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Guide to Buying Gold

Understanding gold terminology, its origins and usage is simple.
Let's start with some lay definitions of commonly heard terms.
PURE GOLD…99.9% gold. Refined to purge it of impurities. It is very
soft and of no practical use in the fabrication of jewelry. It is used for
some coinage and specialty mint pieces. This is referred to as 24-Karat
gold. Incidentally, it takes 350,000 ounces of gold bearing rock to produce
one ounce of pure gold. That's ten tons!
REAL GOLD…A term that is "generally" used to distinguish gold
that has a particular karat throughout as opposed to a film or plating over
some other metal. Also…SOLID GOLD.
KARAT…Refers to the amount of gold content in a "gold" item.
As an example, let's take a quantity of pure gold. It is referred to as
24-karat. Let's flatten it into a square, and score it like pieces of a
Hershey Bar. We divide it into 24 equal portions. We break off six segments
of the gold (25%) and replace them with equal portions of another metal,
zinc for instance. We melt this altogether to form an alloy. Since this new
creation is now only 18 parts gold (75%), we refer to it as 18-karat. So
when referring to any gold karat we are really telling the world what
portion of the alloy is gold in relationship to the whole. These terms have
metric equivalents more commonly used in other parts of the world. Listed
below are the ones most likely to be seen. Their metric counterparts are
included, along with some common uses.
24-Karat (999) Coins and electronics.
22-Karat (917) Coins, electronics and Baht jewelry.
18-Karat (750) Fine jewelry, not designed for everyday wear. Popular in
the Middle East and Asia.
16-Karat (667) Seen exclusively in dental applications.
14-Karat (585) Jewelry: especially in the United States. Provides good
looks and durability.
10-Karat (417) Jewelry: economical and popular for every day wear because
of its strength.
9-Karat (371) Minimum legal standard in Canada.
8-Karat (333) Minimum legal standard in Mexico.
PLATED…Gold that has been applied to the surface of another metal using
an electrical process. Generally distinguished on factory produced items
with the letters GE or HGE (Gold Electroplate or Heavy Gold Electroplate )
ROLLED…Gold that has been applied to the surface of another metal using
a process that does not require electricity. Most often seen on older
watches, the process usually involves great pressure. The thickness of the
gold is usually indicated in fractions of microns. 1/10th or 1/20th
is most common.
FILLED…Similar to rolled.
BAHT…A form of currency in Thailand, like dollar or peso, or mark. In
gold form, it is normally 22-karat rectangular shaped pieces, linked
together forming a chain. The size of the links and the length of the chain
determine the value. Imagine 100 pennies, 20 nickels, or 10 dimes strung
together. They would each equal one dollar, but their length would vary
dramatically. You could create a five or ten dollar chain too, but certain
size coin chains would prove more practical for some denominations than
others would. So it is with baht gold. Or so it was. Baht chains are still
popular, but the term has in recent years become corrupted. Catalogs now
sell "Baht" jewelry in forms that have little bearing on the
original term. More likely it now becoming synonymous with 22-karat gold.
Baht gold is almost never used with precious gems, because it is too soft.
Lacquers are often applied to flat surfaces to provide beautiful contrasts
in color and texture.
FOOLS GOLD…is not gold at all. It is a gold colored mineral found in
other rocks like gold often is. It is really iron pyrite and in relation to
gold is worthless.
"THE ACID TEST"…This is an expression that has entered
popular language and means the final proof, or undeniable. It comes from the
need to be able to quickly and positively determine not only if an item is
truly gold or not, but also what karat it is. One of gold's enduring
qualities is that it does not tarnish or oxidize easily. Nitric acid does
affect gold and when applied in different concentrations, can provide nearly
infallible answers to questions of karat.
"P"…The letter "P" may be found following the karat
designation on a jewelry item, i.e. 14KP. This stands for the word plumb,
which in this instance is an indication that the gold content is no less
than 14-Karat. An item may be legally stamped with a karat designation as
long as it is within a specific range, but to carry the "P", it
must be no less than what is stamped on it.
GRAMS VS. PENNYWEIGHT (g. vs. dwt.)…Two ways (no pun intended) of
weighing small, usually valuable items or where a fractional amount might be
important. This would be true of jewelry and pharmaceuticals, probably the
most familiar applications. A pennyweight is equal to 1/20th of a
troy ounce. A gram is equal to 1.555 pennyweights. Most scales designed to
function within these low ranges are easily switched from one to the other.
A pawnshop owner will use whichever is found to be most convenient.
If you have any jewelry questions,
just ask
our professional jewelers!
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