Indians use gold abundantly. It is not only a wise investment option but also a great fashion accessory and a status symbol. Wearing gold and gifting gold is considered auspicious. You can see people wearing ornaments made out of this shiny, attractive metal for parties, festivals, weddings, and other important occasions. Taking a loan by pledging your gold assets is easy. Gold loans are disbursed very quickly and come with lower interest rates.

However, before you buy gold, you must know about its purity. There are various types of gold to choose from like hallmarked gold, KDM gold, and 916 gold. Knowing the difference between these three will help you choose the best in terms of gold purity, quality, and personal needs. 

What is Hallmark Gold? 

Evaluating the purity of gold and certifying it is called hallmarking. This is done by the Bureau of Indian Standards or BIS. The presence of the laser engraved, hallmark stamp on your gold jewelry indicates that it is aligned with the standards set by the BIS. It gives confidence to customers that the gold that they are buying is of the stated purity, strong, and durable. It is easy to resell hallmark gold as it is reliable and trustworthy in the market. For example, if you are buying hallmarked 14K jewelry, it means that 14 out of 24 parts is gold and the rest is alloy. The gold is checked in one of the 330 assaying centers of BIS located in various parts of the country. Here are the four components you must look at in the laser engraving of the hallmark seal. They are as follows: 

  • BIS Hallmark Seal: This laser engraving shows that the gold is completely pure and the purity has been authenticated at one of the BIS centers. 
  • Purity Mark in Karat: 
    • 22K916 (91.6% Purity)
    • 18K750 (75% Purity)
    • 14K585 (58.5% Purity)
  • The Assaying and Hallmarking Center's logo/number: The third mark is the hallmarking center’s logo or number, where the gold has been evaluated to check the purity. This logo is put so that the gold piece can be traced back to the center if any discrepancies arise.
  • Jeweller's Identification Mark: The jewellers or the manufacturers of the gold items also put their identification mark. 

What is KDM Gold? 

KDM gold is an alloy of gold and cadmium. It contains 92% gold and 8% cadmium. It retains the purity of base gold even after melting. Earlier, gold was fused with copper, and this alloy contained 60% of gold and 40% of copper. However, such alloys made the gold jewelry obtained after melting impure. To avoid this, KDM gold came into the picture. However, KDM jewelry was found to be detrimental to the health of people wearing it and the artisans who were working with it. For these reasons, it is now barred by the Bureau of Indian Standards. Alloys with advanced solder metals like Zinc and others are being used currently. 

916 Gold 

916 Gold is another name given to 22 carat (22/24) gold. It is basically used to indicate the purity of gold in the final piece. 916 Gold means 91.6 grams of pure gold in every 100 grams of the alloy. Similarly, 750 Gold is 18 carats - 18/24. 958 Gold is 23 carats or 23/24. Pure gold is too soft to make intricate jewelry. So,  916 gold or 22 carat is widely used to craft delicate gold ornaments throughout the country. It is considered most suitable for this purpose. 

How Do These Different Gold Types Impact Gold Rate?

Several factors like currency fluctuations, the Indian jewelry market, demand and supply dynamics, purity levels, etc. influence gold rates in India. Hallmarked Gold, which is certified for its high purity levels has high demand and contributes positively to gold prices. 916 gold is the best choice for making intricate golden jewelry and has steady demand. KDM with its advanced technology and soldering technique provides durability. This makes it a popular option for consumers and it contributes positively to demand and pricing. The market demand of these gold types determines gold prices in India. 

Conclusion

Hope that reading this article has helped you to understand how to ascertain the purity of gold and also differentiate between the various types of gold. Reading through this will help you make a smart choice on the type of gold to buy.

FAQs 

1. Which hallmark gold is better? 22 carat or 24 carat? 

The choice between 22 and 24 carat gold is based on your preferences. 24-carat gold is the purest with 99.9% gold component. Thus, it is a great investment option that will yield high futuristic returns. 22 carat gold contains 91.6% gold content and is highly durable. It is the best pick for making jewelry. Thus, 22 carat gold or 24 carat gold both are fine according to the need. 

2. How Can I verify if the jewelry store I am purchasing gold from is authenticated by BIS?

Go to the official website of BIS. Here, you can find a list of the jewelry stores licensed and authenticated by the BIS. The addresses and the contact details of these jewelers will also be given. 

3. Is KDM gold real or bogus?

KDM gold is not fake and it is real. It is prepared by soldering gold with a higher-purity gold alloy without the need for an external solder. It will have a seamless appearance while retaining the purity of the base gold. It is popular due to its resilience and purity. However, the BIS has banned it due to its adverse health impact on the wearers and the artisans who make it. 

4. How is the rate of KDM gold calculated?

The rate of KDM gold is computed by multiplying the current rate of gold by the weight of gold (in grams) and then adding making charges and GST. That is Rate of KDM Gold = Gold rate x weight of gold (gms) + Making charges + GST. One thing to keep in mind is that the price of gold is based on the quality and location. 

5. Which gold is most suitable for daily use?

22 carat gold is the most suitable for daily use. It can be used to make gold jewelry and ornaments. Two parts of other alloys are combined with 22 parts of gold which makes the texture harder and stronger. Thus, the jewelry is resilient and best suited for daily use.