24K, 22K or 18K? The gold purity guide every Indian buyer needs

You're standing at the counter, and the salesman has laid two gold chains in front of you. They look almost identical. One is noticeably more expensive. "This one is 24 karat, sir — pure gold." The other, he says, is 22. You nod as if that settles it. It doesn't. What you've just been told is the single most misunderstood thing about buying gold in India — and getting it wrong can cost you, or leave you with a chain that bends in a month.

So let's clear it up properly, once, in plain language. By the end of this you'll know exactly what 24K, 22K and 18K mean, why the cheaper-looking number is often the right one to buy, and where the rest of your money quietly disappears between the rate board and the final bill.

What "karat" actually means

Karat (spelled carat in some places, but for gold it's karat with a K) is nothing more exotic than a fraction out of 24. Think of pure gold as a cake cut into 24 equal slices. 24 karat means all 24 slices are gold — 99.9% pure, nothing else. 22 karat means 22 of the 24 slices are gold and 2 are other metals like copper, silver or zinc. 18 karat is 18 slices gold, 6 slices other metal — so 75% pure.

That's the whole concept. The number before the K tells you how much of the metal is actually gold. Everything else — durability, colour, price — follows from that one fraction.

The three karats, and what each is for

24K (999) — the investor's gold. At 99.9% purity it is the most valuable per gram, but it's also soft — pure gold bends and scratches if you so much as look at it wrong. That's why you almost never see a 24K bangle. Its job is to store value: coins, bars, and digital or sovereign gold. If your goal is "park money in gold," 24K is what you want.

22K (916) — the jewellery standard. Mixing in about 8.4% of harder metal turns soft gold into something you can actually wear, set with stones, and pass down. This is why the overwhelming majority of Indian gold jewellery is 22K, and why "916" is practically a household word. It keeps almost all the value of pure gold while becoming durable enough for daily life.

18K (750) — the modern, hard-wearing choice. At 75% gold it's harder still, holds gemstones securely, and takes white-gold and rose-gold finishes beautifully. It costs less per gram because there's less gold in it — making it popular for everyday pieces, office wear, and intricate designs where strength matters more than maximum gold content.

Where your money actually goes

The rate board is only the start of the bill

Here's the part jewellers rarely volunteer. The per-gram rate you see — today's 22K at ₹13,230 — is the metal value. It is not what you pay. Two more things stack on top: making charges (the labour and design cost the jeweller adds) and 3% GST on the whole thing.

For a plain 10-gram 22K chain, the maths looks roughly like this:

This is the real lesson. On a simple chain or coin, making charges are small and the metal dominates. On an ornate bridal set, making charges can balloon to a third of the metal value or more — and you pay 3% GST on that labour too. The rate board tells you almost nothing about the final price of a heavily-worked piece.

So which should you buy?

Forget "purer is better." Match the karat to the job:

• Buying gold as an investment? Go 24K — coins, bars or sovereign/digital gold. You want maximum metal, minimum making charges, and an easy resale.
• Buying jewellery to wear and keep? 22K is the sweet spot in India — nearly pure, durable, and universally understood at resale.
• Buying daily-wear, office or stone-set pieces? 18K is harder, holds stones better, costs less per gram, and survives real life. Just know it has less gold in it if you ever sell.

How not to get short-changed

Three habits protect you at the counter:

• Insist on the BIS hallmark. Look for 999, 916 or 750 stamped on the piece — that's your purity guarantee. No hallmark, walk away.
• Ask making charges as a percentage, in writing. "Per gram" sounds small but adds up; a percentage lets you compare jewellers honestly.
• Check the day's rate before you go. Knowing today's 22K is ₹13,230/g (as of 30 Jul 2026) means you can sanity-check the metal portion of any quote on the spot, or run it through the gold calculator.

Gold buying in India was never really about the rate alone. But when it's your money on the counter, understanding what you're actually paying for — the purity, the labour, the tax — is the difference between a confident purchase and a hopeful one. Now you know which number to trust. NRI deciding where to buy? See whether it’s cheaper to buy gold in Dubai.