What is Gold?

What is Gold?

Frequently Asked Questions
What is Gold?
The word Gold derived from the Latin word ‘Aurum’ means Glowing Dawn. It is a rare metallic element and very useful for mankind. It does not react with water or oxygen.
Gold is measured in Carats. What is it?
Carat was a unit of mass used by ancient merchants in the Middle East. It has been used as a measure of purity for Gold and the jewelleries made out of it. Pure Gold is designated 24 carat. The following chart will illustrate the purity and caratage of Gold:

Caratge Fineness %Gold
24 1000 100
22 916.7 91.67
18 750 75
14 583.3 58.3
10 416.7 41.67
9 375 37.5


For Jewellery manufacture what cartage is being used?
In India jewellery is made of 22 ct. Gold. In the international market gold alloys of different caratage are popular. For example in Europe it is 18 and 14. In USA it is 14 cts dominates. In middle east also 22 cts is popular. In china almost 24 cts. jewellery is popular.
What are the alloys used in Gold?
Silver, Copper, Palladium and other metals. Since the 100% Gold is extremely soft these alloys should be added to give hardness and strength to the products made out of it.
What is the Colour of Gold?
Pure Gold is a deep yellow colour and that’s why it has been called as yellow metal. However different colour can be accomplished on Gold by formation of special Gold Metal compounds or by a surface coating.
What are the other Colours in which Gold is available?
Colours Features
White By varying the alloying metals.
Violet Combination of Gold and Aluminium i,e 79% gold
Blue Combination of Gold and Indium i,e 46% Gold
Black Gold Application of Electroplating solutions based on rhodium or ruthenium with special additions.

These shades will have 18ct. or below purities

What is to be done to ensure the purity?
In many countries the law requires that every gold jewellery should be stamped with its caratage. Hallmarking is suggested to ensure the quality of the product.
What is Hallmarking?
Hallmarking is a mark of conformity and additional confidence to the consumer on the purity of the Gold jewellery. This is a licence granted to a manufacturer under which he is entitled to stamp the products with the hallmark design.
Whether products in India are Hallmarked?
In India, the Government has identified Bureau of Indian Standards (BIS), to operate this system. Currently hallmarking is voluntary in nature. Manufactures desiring to obtain the registration should complete the prescribed procedure. The licenced manufactures can stamp the BIS Hallmark designs on their products.
10 How the Gold is priced?
Gold price always depends on trends in international economic and political situations. Volatility in Forex market i,e variations between USD and other currencies, Crude oil prices, political situations etc have a major influence on the gold price.
11 What is the scope for Gold as an investment?
Gold is an excellent hedge against inflation, and protects earnings for the future. Modern investors can invest in gold the traditional way – by purchasing gold bullion in the form of bars or coins – or they can trade in gold or gold futures electronically, or by investing in gold mining or refining companies.