Gold is always considered the most trusted precious metal and has a long history regarding choice as an investment option. We can invest gold in different forms, like bars, coins, and jewellery. But it’s always challenging to choose 22k vs 24k gold coins as an investment option.
People wonder whether they should buy 24-karat gold coins or 22-karat gold coins. Which one is a better value? 24 karat gold coins contain 99.99% fine gold and are considered the purest form of gold. At the same time, 22k gold coins include 91.67% of gold, 5% silver, 2% copper, and 1.3% zinc.
What is 24 karat Gold Coin?
24k gold is the popular standard that most people recognize as pure and ideal. The weight of the 24k gold coin varies on the cash and the mint producing it. Most 24 karat gold coins are available in 1oz or a fraction of an ounce. The Canadian Maple Leaf, Austrian Philharmonic, Chinese Panda, and the US Buffalo are all 24k gold coins.
The 24k gold coin is always considered a good investment as it contains 99.99% pure gold. But it’s subject to easy scratches and is less durable than 22k gold coins, which consist of 91.67% gold. 24k gold coins have high principal value than 22k gold coins due to the high percentage of gold contained.
What is 22 karat Gold Coin?
The weight of a 22-karat gold coin can vary depending on the coin and the mint that produced it, but most 22-karat gold coins are sold in fractional ounce sizes such as 1/10, 1/4, 1/2 oz or even 1 oz. The mint or the dealer will specify the coin’s weight. It’s fortified with copper and a trace of silver and zinc to make the coin stronger and not easily damaged. Krugerrands, British sovereigns, pre-1933 gold coins, and the American Gold Eagle are all 22k gold coins. While the 24k American Gold Buffalo coin, for example, is a favourite among many, US Mint production figures reveal that the American Gold Eagle, a 22k gold coin, is in higher demand.
Difference between 22k and 24k gold coin
The primary difference when it comes to 22k vs 24k gold coins is the amount of gold contains. But there are other factors to consider before buying these gold coins. The following table shows the major differences between 22k and 24k gold coins:
| Parameter | 22k Gold Coin | 24k Gold Coin |
| Gold Contains | 91.67% | 99.99% |
| Fineness | Gold:91.67% Silver:5%Copper:2%Zinc:1.3% | 99.99% pure gold |
| Price | It is cheaper due to less percentage of gold present | Expensive than 22k gold |
| Durability | More durable because it is moulded with other metals | Less stable than different karat of gold coins |
Gold Composition of 22k and 22k Gold Coins
24 karat(k) gold coins are also known as pure gold coins, implying that it has not been tampered with. 24k gold coins are the purest gold coins available, with a purity of 99.99 per cent gold. It’s a vivid yellow with a lustrous gloss to it.
So, why is 24K gold coins 99.99% gold rather than 100% gold? Gold is exceptionally soft, malleable, and delicate in its purest form. Gold has a relatively low melting point so it can be easily shaped and formed into various objects. However, the purest form of gold is less durable than other forms of gold, such as 22-karat gold, which is alloyed with other metals. As a result, jewellers commonly add a small number of other metals to gold, such as silver, copper, nickel, and palladium, to make it strong enough to be used in jewellery.
22k gold coins, on the other hand, are made up of 22 parts gold and two parts other alloys such as silver, zinc, and copper, making them tougher, scratch-resistant, and more durable. Because of the impurities, 22k gold coins are more durable than 24k gold coins. Because 22k gold coins comprise 91.67 per cent pure gold, it is also known as “916 gold.”
Which is a More Valuable, 22k or 24k Gold Coin?
The value of the gold coin is determined by the percentage of gold coin present in it, the rarity, and the condition of the coins. The 22k or 24k gold coin both can be valuable. But the value can differ on the type of coin and the factor affecting its value.
Furthermore, due to their endurance, most serious investors choosing to trade or handle their coins choose 22k gold coins. 22k gold coins have a greater resale value due to these features.
Even at the same weight, though, 24-karat gold is fundamentally more precious than 22-karat gold. The only disadvantage is that it is more easily scratched and bent. Because of the greater value, it is a superior investment alternative. When it comes time to sell your gold, 24K pieces will be worth more than 22K choices.
Another factor to consider is that lower-purity gold coins are subject to higher taxes in some nations. This makes 24k gold coins easier to export internationally than 22k gold coins, which you should consider when deciding which gold to buy.
The best thing is to have some of both in your portfolio. Deciding between one or the other comes down to three factors:
- the demand and popularity of the coin,
- the prices and premiums with all tax implications considered, and
- preference.
Should You Invest in 22k or 24k gold coins?
When investing in gold coins, we should consider their primary differences. The only difference between the 22k and 24k gold coins is their amount of gold. 24-karat gold is pure gold, while 22-karat gold is alloyed with other metals. This means that a 24-karat gold coin will contain more gold by weight than a 22-karat coin of the same size. However, it is also softer and more delicate, making it less durable and more susceptible to scratches and other forms of damage.
Given its longevity, 22k gold is an excellent investment option, but it can’t compete with 24k gold’s high purity level. So, if you’re considering buying gold, go for 24K gold. It is a superior alternative that will supply you with much bigger rewards.
In the United States, 22k gold coins and 24k gold coins buy and sold for more or less the same price. The American Gold Buffalo coin generally has higher premiums, and the American Gold Eagle can give you back a higher premium when you sell it back to a local dealership. Differences in purity are only taken into serious consideration when looking to purchase gold coins outside of the US. Tax implications are the same in the US, but they vary from country to country. In Canada, for example, gold coins with a purity rating below 99.5% are considered taxable “scrap gold,” whereas pure 24k gold is not taxed. So while the 22k American Gold Eagle is the most popular coin in the United States, this is different in other countries.
There isn’t a huge difference between 24k gold coins and 22k gold coins, so you can choose what you prefer. Ultimately, deciding whether to invest in 22-karat or 24-karat gold coins will depend on your personal investment goals and risk tolerance. It’s important to research and consult with a financial advisor before making any investment decisions. What products are drawing you in the most? What do you have your heart set on?
Buy Gold Coins from Bullion Trading LLC
Bullion Trading LLC offers a diverse selection of gold bullion from famous precious metals refineries worldwide, including the US Mint, South African Mint, Royal Canadian Mint, and others.
All of our precious metal items are guaranteed to be genuine. We acquire them in bulk from reputable mints worldwide and sell them to customers without any markup or hidden fees.
If you have any questions about the gold coins, gold bars or other products, please contact us at 646-362-3536, and we will be happy to assist you. You can buy gold bullion from Bullion Trading LLC anytime during our business hours, Mon – Thu 8:30 AM to 4 PM EST and FRI 8:30 – 1 PM EST. Bullion Trading LLC offers easy online checkout and secure transactions. We hope you enjoy browsing our site!
Also, find out How Can You Know If Gold is Fake or Real?
