How Purity Affects the Value of Your Gold?

Date of Published: June 29, 2024


When evaluating gold purity several things come to mind. Like is your gold pure enough and how much impurity it has. After all, when you buy or sell gold, understanding the purity is an important factor. The purity of gold is measured in karats and plays a vital role in investment decisions. High-purity gold pieces are a valuable investment offering good returns. If you need some quick cash, you can liquidate your gold reserves. 

This blog will delve into the concept of gold purity and explore its impact on the price. If you are planning to sell your gold in Hyderabad then you are in luck. Today we will give you an insight into the gold buyers of Hyderabad.

What is Gold Purity?

Gold purity refers to the proportion of pure gold present in a piece of jewellery or bullion. As previously discussed, gold purity is calculated in karats and is abbreviated by the letter ‘K’. A 24K gold has a purity of 99.99 per cent and is the highest attainable purity. 

Why not 100 percent pure gold available? Well, because 100% per pure gold is too soft for everyday use. So it is often alloyed with minute quantities of other metals like copper, silver, or nickel. This enhances its durability and along with that usability. There are different karat values of gold available in the market. Such as 22K, 18K, and 14K all with different levels of purity. For example, 22K gold is 91.7% gold and 8.3% other metals. Similarly, 18K gold is 75% gold and 25% other metals. Understanding these differences is essential for anyone. Especially, during the buying and selling of gold. This is because different karats have different market values that change with time.

Other Strategies to Ascertain Gold Purity Apart from Calculating the Karats

Another strategy to measure gold purity is the millesimal fineness method. This process expresses the purity in parts per thousand. For example, 18K gold has a fineness of 750, indicating that it contains 750 parts of pure gold out of 1000. 

An easy way to check gold purity is to look for hallmarks on your jewellery or bullion. Hallmarks indicate the gold’s karat value and the manufacturer’s mark. These marks ensure authenticity and help in assessing the gold’s purity and value.

What are the Factors Affecting Gold Price?

We already know that karats or gold purity affect its market valuation. But how? Let’s explore some of the key points:

  1. The purity level: 24 Karat gold has the highest purity and is the costliest. The lower the karats, the lower the purity as a result you pay less for these golds.
  2. Amount of Gold: The cost of gold jewellery is not only measured by its purity but also by its weight. In other words, 22-karat gold can be worth more than 24-karat gold if its weight is more than 24-karat gold.
  3. Market value: This is one of the most fluctuating factors determining the price of gold. The market price of gold falls up and down with time. During economic turmoils, the stock market and the currency fall as people lose confidence in the economy. Investors start withdrawing money and investing in materials of absolute value like gold. Thus, the price of gold rises. Again, when the conditions are stabilized the gold price gets normalized.
  4. Design and Craftsmanship: Aesthetic designs and high-quality artistic works often precede the material value of the gold. Then the price of the gold object is essentially due to the brilliance of the handwork of the artist making it. Additionally, the brand value of the manufacturer adds to the price of the gold. Such brands are a testament to high-quality products and good design works.

By understanding these factors, you can better appreciate the dynamics affecting gold prices. This will help you make informed decisions while buying or selling gold. Once again knowing the gold purity is of paramount importance while you are evaluating your gold collection or selling gold. If you know your gold valuation no one can rip you off your money at any time.

In general, people have a lower tendency to buy 14 or 18-karat gold. Most go for 22 or 24-karat gold as higher purity gold is a better investment option. The value of gold might not go up and down like stocks or cryptocurrencies overnight. It is a low-risk, low-volatility investment where the value rises slowly but surely over time. 


Knowing the purity of gold is extremely necessary whenever you go for buying or selling of gold. A word of advice would be to always go for hallmark gold products as they offer surety on the purity of gold. If you ever go on to sell your stuff, a hallmark gold product will always fetch you higher prices. High-purity gold offers stable financial support, especially during economic uncertainties. Speaking of which are you planning to sell your gold in Hyderabad? Have you heard about Value Gold? They are one of the best gold buyers in Hyderabad. There you will get the best value for your gold. What’s more, you get to see how exactly they are determining the gold purity right in front of your eyes.

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