Gold has been the go-to hedge against currency, a hedge against inflation, and a hedge against economic uncertainty. But prior to investing, it is important to know what the various gold purities are and how they affect your investment goals. Our goal here at AU Bullion is to educate you as a consumer on how to buy gold bullion with confidence. Now, let’s get into the important aspects of choosing your preferred gold purity before buying any.

Understanding Gold Purity

The purity of gold is measured in karats (K) or as a percentage of pure gold. These are the most common gold purities:

24K Gold (99.9% Pure)

Description: The purest form of gold available in the market.

Usage: Due to its purity, it is a popular choice for gold bars and coins.

Pros: Very liquid, worldwide acceptance, and no alloy contaminations.

Cons: Softer and easier to scuff, making it less appropriate for jewelry.

22K Gold (91.6% Pure)

Description: Has 91.6% gold plus other metals such as copper or silver.

Usage: Used in jewelry and some gold coins.

Pros: Reinforced by alloying metals, retains a lot of its gold value.

Cons: Slightly lower gold content than 24K, which may affect resale value.

18K Gold (75% Pure)

Description: Gold content: 75% gold and 25% other metals.

Usage: Often used in fine jewelry.

Pros: More durable than high-purity golds, a nice balance of durability and value.

Cons: It has less gold content; therefore, it’s less valuable for investment purposes.

14K Gold (58.5% Pure)

Description: Consists of 58.5% gold and other alloys.

Usage: Mostly used for jewelry.

Pros: Very durable and inexpensive.

Cons: Let’s face it, those who want to have something of real gold value aren’t ideally represented.

How to Choose Gold Purity: Influencing Factors

Investment Goals:

If your plan is to invest for the long term, then your best bet would be to choose 24K Gold bullion. Due to its near-perfect purity, this is something that is accepted globally anywhere in the world. 

If 24K Gold is unavailable to you, then 22K Gold would be your second-best option. Since it is mixed with some other alloys, it makes it more durable yet still maintains a high purity for investment potential. 

Budget:

When it comes to investing in Gold, the higher the purity, the more expensive the precious metal gets. So, that is another important deciding factor for you choose, whether you want 24K, 22K or even 18K. 

Resale Value:

When it comes to selling your Gold, you will have a mich better resale value on 24K Gold than one with a lower purity. 

Usage:

For jewelry, lower purities such as 22K or 18K work better as they are more durable.

Investors should seek high-purity gold bars or coins.

Market Trends:

Keep an eye on gold prices and market trends. During times of economic insecurity, demand for high-purity gold tends to increase, leading to higher prices or interest in 24K gold.

A Comprehensive Guide of Benefits by AU Bullion

AU Bullion offers a variety of gold bullion products in varied purities to meet the requirements of every investor. We offer competitive pricing and top-quality products for all of your gold investments, whether you’re in the market for 24K gold bars, 22K coins, or other items. In addition, our clear and transparent buy-back policy ensures that you get the best value for your investment.

Final Thoughts

If you are planning on creating a successful gold investment portfolio, choosing the right gold purity is an essential step. Taking into account your own objectives, cash holdings, and outlook on the economy and market, you will be in a position to make an informed decision. At AU Bullion, we are here to help you with every step of the process.

Ready to invest in gold? Shop the full range of gold bullion selections now to begin protecting your financial future.