Definition of 24k Gold
The Federal Trade Commission (FTC) regulates and standardizes the gold rating markings within the United States. The content rating "24-karat" (24k) indicates the highest level of purity for gold. Gold bullion, coins or jewelry that bear this mark are not alloys, indicating that other metals have not been mixed in with this precious element.
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Characteristics
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Gold (symbol Au) is a yellow-colored element; 24k gold, the purest form, is a soft metal. Pure gold usually is not good for jewelry, because the metal can be easily scratched or damaged. Even though 24k gold has its drawbacks for ornamentation purposes, it normally yields more resistance to tarnish and corrosion if it is fashioned into jewelry.
Processing
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Because 24k gold is malleable, it is very easy to work into pieces of jewelry. Mixing pure gold with other metals to strengthen its quality is accomplished by pulling the gold through a jeweler's draw plate. Rolling mills that are designed for flattening metals for jewelry purposes are also used to create gold pieces. Pure gold can be annealed (a heating process) to create jewelry items; 24k gold pieces should be fused when joining them together with other pure gold objects.
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Karat Quality
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Karat rating should accompany any piece of jewelry that claims to be gold. A company that processes 24k gold will authenticate the gold's validity by affixing its trademark next to the karat rating.
It is not a legal requirement for jewelry to have a trademark listed on the piece. The FTC points out that a U.S. company should have a trademark listed next to the karat rating for gold bullion and coins. The agency strongly cautions against anyone taking gold bullion and coins that do not bear trademarks.
Karat Standard
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Gold is weighed with a universal measurement called a troy ounce, the standard unit of measure used to price precious metals. Karat is the term that is used to define the amount of pure gold contained within an alloy (two metals mixed together). The highest rating is 24k; once the gold is mixed with other metals, the rating is altered. An alloy rated as 18k indicates that 18 parts (75 percent) of 24 are gold.
Investments
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Because gold holds its value and generally is not affected by fluctuations within economic cycles, 24k gold is used for investment purposes. Pure gold is rare; that rarity helps it to retain its value. Gold bullion and coins are normally used for investment purposes. Gold bullion is fashioned in bars that are stamped for authenticity and reflect the actual price of gold at the time of purchase. Banks, central governments and institutions usually purchase gold bullion because of its extremely high cost. Gold coins are smaller versions of bullion and are easier to acquire and liquidate.
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References
Resources
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