When times get tough, gold tends to shine. That’s because gold is known for holding, or even increasing its value during periods of economic uncertainty. Unlike many other investment assets, gold tends to perform well when markets are under pressure.
Take the 2008 financial crisis as an example. While global stocks plummeted, gold prices surged, climbing from USD730 to USD1,300 between October 2008 and October 2010. Similarly, gold hit an all-time high of around USD2,070 per ounce during the peak of the Covid-19 pandemic in August 2020.
This is why gold has earned its reputation asa safe haven, and why many investors include it in their investment portfolios for stability and diversification.
Today, there are numerous ways you can invest in gold, from physical gold like coins, bars, ingots and jewellery, to digital gold, gold ETFs and gold futures.
But before you rush off to your nearest goldsmith or click “buy”, remember that not all gold is created equal. For instance, do you know the difference between 24k and 916 gold? Or how white gold compares to yellow or rose gold? Each type has its own unique characteristics and value.
So, read on and you’ll be an expert by the time you are done!
How Pure Is Your Gold?
At first glance, all gold might look the same. But dig a little deeper, and you’ll find that there's a lot more to it!
Gold purity helps you identify just how much actual gold is present in a piece of jewellery or coin.
It’s measured in karats (K); the higher the karat number, the purer the gold. Different karat levels indicatedifferent properties, making each type suitable for specific purposes.
The purest form of gold is 24 karat (24k), which is 99.9% pure and typically stamped as 999. Due to its high value and bright yellow colour, it is often made into bars, ingots and jewellery.
(Fun fact: 100% pure gold doesn’t exist because it’s nearly impossible to remove every trace of impurity from gold.)
22K gold (also known as 916 gold), contains 91.6% pure gold and is mixed with small amounts of other metals, making it stronger and more durable. This makes it a popular choice for jewellery. Lower karats like 18K, 14K, and 10K contain less pure gold and more alloys to boost strength and affordability. For example, 18K gold contains approximately 75% gold while 14K and 10K contain about 58.5% and 41.7%, respectively.
Then there's the form your gold comes in. For investment purposes, gold is most commonly bought as bars or coins, as they are valued for their purity, weight, and ease of resale. Jewellery, while beautiful, often comes with a higher price tag. You're essentially paying more per gram due to design, craftsmanship, and branding. On top of that, jewellery can lose resale value if it has visible scratches, dents, or signs of wear.
It goes beyond yellow
When you think of gold, the classic golden-yellow hues probably come to mind. I mean, that’s where gold-en came from, right? But today, you can find gold in a variety of colours and shades.
The colour of gold depends on the types of metals it's mixed with. These mixtures not only change how the gold looks, but also affect its durability, and suitability for different styles of jewellery.
Here’s a look at the most popular gold colours and what sets them apart:
Yellow gold is the most traditional and timeless form of gold. It'salso the closest in appearance to gold’s natural state, which makes it a popular choice for classic and heirloom jewellery.
White gold, on the other hand, is a modern favourite. It’s made by mixing pure gold with white metals like nickel or palladium and is usually coated in rhodium to enhance its shine and scratch resistance.
Rose gold has become increasingly popular in recent years for its romantic, vintage-inspired look. It's made by blending gold with copper, which gives it a distinctive warm, pinkish tone.
What’s really inside your gold?
Just like with people, what’s on the inside counts. Solid gold items are made entirely of gold (or gold alloy), which makes them more valuable.
Gold-plated pieces, on the other hand, have only a thin layer of gold on the surface. Underneath it, you’ll usually find a base metal such as copper or brass. This makes them more affordable. But keep in mind that the thin gold layer can wear off over time, especially with regular use, eventually revealing the metal underneath. Because of this, gold-plated jewellery have shorter lifespans compared to solid gold and require more careful handling.
Gold-filled items fall somewhere in between. They have a much thicker layer of gold compared to gold-plated pieces, which makes them far more durable and resistant to wear. This gives them the best of both worlds – more affordable than solid gold, and sturdier than gold-plated jewellery.
Always buy from reputable sellers
Whether you’re buying gold as an investment or simply to treat yourself to some stylish new bling, knowing your gold is a smart move. But even with all that knowledge, it won’t mean much if you end up buying from a sketchy seller.
Let’s be honest – most of us won’t be able to tell the difference between 18K and 24K just by looking at it. And not all gold pieces come with clear stamps or certifications to prove their purity. That’s why it’s important to buy from reputable sellers.
A trusted seller not only ensures you’re getting genuine gold, but also gives you peace of mind when it comes to quality, pricing, and resale value. So whether it’s a gold coin, a bar, or a shiny necklace, do your homework and choose a seller who knows their gold as well as you do.
