Gold Purity Matters: Understanding Karats and Pricing

When it comes to gold, its purity is measured in karats. The choice of purity depends on how the gold will be used.

The purest form of gold is 24K, which contains 99.9% gold but is too soft for making jewelry. On the other hand, 22K gold, which contains 91.6% gold, is a standard in traditional Indian jewelry and is alloyed with other metals to increase its durability.

The prices of gold can be influenced by global macroeconomic trends, geopolitical conditions, and currency movements. As time-tested safe-haven assets, both gold and silver typically see increased demand during periods of high inflation, economic recession, or global crises as investors seek to protect their wealth.