How many carats is pure gold?

How many carats is pure gold? Here you’ll learn exactly what carat means, how many carats are considered “pure” gold, and why this matters when buying gold jewelry, coins, or bars. Whether you're investing or looking for a special piece of jewelry, having the right knowledge helps you avoid surprises and make informed choices about value and quality.

Overview: how much gold does each carat contain?

So how many carats is pure gold? The term “carat” indicates the percentage of pure gold in a coin, bar, or piece of jewelry. The maximum is 24 carats of pure gold, which equals 99.9% purity. The higher the carat, the purer the product. Physical gold investments often come in high purities such as 22 carats (91.6% pure gold) or higher.

Jewelry comes in various carat levels, depending on local regulations. For example, in the Netherlands, 8 carat (33.3% pure gold) and 9 carat (37.5% pure gold) may not legally be called “gold” due to the low gold content. However, in countries like Germany and the UK, these purities are accepted as gold.

In the Netherlands, 14-carat jewelry is the most common. This gold is alloyed with other metals, such as silver or copper, making it harder and more durable. These pieces are also more affordable than those made with higher gold content.

Carat levels in jewelry versus investment gold

Gold jewelry is available in various carat levels, indicating the percentage of pure gold in the alloy. For example, 18 carat consists of 75% gold. 14 carat, which contains 58.5% gold, is the most common in the Netherlands due to its strength and resistance to wear.

Carat levels below 14, such as 9 or 10 carat, contain less than 37.5% pure gold. In the Netherlands, precious metals below 14 carats may not legally be sold as “gold” due to insufficient gold content. This regulation helps prevent confusion and protects consumers from misleading labeling.

Which gold coins are the purest?

When it comes to physical gold investments, most coins are made with 22 carats or higher. Today, many investment-grade gold coins are minted in 24 carat gold, or 99.9% pure. Historically, coins were minted with 91.6% purity instead.

A well-known example is the Maple Leaf, which is now minted in 24 carat gold. In earlier years, it was minted in 22 carat gold. The coin weighed 34.05 grams, ensuring at least 1 troy ounce (31.103 grams) of pure gold. Another famous example is the world’s oldest gold investment coin, the Krugerrand, minted in 22 carat gold with 91.67% purity and 8.33% copper. That’s why the coin has a slightly different color than 24 carat gold coins.

What about gold bars?

All gold bars sold by The Silver Mountain are minted in 24 carat gold, or pure gold (99.99%). Additionally, all our gold bars carry the Good Delivery status, making them tradable worldwide.

What is investment gold according to the law?

Investment gold is exempt from VAT, unlike other types of gold such as coins used as currency. If you trade in investment gold, you are not entitled to deduct VAT. Investment gold must always be minted in high-purity gold, typically 24 carats.

Summary and tips for gold buyers

The term “carat” indicates how much pure gold a product contains. The highest possible is 24 carat gold, or 99.9% purity. Physical gold investments are typically 22 carats or higher. These gold items are VAT exempt. Want more information? Feel free to contact us!

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.

Sources:

• Belastingdienst, “What is exempt in the trade of investment gold?”, May 24, 2023.
• Belastingdienst, “What is investment gold?”, May 24, 2023.