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What Are Karats and Carats? The Buyer’s Guide

Table of Contents

One buddy delights in strong drinks, and does not desire other liquids in their glass. Your other good friend chooses blended beverages, with some alcohol and the rest soda, water, or a mixer, and so on

. The beverage youre making for them is nearly pure alcohol.

Now consider your other good friend, who keeps a slower pace with combined cocktails. You put a shot into a glass for them, and fill the rest of that glass with soda.

A piece of 24-karat gold is 24/24 parts gold. You can state all its parts are gold, or 100% of its parts are gold.


Ever hear someone describe gold as “five nines fine?” If so, youve heard an insider nickname for pure gold. Being as much as 99.999% pure, you can see where they get the name.

The number beside the word “karat” represents the number of parts out of 24 (24 = 100%) are gold. Have a look at the following chart for a breakdown of typical gold-to-metal ratios.

A karat is a measure of purity. Thats the sweet and short version.

Think of the strong drink as 24-karat gold, and the cocktail as 9-karat gold. The 9-karat piece is simply gold which contains a certain portion of another metal. Much like an alcoholic drink would consist of a determined portion of other liquids. The ingredients work as improvements. The only difference in between them is the ratio of gold to other metals.

[table caption=”” width=” 500″ colwidth=” 20 Karat/Fineness, Gold Content [Pureness] 24 karat,99+%.
22 karat/917,91.6%.
21 karat,87.5%.
20 karat,83.3%.
18 karat/750,75.0%.
15 karat,62.5%.
14 karat/583,58.5%.
10 karat/417,41.7%.
9 karat,37.5%.
8 karat,33.3%.
1 karat,4.2%.
As we can see, a piece of jewelry that is 18 parts gold and 6 parts silver is 18-karat gold, or 75% gold.
At the exact same time, a 14-karat piece of gold jewelry has 14 parts gold, and 10 parts silver (or another metal). This equates to 58.5% gold.

Both beverages are ready. One includes almost pure alcohol and costs more, and the other has alcohol combined with soda. The combined beverage isnt any worse– it tastes terrific!

In this industry, the words “karat” and “carat” get considered a lot. At the jewelry shop counter, no topic shows up as much. Its one of the most common questions we hear. If youve been buying fashion jewelry, you may have wondered yourself: what are karats?

The first thing to know is that “karats” and “carats” are different. We can forget carats, as they involve diamonds and weight. Karats are what were after, as they relate to gold.

The jewelry industry works the very same method.

Why is gold blended with other metals? Does that lower its worth?

You d anticipate the entire jewelry industry to favor 24-karat gold, but this isnt the case. Pure gold isnt perfect for making precious jewelry.

So, we understand jewelry experts blend gold with other metals to solidify it. Combined gold lasts longer, and is more effective at resisting damage. This permits you to wear your jewelry without worry of ruining it.

Its an excellent thing jewelry experts do this. Pure gold is difficult to take care of! If youre wondering how soft it is, ask yourself the following:.

To top it off, pure gold is susceptible to stain, and weakens when handled too often. This indicates that precious jewelry made from 24-karat gold can actually be less desirable than its equivalents! You normally only see 24-karat gold in bullion type as a result.

Have you ever seen an Olympic medalist bite their gold medal after winning it? Blended[/caption]

gold sells for offers a lot at the jewelry counter because itDue to the fact that more durable than resilient gold.
However its not simply the toughness of combined gold that sticks out. Mixing gold with other metals produces some quite nifty colors, too.

Gold can be found in various colors?

Jewelers use silver to bring a green-yellow, pale-green, or glossy white tint to the gold. It looks precious and so pristine, they make wedding event bands out of it!

You can see why a jewelry expert would mix gold with other metals. Youve seen all sorts of various gold mixtures previously, even if you werent mindful.

Bringing gold far from its natural, warm reddish-yellow glow requires blending it with other metals.
Copper emphasizes the reddish hues in a piece of ended up gold. This is often called “increased gold,” and is rather valuable.

Take a look at the graph below to see how including silver or copper to a piece of gold impacts its color. Pure 24-karat gold is at the top of the pyramid.

Is it really that basic?

Obviously! Gold karats, great weight, and closing prices can be dissuading. When it comes to jewelry, nothing puts off new buyers like the list of things to remember and understand about purity.

You have the responses to all the important questions: why is some gold white in color while other gold has a red hue? What is the distinction in between 9-karat gold and 22-karat gold?

Simply think about the strong alcoholic drink example if you discover yourself struggling. That could assist in a variety of different methods.

