Gold purity, fineness, and karat – what is it and how to check it?

Fineness expresses the purity of gold in parts per 1000. In other words, if an alloy was divided into 1000 parts, how many of them would be pure gold. For example, common gold fineness numbers 375, 585, and 750 indicate that in 1000 parts of that golden object there are 375, 585, or 750 parts of pure gold accordingly. 

It is interesting to note that what is gold in one country might not necessarily be gold in another. For instance, a piece of jewellery with a fineness of 333 will be considered golden jewellery in Germany, however, in Lithuania it will be marked simply as a metal since it does not have a substantial part of gold in it.

Once people hear the word ‘karat’ many straight away think of gems and diamonds, and reasonably so. Carat (with c) is a unit of weight used to measure the size of a gemstone. 

However, karat (with k) is a measurement indicating the proportion of gold in an alloy out of 24 parts. However, not all languages have such flexibility to separate them, so often the same word is used to describe both.

Instead of dividing an alloy into 1000 parts as fineness does, karats divide the alloy into 24, therefore you may often hear people talking about 18 karat gold, 24 karat gold, etc. Whether gold purity is measured in fineness or karats today often depends on the country. 

The colour of gold depends on other metals in the alloy. For example, gold of 585 fineness that has 36 per cent silver and 5,7 per cent copper will have a greenish tone. Meanwhile, gold of 585 fineness containing 18,3 per cent silver and 23,4 per cent copper will be pinkish, with even more copper – reddish, etc.

Gold by itself is a rather soft metal – therefore the purer the alloy the more brittle it is. The most common gold used in jewellery is that of 585 fineness – such gold is mixed with other metals and is tougher, suitable for everyday wear, for example in the form of rings. 

Despite that, pure gold (999,99 is the purest gold available) is the most expensive and desired out of all, also called investment gold. Such gold is purchased not for making jewellery but rather to preserve the purchasing power of money – it is a good alternative to fiat money for keeping savings and excess cash. 

To buy such gold online might be even safer than cheaper gold used for jewellery since investment gold is sold with certificates confirming its fineness and authenticity. Also, it is worth noting that VAT is not applied when buying investment gold. 

Since precious metals sales are inevitably shifting online, people must be more cautious than ever. Buying gold for securing the value of your savings is a common decision for many, especially during the times of economic crisis. However, before making purchases – do not rush, consult with experts, and purchase it only from reliable and trustworthy sources. When buying golden jewellery, check the hallmark in official assay offices, as only the experts can truly tell real precious metal from a fake one. 

And those that wish to purchase investment gold with all its certificates – can always to it via the Paysera mobile app. Even though via Paysera people buy gold online – all gold is kept in its physical form – coins and bars – and can be picked up at any time. However, keeping gold at home is not as secure as in protected official vaults. 

Either way, Paysera does not consult people about buying precious metals as a form of investment. For such consultations, you should reach out to an independent financial adviser.