Welcome to Gold101.
We created this article as part of #OrientProTips to help everyone learn about the fundamentals of this famed yellow metal – Gold. This is a collation of some common questions we receive from our customers who are new to buying gold. We hope that the information will help you greatly in your gold appreciation journey!
Without further ado here we gold (go)…
Gold – where do we even begin?
The history of gold goes back as long as the history of human civilisation.
Gold has been closely linked to humans since at least 6000 BC.
Till today gold is a store of wealth special among other metals. It is an investment commodity and a hedge against inflation. Most countries in the world maintain large gold reserves to defend themselves against economic fluctuations. Asian cultures in particular love gold, regarding it as a safe haven asset for wearing and investment.
How is Gold Purity measured?
The purity of gold is measured using Karat.
“Karat” measures the ratio of gold to other alloys material in a piece of gold jewellery.
It is measured on a scale of 0 to 24. Its number varies in fractions depending on the gold content.
The higher the Karat number, the higher the purity level. The more gold there is and the lesser the other metal content.
#Pro-tip – What is the difference between Karat and Carat?
Karat (K) measures the purity of gold while Carat (C) refers to the unit of mass used to weigh precious stones.
What are the common Gold fineness levels?
24 Karat gold (99.9% purity) is Pure Gold
22 Karat gold (91.6% purity) is 916 Gold
20 Karat gold (85.0% purity) is 850 Gold
18 Karat gold (75.0% purity) is 750 Gold
14 Karat gold (58.5% purity) is 585 Gold
so on and so forth…
Most reputable fine jewellery stores in Singapore sell 14 Karat gold and above.
Since 1970 Orient Jewellers Singapore has always prided ourselves on our quality. We only sell 18 Karat gold and above.
#Pro-tip – Why are there different gold fineness levels?
Metal alloys are typically mixed with gold to increase its hardness, which makes the jewellery easier for craftsmen to work with.
How are the different colours of Gold formed?
Mixing other metals in gold alloy results in different colours.
Yellow gold has a metallic rich yellow colour.
Rose gold is formed by mixing copper into gold that gives its rosy hue.
White gold is formed together with nickel or palladium alloys.
What is Gold’s resale value?
Gold as a commodity has a value that depends on its purity level.
We at Orient Jewellers Singapore are traditional Asian Chinese goldsmiths.
Since 1970 we deal in gold jewellery. We buy and sell Pure and 916 Gold from our customers at the store’s retail gold rate and the trade-in store policy. The beauty of holding Pure and 916 Gold jewellery is that the jewellery holds and even increases in value. Tired of a particular design? Bring and sell the jewellery item back to us and use the cash to buy another updated modern design. This, our friends, is the beauty of gold.
Side note: We also sell 18 Karat Gold jewellery but these do not have any resale value because of its lower gold fineness levels.
What sort of Gold should I buy?
That depends on your objective.
If you are buying solely for investment buy Gold Bullion.
If you would like jewellery that retains its investment value buy Pure or 916 Gold. Traditionally in Asian cultures Pure and 916 Gold are given as part of wedding trousseau from families to brides. Read our Gold Si Dian Jin article for more information.
If you would like precious stone jewellery buy 18 Karat Gold. At Orient Jewellers Singapore our precious stone jewellery are typically made in 18 Karat Gold. 18 Karat Gold is considered an industry accepted standard for top quality gold fineness that is hard enough to set (and hold!) precious stones without losing its shape. At our store the different gold alloy colours described earlier (yellow, rose and white) are typically 18 Karat Gold.
Thank you for reading!
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