Which is Better for Investment – 22k or 24k Gold?

You’ve heard it said many times – invest your money in assets like gold. But they never really specify which variety of gold you should invest in, do they? Well, in this article, we’ll look at the two main versions of high-value gold and which of them you may want to invest in. In other words, we’ll be answering the question – should you invest in 22K or 24K gold?

It’s important to note that besides diamonds, there is no jewelry that is more beautiful than or as captivating as jewelry made of pure gold. Every time people talk about jewelry, they will mention ‘pure gold’ at least once, and though they may not know exactly what they are talking about – especially because most gold jewelry with the ‘pure’ tag isn’t really pure, anyone planning to invest in gold ought to understand the different types of gold, especially the ones regarded as financially sound investments. So, 24K or 22K gold?

 

Which gold is better, 24K or 22K?

Which is Better for Investment

 

Essentially, both the 22K and 24K gold are elegant and alluring precious metal pieces that are used in jewelry. These pieces magnify the wearer’s beauty, and they are associated with wealth and power, which is also the reason why you could never go wrong with solid gold jewelry or pure gold jewelry.

It’s also the reason why most of the high-quality pieces of gold jewelry are passed down as family heirlooms, which means that as much as people purchase gold jewelry for the metal’s beauty, there is more to it, with most of these buyers opting for the higher karat gold pieces because gold retains its value even in financial crises.

For most of these individuals, 22K and 24K gold are the only varieties of gold purchased. And if you are looking to invest in gold, these would be your option too. So, which is better – 22k or 24k gold?

To determine which of the two is better than the other, let’s start with the basics.

First, what does K stand for? K is an abbreviation for Karat, and it’s used to refer to the fineness of gold. Not that K shouldn’t be confused with C for Carat, which is a measure of the weight of gemstones like diamonds.

In this case, 24K jewelry signifies gold’s percentage purity, while 24-carat gold would be the weight of the gold piece rather than the purity level of that gold jewelry. When shopping for= jewelry, therefore, you should know that the K or karat has an implied meaning.

The K symbol (also kt) will be preceded by the purity rating of that jewelry piece. Some of the numbers used to denote the purity of gold are 10, 14, 18, 22, and 24. In most of the advanced nations of the world, jewelers have to stamp the gold jewelry with the karat rating for authenticity and identification.

Which is Better for Investment

So, which is better – 22k or 24k?

24K gold is a higher-karat gold and pretty much the purest form of gold at 99.99% purity – this is the highest level of pure gold you could buy. It is bright yellow, with an unmistakable shine. 22k gold, on the other hand, isn’t as pure as 24k gold, as it’s only 91.67% pure gold, and the rest of it is made of metal impurities like silver or copper.

Now, while gold is a naturally heavy precious metal that will not tarnish, it’s significantly softer than other metals. The softness makes it malleable. It’s also brilliant.

Since 24k gold has a negligible amount of impurities, it’s more valuable than 22k gold, even at the same weight. The only catch is that 24k gold would bend, scratch, and break easier than 22k gold (the 8.33% impurities in 22k gold make it more durable than 24k gold).

In terms of investment, however, the 24k gold would be a better option because you only need to buy the pieces of jewelry then store them. You wouldn’t be buying 22k or 24k gold rings and necklaces for everyday wear – it’s impractical and just too risky.

 

Which karat is gold best for investment?

Which is Better for Investment
24K gold

For investment purposes, the best option for you would be 24k gold. Although 24k gold isn’t durable and it scratches easily, it makes a great investment instrument because it’s made of 99.9% pure gold, which means it carries a bigger inherent value than 22k gold, which only has 91.67% gold. The only thing you should do when buying the 24k gold coins or bars is to ensure that it actually is a 24k piece. You’d want it tested and appraised by a renowned jeweler.

 

Is 22K gold a good investment?

While 22k gold doesn’t match 24k gold’s level of purity, it still is a good investment instrument. You can make good returns from investing in 22k gold because of the durability of this version of gold. But it shouldn’t be your primary investment vehicle, not when you have 24k gold as an option.

Which is Better for Investment

Which is better for investment 22k or 24k gold?

22K gold has 22 parts pure gold and two parts metal like copper, zinc, or silver. It’s also called 916 gold because of the 91.6% pure gold. This gold is harder than 999 or 24k gold. It’s also more durable and scratch-resistant.

As a result, it can be used to make jewelry that lasts, and it’s preferred by most people. All the features of 22k gold give it a higher resale value than 24k gold, which very delicate, hence its use in special jewelry and religious pieces, gold coins, and gold bars.

These differences make the two versions of gold ideal investment instruments. However, if you need to earn higher returns from your investments, later on, you should invest in 24k gold.

 

Gold jewelry investment tips

Which is Better for Investment

If you are going to invest in gold jewelry, you need to make sure that you know what you are doing. Here are some tips to guide your investment decisions:

  • Buy gold jewelry that is really nice to look at

The first thing you need to keep in mind when looking for jewelry to invest in is ‘is the jewelry stunning?’ ‘Will people want to have it?’

Make sure that the gold jewelry is something that you would either enjoy keeping or wearing, and also something that anyone would fall in love with.

Beautiful pieces are easy to sell, but even when you cannot sell them, they should be something you dread looking at.

 

  • Design, material, and value

To get the most out of the jewelry pieces, ensure that the quality is the best and the material worth a good amount of your money. Ask the sellers about the scrap value/ resale value of the piece, and ensure it comes with a genuine stamp for purity verification.

Which is Better for Investment

  • Have realistic expectations

Though gold and other precious metals are great investment vehicles, they are quite volatile, meaning some years will be better than others.

This means that you should only buy gold if you are looking for a long-term investment option and you don’t mind holding the gold when the prices dip.

This also means that you should research and beware of market changes at all times for you to know when to buy and when to sell or hold.

 

Conclusion

Gold jewelry isn’t always the best investment option, but it is a great option if you need to start small. Coins, Bars, and bullions are ultimately the best investment options. If you must invest in gold jewelry, we recommend 24k gold jewelry.

To know about more precious metals, please read here or here

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