Gold Investment Guide: Which is better to invest in 18K vs 22K gold? (2024)

FAQs

Gold Investment Guide: Which is better to invest in 18K vs 22K gold? ›

Thus, whenever you're purchasing gold for investment purposes primarily, it is advisable to opt for higher purity such as around 22k as it carries an intrinsic value and will be hypoallergenic compared to 18k or 14k gold. If you prefer to get a pure set of gold, then 22k should be your best choice.

Durability and Strength: Due to its higher purity, 22K gold is softer and more malleable than 18K gold. This makes it more prone to scratching and bending, especially in intricate jewelry designs. On the other hand, 18K gold is more durable and resistant to wear and tear, making it a better choice for everyday wear.

In case you want to buy gold as an emergency fund or investment (or probably for diversifying your portfolio), then you should opt for 24K gold. It contains 99.9% gold while 22K contains 91.7% gold. When you buy a 24K gold bar or coin, make sure there it has hallmark certification for ensuring its purity.

When it comes to cost, 18k gold is usually less expensive than 22k gold since there are fewer pure gold content in 18k gold. However, 22k gold has a higher resale value and is more resistant to tarnishing due to the higher content of pure gold.

Disadvantages: 18k gold carries a higher price tag than 10k or 14k gold and is far less durable. You might end up scratching or scuffing it just through normal daily wear. For this reason, it's not frequently used for rings.

Instead, the average gold investor should consider gold-oriented mutual funds and ETFs, as these securities generally provide the easiest and safest way to invest in gold. Larger investors seeking direct exposure to the price of gold can buy gold directly through bullion.

In general, smaller gold bars, like those weighing less than an ounce, can make sense for those looking for an easier way to invest in gold. "Small gold bars are easily transportable and highly liquid, which makes them great for buying and selling quickly.

If you want to invest in gold jewelry

The piece should be made out of solid gold, and not just be plated. It should be made in preferably 14K, and over. Most gold is appraised by weight, so the more significant and denser the piece, the higher the price you should expect to pay, and to earn when you sell.

Is 18K gold a good investment? ›

18k gold mainly contains 25% metal to make it strong and durable, with 75% pure gold which also makes them a good investment. As gold has the power to retain its value over time, storing wealth in 18k gold jewellery can be a reasonable investment.

24k gold tends to have much higher resale value. If you're looking to invest in gold, or if you want a family heirloom that will retain its value for many generations, 24k may be the ideal option.

While 14k may be the best all-around type of gold for value, quality and durability, definitely consider 18K for its purity and rich look and feel. An engagement ring in 18k gold conveys quality and exclusivity. It is also durable enough for daily wear for most people.

The best place to buy physical gold depends on whether you want to buy bars, coins or jewelry. While you can buy gold bars from certain banks, it's much more common to use online dealers. You may also be able to buy gold bars from a pawn shop or individuals, and these sources may also offer gold coins.

Investing in a gold stock, ETF or mutual fund is often the best way to get exposure to gold in your portfolio. In order to buy a gold stock or fund, you'll need a brokerage account, which you can open with an online broker (here's a step-by-step guide to opening a brokerage account).

18 Karat Gold

18k Gold is 75% gold mixed with 25% other metals like copper or silver etc. Usually studded jewellery and other diamond jewellery such as diamond rings is made with 18k gold. The 18 Karat gold is less expensive compare to its superior options such as 24k and 22k gold.

Long-lasting Value and Durability

Despite its softness, 22K gold exhibits a remarkable durability that contributes to its enduring value. While it may be more malleable than lower karatages, careful craftsmanship can create sturdy and resilient pieces suitable for daily wear.

22k gold is widely used to make regular jewellery and ornaments. Two parts of other alloys are mixed with 22 parts of gold which make the gold texture harder. This makes the jewellery durable and ideal for regular wear purposes.