Gold Prices & Buying Gold
Gold Karats Explained: 24K vs 22K vs 21K vs 18K
A gold price is only meaningful once you know the karat. A gram of 18K jewellery contains a quarter less gold than a gram of 24K, so it should cost about a quarter less before making charges.
This guide explains what each karat means, how to price it from the published 24K rate, and how the different weight units used across the Gulf and South Asia convert.
Key takeaways
- Karat measures purity in 24ths: 24K is (almost) pure gold, 18K is 18/24 = 75% gold.
- To price any karat, multiply the 24K price by karat ÷ 24.
- Hallmarks show purity in parts per thousand: 999, 916, 875, 750, 585.
- 1 troy ounce = 31.1035 g; 1 tola = 11.6638 g.
Gold purity by karat
| Karat | Gold content | Hallmark | Typical use |
|---|---|---|---|
| 24K | 99.9% | 999 | Investment bars and coins; some jewellery in South and East Asia |
| 22K | 91.7% | 916 | Traditional jewellery in India, Pakistan and the Gulf |
| 21K | 87.5% | 875 | The standard for jewellery in Saudi Arabia and much of the Middle East |
| 18K | 75.0% | 750 | Gem-set and designer jewellery worldwide; popular in Dubai |
| 14K | 58.3% | 585 | Everyday jewellery in the US and Europe; officially priced in Dubai since 2025 |
| 10K | 41.7% | 417 | Budget jewellery, mainly in North America |
"Karat" (gold purity) is different from "carat" (a unit of weight for gemstones, equal to 0.2 grams). A 1-carat diamond set in 18-karat gold uses both.
How to price any karat from the 24K rate
| Karat | Multiplier |
|---|---|
| 22K | 0.9167 |
| 21K | 0.875 |
| 18K | 0.75 |
| 14K | 0.5833 |
Example: if 24K gold is 472 per gram, 21K is 472 × 0.875 = 413 per gram. The retail price then adds making charges and any VAT. See how this works in practice in our guides to buying gold in Dubai and buying gold in Saudi Arabia.
Get the live gold price, then use the karat multipliers in this guide to price any piece.
Live gold pricesPurity vs durability and colour
Pure gold is soft. Mixing it with other metals (an alloy) makes it harder and changes its colour:
- Yellow gold: gold with silver and copper. Higher karats look deeper yellow.
- Rose gold: a higher share of copper gives the pink tone.
- White gold: gold alloyed with white metals such as palladium, usually plated with rhodium for brightness.
- Hardness: 18K and 14K resist scratches and bending far better than 22K or 24K, which is why they are favoured for rings and gem settings.
Investing vs wearing
For pure investment, 24K bars and coins give you the most gold for your money because premiums are low. Jewellery is for wearing: making charges are usually lost when you sell.
Grams, tolas and troy ounces
World prices are quoted per troy ounce, Gulf shops quote per gram, and Pakistan and India often quote per tola:
| Unit | Grams | Where it is used |
|---|---|---|
| Troy ounce (oz t) | 31.1035 | International markets and the XAU/USD price |
| Tola | 11.6638 | Pakistan, India, Nepal and some Gulf shops |
| 10-tola bar | 116.638 | Popular bar size in South Asia and the Gulf |
| Kilogram bar | 1,000 (32.15 troy oz) | Wholesale and central banks |
A troy ounce is about 10% heavier than the ordinary (avoirdupois) ounce of 28.35 g used for food, a common source of confusion.
How to check what you are buying
- Look for the purity hallmark (for example 916 or 22K) and, where your country has one, an official assay mark. India, for example, requires a BIS hallmark with a 6-character HUID code on jewellery.
- Ask for the weight on a calibrated scale and an invoice that lists weight, karat and rate.
- Be wary of very low making charges paired with an unclear karat. Low purity is the easiest way to overcharge.
Frequently asked questions
Is 24K gold better than 22K?
24K contains more gold and is best for investment, but it is too soft for most jewellery. 22K is slightly less pure and much more durable.
Why is 21K gold cheaper than 22K?
21K contains 87.5% gold versus 91.7% for 22K, so each gram contains less gold.
How many grams are in a tola?
One tola is 11.6638 grams. Ten tolas are 116.638 grams.
What does 916 mean on gold?
It means 916 parts per thousand are gold, which is 22K.
Sources
This guide is general educational information, not financial, tax or legal advice. Figures were checked on the date shown and can change. Read how we research and review content in our editorial standards. Source: https://www.floatforex.com/guides/gold-karats-explained