Gold and Silver Purity

Gold and Silver Purity — Understanding 8K, 14K, 18K, 22K and 24K — Fineness Explained with 2026 Prices per Gram

Author: Paweł Kucharzak, Precious Metals Specialist, GoldInvest24 | 26 May 2026
Reading time: 7–8 minutes | Updated: May 2026

Every gold product carries a number — stamped, engraved, or printed on a certificate. It might read 585, 750, 916 or 999. In the Anglo-Saxon world, the same information appears as 14K, 18K, 22K or 24K. These figures describe how much pure gold the alloy contains, and the difference matters more than most buyers realise: a gram of 8-karat gold holds roughly EUR 42 worth of metal, while a gram of 24-karat fine gold contains approximately EUR 125. This guide explains both numbering systems, compares current prices per gram across all standard purities, and offers practical guidance on choosing the right purity for jewellery, bullion, or gifts.

Karats vs. millesimal fineness — two systems, one meaning

The karat system divides pure gold into 24 parts. A 24-karat item is pure (or near-pure) gold; an 18-karat item contains 18 parts gold and 6 parts base metal. The system has been used in the English-speaking world, the Middle East, and South Asia for centuries and remains the dominant standard in the United States, the United Kingdom, Australia, India, and the Gulf states.

Continental Europe and the global bullion market use millesimal fineness, expressed in parts per thousand (‰). A fineness of 750 means 750 grams of pure gold per 1,000 grams of alloy — directly equivalent to 18 karats. The conversion formula is straightforward: fineness = (karats / 24) × 1,000. Thus 14K = 583.3‰, rounded to 585‰ in European hallmarking standards.

Both systems describe exactly the same physical reality — the proportion of pure gold in the alloy. The remaining fraction consists of base metals such as copper, silver, palladium, or zinc, which influence the colour, hardness, and workability of the finished product. Rose gold, for instance, gets its warm hue from a higher copper content, while white gold typically contains palladium or nickel.

Gold purity chart — from 8K to 24K

*Approximate pure gold value at a spot price of ~EUR 125/g (May 2026). Values are indicative and fluctuate with the daily price. Retail prices for bars and coins include an additional dealer premium. Current rates: precious metals prices.

How much is a gram of 14K gold worth? Jewellery vs. bullion economics

A gram of 14-karat (585) gold contains 0.585 g of pure gold. At the current spot price of approximately EUR 125/g, that translates to a metal value of around EUR 73. However, the price a consumer pays at a jewellery shop is typically two to three times higher — reflecting design, craftsmanship, brand premium, and retail markup.

When selling 14K jewellery to a gold buyer, the equation reverses: most dealers pay 85–93 % of the contained gold value, meaning roughly EUR 62–68 per gram for 585-grade gold. The craftsmanship premium paid at purchase is lost entirely upon resale — it has no scrap value.

By contrast, a gram of 24-karat gold in a bullion bar costs approximately EUR 128–135 (spot plus a 2–5 % dealer premium) and can be resold at 97–99 % of spot. The buy-sell spread on the bullion market is typically 1–3 %, compared to 20–40 % for jewellery. This is the fundamental reason why those seeking to preserve purchasing power choose 999.9 fine gold rather than jewellery alloys — no VAT, no craftsmanship premium to lose, and global liquidity.

Silver fineness — 800, 925, and 999

Silver has its own set of standard grades, each with distinct applications. The most recognisable is sterling silver (925), which has defined British coinage and silverware for centuries — the name derives from the English pound sterling, historically minted from this alloy.

*Metal value at a silver spot price of ~EUR 2.16/g (May 2026). Silver is subject to VAT in most EU countries (margin scheme or full rate depending on form). Current rates: precious metals prices.

On the bullion market, only 999 fine silver is standard. All major silver coin series — Britannia (Royal Mint), Maple Leaf (Royal Canadian Mint), Kangaroo (Perth Mint), Philharmonic (Austrian Mint), American Eagle (US Mint) — are struck in 999 fineness. The American Silver Eagle was the last major series to switch from 900 to 999, making the transition in 2021.