A piece of 24-karat gold is 24/24 parts gold. You can say all its parts are gold, or 100% of its parts are gold. Believe of the strong drink as 24-karat gold, and the combined drink as 9-karat gold. You have the answers to all the essential questions: why is some gold white in color while other gold has a red shade? What is the difference in between 9-karat gold and 22-karat gold?




Terms & Conditions

Trading in gold and other precious metals is risky because the market is volatile. Past performance is not indicative of future returns. This is why we encourage you to read Our Terms and Conditions carefully before making purchases, selling, or placing orders with BULLIONTRADING LLC. Refer to Safety Tips from the CFTC (Commodity Future Trading Commission). These terms and conditions apply to all orders, all purchases, and all sales made through our website, telephone, or other channels.

In the event you do not fully understand the terms of this agreement, BULLIONTRADING LLC strongly encourages you to consult with your own experts. BULLION TRADING enters into transactions with customers on the reliance and belief that clients are aware of, understand, and agree to these terms.

These terms and conditions are effective as of March 11, 2022, and are binding to all new and existing customers and users.


The prices for gold, silver, platinum and palladium coins and bars keep on fluctuating because of the risk factors that cause price volatility. The risk factors include political development, war, pandemics, demand, and supply. It is important to keep this in mind when transacting with BULLIONTRADING LLC.

The Ordering Process

BULLIONTRADING LLC. Does Not speculate on the prices of precious metals. This means that we don’t make profits by buying gold when the prices are low and selling when prices go up. BULLIONTRADING LLC generates revenue through premium spreads. This is the difference between what Bullion Trading LLC pays & sells these items for.

Orders and inquiries can be made through our website, phone, or other suitable channels. Contact Us for information.


Inquiries are made by customers who are not ready to transact immediately. Customers can contact us or go online at to get current market prices. The price quote and quantity available are subject to change. They can also contact us for guidance on buying and selling bullion coins and bars. You should note that the Price Quotations you receive when inquiring are Estimates because the prices of bullion coins and bars fluctuate daily, and the number of our stock changes all the time.

For example, The U.S Mint sets premium and minimum prices for American Eagles. Prices for American Eagles are determined by the current price of gold, silver, platinum, or palladium. The mint also charges a modest premium to cater to the cost of distribution and marketing. Consequently, the price of bullion coins and bars changes daily as the markets for gold, silver, platinum, and palladium fluctuates. Refer to the United States Mint’s Charges for Authorized Dealers.


Orders are made when customers are ready to transact immediately. The prices you get when ordering bullion coins and bars from us are an accurate reflection of the current market prices. Note that once you place an order, the prices are locked and are no longer subject to market conditions.

An order is placed when you finalized negotiations with our agents and an invoice is generated, not when the payment is made. Ordering and then bailing out or canceling after an invoice is generated makes BULLIONTRADING LLC incur losses. We incur losses because when you place an order, we consider the bullion coin or bar sold and will have hedged ourselves accordingly.

Disclaimer: To protect our company from losses, BULLIONTRADING LLC has implemented a Market Loss Policy.

Market Loss Policy Explained

An order starts when you finalize the deal with our agents, not when the payment is made. We generate an invoice immediately the deal is sealed either through our website or phone. We also count the bullion coin or bar as sold and will have hedged ourselves accordingly.

Customers who place orders, have invoices generated, and then cancel thereafter make us incur losses. To protect ourselves we have implemented a market loss policy. This means that you will incur penalties for ordering, having an invoice generated, and then bailing out. Once an order is placed, prices are locked and not subject to market conditions.

The moment you place an order an invoice is generated. If you cancel, and then gold prices decline you make us incur a loss. It is your responsibility to offset this loss if your order is canceled and your funds are returned. If this happens you will pay for the loss caused by a decline in the price of gold after a sale is made plus a cancellation fee of $35.00. This is our market loss policy.

To remain transparent and protect ourselves from risk we might require credit card information from every customer even if payment will be received through a different channel. We also will ask for immediate confirmation of the amount locked in. This gives us an avenue to compensate ourselves for losses in the event a customer places an order and then fails to pay.

However, if the price of bullion coins and bars stays the same, we usually don’t enforce our market loss policy because we don’t incur losses. If the price goes down we charge a market loss fee which is equal to the amount BULLIONTRADING LLC would have lost because of the unpaid order.


