Editor’s Note
As the festive season approaches, many consider purchasing gold. This article clarifies a common point of confusion for buyers: the crucial difference between ‘karat’ (purity of gold) and ‘carat’ (weight of gemstones). Understanding these terms is key to making an informed investment.
During Diwali or Dhanteras, when you go to buy gold, you might hear the term ‘karat’. The term ‘carat’ is also used. In such a situation, you must know the difference between karat and carat.
According to a report in Business Standard, karat (K) is used to indicate the purity of gold. Gold is divided into a total of 24 parts. This indicates how many parts out of 24 are pure gold. 24-karat gold is considered 100% pure. That means it contains no adulteration of any other metal. As the karat decreases, the amount of metals like copper, silver, or zinc increases. These metals make the gold stronger and help give it different colors.
Carat (Carat) is a unit for measuring the weight of diamonds and gemstones. Carat (ct) is used to indicate the weight of gemstones like diamonds, rubies, and sapphires.
The heavier the gemstone, the rarer and more expensive it is considered. However, its cut, color, and clarity also affect its price.
On the occasion of Dhanteras, most jewelers try to take advantage of the crowd of customers. Sometimes, shopkeepers charge a price higher than the actual market rate. Therefore, before making a purchase, be sure to check gold rates at different shops or online platforms. Keep in mind that the prices of 24-karat, 22-karat, and 18-karat gold are different, so it is essential to decide what purity of gold you want.
Nowadays, there are several ways to buy gold. These include physical gold (such as jewelry or coins), digital gold, or gold ETFs. If you are buying in the form of jewelry, always take a bill and carefully understand making charges, wastage, and GST. Online purchases offer more transparency, and sometimes you can get additional discounts when paying with a credit card.