durable, everyday jewellery, popular in Western markets.
9 Carat37.5%Least pure, highly durable, and often used in budget-friendly jewellery.


Carat wise fineness

CaratFinenessGold Content (per gram)
24 Carat999999 milligrams of pure gold.
22 Carat916916 milligrams of pure gold.
18 Carat750750 milligrams of pure gold.
14 Carat583583 milligrams of pure gold.
9 Carat375375 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.

Frequently asked questions

What is the difference between carat and karat in gold?
The terms "carat" and "karat" in gold refer to the same concept of purity but differ in spelling based on regional usage. "Carat" is the British English spelling, used primarily in the UK and Commonwealth countries, including India, to indicate gold purity. "Karat," on the other hand, is the American English spelling. Both measure the proportion of pure gold in an alloy, with 24-carat or karat representing pure gold.

What is pure gold carat?
Pure gold carat refers to 24-carat gold, which is gold in its purest form, containing 99.9% gold with no other metals mixed. This carat level is highly valued for its purity and rich, yellow hue, but its softness makes it less suitable for everyday jewellery. Instead, it is often used in coins, bars, and high-end ornamental pieces. In India, 24-carat gold is considered ideal for investment purposes due to its high value and purity.

What does "carat gold" mean?
Carat gold refers to the purity of gold in a particular alloy, measured out of 24 parts. For example, 24-carat gold is pure gold, while 22-carat gold contains 91.67% gold, with the rest being other metals. The term "carat" in gold indicates how much pure gold is present, affecting its value, durability, and suitability for jewellery. In India, carat gold is a key factor when purchasing gold ornaments or making investments.

How does carat gold meaning impact its value?
Carat gold meaning directly impacts its value by indicating the purity of the gold. Higher carat gold, like 24-carat, is purer and therefore more valuable, as it contains a higher percentage of gold. Conversely, lower carat gold, such as 18-carat or 14-carat, has a lower gold content, making it less valuable but more durable. For Indian buyers, understanding carat ratings is crucial, as it affects the price and quality of gold jewellery and investments.

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