Why 22-karat coins weigh more than 24-karat coins

This is one of the most common points of confusion among new precious metals buyers. A South African Krugerrand weighs 33.93 g at 22 karats (916.7 fineness). A Canadian Maple Leaf weighs 31.1035 g at 24 karats (999.9 fineness). Yet both coins contain exactly 1 troy ounce (31.1035 g) of pure gold.

The additional 2.83 g in the Krugerrand is copper alloy, which gives the coin its distinctive reddish tint and superior scratch resistance. At the market level, both coins are valued identically — by their fine gold content. The dealer premium may differ slightly: the Krugerrand, in continuous production since 1967, benefits from exceptional global liquidity, which often translates into a lower premium than newer series.

The same principle applies to the American Gold Eagle (22K, 33.93 g total, 1 oz fine gold) and the British Sovereign (22K, 7.98 g total, 7.32 g fine gold). The Sovereign carries a unique tax advantage in the United Kingdom — as legal tender issued by the Royal Mint, it is exempt from Capital Gains Tax (CGT), making it one of the most tax-efficient ways to hold physical gold for UK-based buyers.

Hallmarking — how gold purity is certified

Hallmarking is the process of officially certifying the purity of a precious metal item. The United Kingdom has one of the oldest hallmarking traditions in the world, dating back to the Goldsmiths' Company assay office established in London in 1300. Under the Hallmarking Act 1973, it is a criminal offence to describe an un-hallmarked item as gold in the UK (with certain exemptions for items below a weight threshold).

A British hallmark typically includes four elements: the sponsor's mark (maker), the fineness mark (e.g. 750 for 18K), the assay office mark (e.g. the leopard's head for London), and the date letter. Since 1999, UK hallmarks also use the international Convention mark — a set of scales in a shape that indicates the metal type.

Bullion bars and coins follow a different certification path. Instead of a national hallmark, they carry the refiner's or mint's markings: the company name or logo, weight, fineness, a unique serial number, and — for bars from LBMA-accredited refiners — Good Delivery certification. Many bars are sold in tamper-evident packaging (CertiPack or CertiCard), which serves as both a certificate and a security seal.

For verification purposes, three methods are standard. Visual inspection of the hallmark or mint markings is the first step. The acid test (touchstone assay) is a traditional method accurate to approximately ±10‰ but leaves a mark on the item. XRF spectrometry (X-ray fluorescence) is the gold standard for professional dealers — non-destructive and accurate to ±1–2‰.

VAT on gold — when is gold tax-free?

Investment gold is exempt from Value Added Tax across the European Union under Council Directive 2006/112/EC (Articles 344–356). The exemption applies to gold bars with a fineness of at least 995‰ and to gold coins minted after 1800 with a fineness of at least 900‰ that are or were legal tender in their country of origin and whose selling price does not exceed 180 % of the gold value.

This means that gold bullion bars (999.9 or 999 fineness) and all major gold bullion coins — Krugerrand, Maple Leaf, Britannia, Philharmonic, Kangaroo, American Eagle, Panda — are sold VAT-free. Gold jewellery (typically 8K to 18K) is subject to the standard VAT rate — 23 % in Poland, 19 % in Germany, 20 % in the UK (post-Brexit rules apply separately).

Silver, platinum, and palladium are not exempt from VAT regardless of fineness. In some EU countries, silver bullion coins benefit from a reduced effective rate through the margin scheme (Differenzbesteuerung), but silver bars are typically subject to the full rate. This tax asymmetry is a key reason why gold remains the preferred precious metal for long-term wealth preservation.

Gold purity around the world — regional preferences

Gold purity preferences vary dramatically by geography, shaped by centuries of cultural tradition, legal frameworks, and local economics.

United Kingdom and Australia — 9-karat (375) gold occupies a significant market share, particularly in everyday jewellery. This is the lowest standard recognised under UK hallmarking law. Higher-end pieces tend to use 18K (750), while 14K is relatively uncommon compared to the US or Germany.

United States — 14-karat (585) is the dominant jewellery standard, with 10K (417) as the legal minimum. The karat system is universal in American retail, and millesimal fineness markings are rarely seen outside the bullion trade.

India and the Middle East — 22-karat (916.7) and 21-karat (875) dominate. In these cultures, gold jewellery serves simultaneously as personal adornment and a store of wealth — hence the preference for the highest practical purities. India consumes approximately 700–800 tonnes of gold annually, making it the world's second-largest market after China.

China — 24-karat (999 and 999.9) dominates both the jewellery and bullion markets. Chinese gold bangles and necklaces in 999 fineness function much like bullion — priced close to spot with a minimal fabrication charge, and readily sold back to dealers at near-market rates.

Global bullion market — regardless of region, the LBMA Good Delivery standard requires a minimum of 995‰ for bars. All major coin series — Maple Leaf (999.9), Britannia (999.9), Kangaroo (999.9), Philharmonic (999.9), Krugerrand (916.7), American Eagle (916.7), Panda (999) — are accepted globally and priced by their fine gold content.

Choosing the right purity — a practical guide

Everyday jewellery — 14K (585) or 18K (750). These alloys offer the best compromise between gold content and durability. 14K is the most common choice in the US and Central Europe; 18K is preferred in Southern Europe, the UK's premium market, and for engagement rings worldwide. The choice between yellow, rose, and white gold concerns the alloying metals, not the purity.

Wealth preservation — 24K (999.9) exclusively, in the form of bullion bars or bullion coins. Reasons: no VAT, the lowest dealer premiums, global liquidity, LBMA standardisation, and straightforward verification. UK buyers should note that Sovereigns and Britannias are CGT-exempt as legal tender.

Gifts and milestones — Small gold bars (1 g, 2.5 g, 5 g) in certified blister packs make elegant, lasting gifts for christenings, weddings, graduations, or birthdays. Unlike cash, their value tends to grow over time with the gold price.

Building a precious metals portfolio — Experienced buyers often combine gold (stability, capital protection) with silver bars and silver coins (lower entry point, higher volatility). The gold-to-silver ratio (gold/silver ratio) helps assess the relative attractiveness of both metals at any given time.

FAQ — Common questions about gold and silver purity

1. What is the difference between 14K and 18K gold?

14-karat gold contains 58.5 % pure gold, while 18-karat contains 75 %. At the current spot price (~EUR 125/g), the difference in metal value is approximately EUR 21 per gram. 18K has a richer, warmer colour but is softer and more prone to scratching than 14K.

2. Why are bullion bars 999.9 and not 18K?

Bullion exists to store value, not to be worn — it does not need the hardness of an alloy. A fineness of 999.9 ensures VAT exemption, the lowest transaction costs (1–3 % spread), and compliance with the LBMA Good Delivery standard, which guarantees global acceptance and liquidity.

3. Is 9-karat gold real gold?

Yes — 9K (375 fineness) is legally recognised as gold in the United Kingdom, Ireland, and Australia. It contains 37.5 % pure gold. However, many countries set higher thresholds: the US minimum is 10K (417), and in France and Italy only 18K (750) and above qualifies as gold.

4. Does a Krugerrand contain less gold than a Maple Leaf?

No — both contain exactly 1 troy ounce (31.1035 g) of pure gold. The Krugerrand (22K) weighs more (33.93 g) because its copper alloy adds extra mass. The Maple Leaf (24K) weighs exactly 31.1035 g. Both are priced by their gold content, not total weight.

5. Are Sovereigns and Britannias tax-free in the UK?

Yes — as legal tender of the United Kingdom, both Gold Sovereigns and Gold Britannias are exempt from Capital Gains Tax (CGT). Additionally, as investment gold, they are VAT-free. This dual tax advantage makes them among the most tax-efficient physical gold options for UK residents.

6. How can I verify the purity of my gold?

The most reliable method is XRF analysis (X-ray fluorescence) — non-destructive and accurate to ±1–2‰. Professional precious metals dealers and assay offices offer this service. Alternatively, check the hallmark: in the UK, legally sold gold items must carry a hallmark from a recognised assay office (London, Birmingham, Sheffield, or Edinburgh).

7. What is the difference between troy ounces and regular ounces?

A troy ounce — the standard unit for precious metals pricing worldwide — weighs 31.1035 grams, approximately 10 % heavier than a regular (avoirdupois) ounce of 28.3495 grams. When you see gold quoted at a price per ounce, it always refers to the troy ounce. One kilogram equals approximately 32.15 troy ounces.