Bullion Trading LLC only accepts payments in the form of bank transfers, certified checks or personal checks. The method you use to pay us is determined by the number of bullion coins and bars you are willing to buy from us as follows:

  • Orders ranging from $1,000 to $5,500 should be paid via any option listed above and must be received within 2 business days from the time the order was made.
  • Orders ranging from $5,500.01 to $10,000 should be paid by bank wire, certified check, cashier’s check, money orders, or personal check, and must be received within 2 business days from the time the order was made.
  • Orders ranging from $10,000.01 to $25,000 should be paid by bank wire, certified check, and must be received within 2 business days from the time the order was placed.
  • Over $25,000.01 should be paid by bank wire and must be received within 1 business day from the time the order was placed.

If Using A Credit Card You Are Agreeing To The Following Terms:

  • I understand and agree that should I dispute the credit card charge through my credit card provider, I will have breached the contract as well as committed a credit card fraud.
  • I waive any charge-back rights. In the event of a dispute, and I request for a refund it must be made through the Bullion Trading LLC Arbitration Procedure described herein under Bullion Trading LLC.
  • Dispute resolution: I understand that all sales are final. There are NO EXCHANGES or REFUNDS.
  • I cannot receive a refund from Bullion Trading LLC, nor can I request the funds from my credit card company.
  • I also agree to waive any charge-back rights in the event of a dispute.


You agree that you have sufficient experience and knowledge to make informed decisions to purchase from and/or sell to BULLION TRADING LLC. You openly acknowledge that you are making all of your decisions in connection with purchases and/or sales. BULLION TRADING LLC is not making any decision on your behalf concerning purchases and sales.

You also openly acknowledge that you are subject to a variety of risks that are beyond the control of BULLION TRADING LLC. You openly acknowledge that BULLION TRADING LLC is not liable or responsible for the risks you incur while trading with us. Those risks include, without limitation, risks associated with the price volatility of bullion coins and bars. Market conditions or other disruptions such as technical problems may make it impossible for you to liquidate bullion coins and bars bought from us. You have the freedom to liquid the coins and bars at market prices acceptable to you.


All investments involve risk – bullion coins and bars are no exception. The value of bullion coins (e.g., American Eagles or Maple Leafs) is affected by many economic factors. The current market price of bullion coins and bars is determined by perceived scarcity and other factors. Some of these factors include quality, current demand, and general market sentiment.

The price of bullion coins and bars keeps on fluctuating and this means that they are not a suitable investment for everyone. Since all investments, including bullion coins and bars, can decline in value, you should make an informed decision. It is a good idea to have adequate cash reserves and disposable income before investing in bullion coins and bars.


You shall indemnify and absolve BULLION TRADING LLC and its affiliates, directors, officers, and shareholders collectively. You agree to compensate the indemnified parties for and against any costs, damages, expenses, liabilities, and obligations. They include without limitation to reasonable attorney fees that the Indemnified Parties may incur as a result of, or in connection with:

(a) Any breach of any representation or warranty made by you to BULLION TRADING LLC or,

(b) Failure to comply with these terms and conditions or the policies adopted by BULLION TRADING LLC.


You acknowledge that you are subject to the limitations of liability contained in these terms and conditions, the disclaimer, and other policies adopted by BULLION TRADING LLC.

If you suffer indirect, punitive, or speculative damages BULLION TRADING LLC is not liable to you. Any transaction between us and you pursuant to these terms and conditions, and any liability of BULLION TRADING LLC to you shall be limited to:

(a) The amount, if any, that you paid in such transaction or,

(b) $100 compensation. We are not, in any event, liable for any indirect, punitive, or speculative damages.


BULLION TRADING LLC has adopted a Privacy Policy that is included in these terms and conditions. Our privacy policy protects your identity and credit card information.

BULLION TRADING LLC privacy policies are found in the Disclaimer, Ordering Policy, and the protection of credit card information. These terms and conditions may be updated from time to time depending on the market forces and the legal landscape.


Upon any failure by you to comply with your obligations to BULLION TRADING LLC, the company shall pursue the rights and the remedies available to us. Either by law, through equity, or otherwise. It includes without limitation rights and remedies under these terms and conditions.

Breaching our rights may make BULLION TRADING LLC turn your account over to a collection agency, or a lawyer for collection. BULLION TRADING LLC will not fail in exercising any rights or pursuing any remedies in the case we suffer losses or damages.

Note: Failure by you to comply with these terms and conditions, may make BULLION TRADING LLC charge the credit card on which you have provided. This includes without limitation any and all market losses incurred by BULLION TRADING LLC, including cancellation fees, for ordering and then canceling at the last minute. You openly authorize BULLION TRADING LLC to charge your credit card for all losses caused by you violating our ordering policy.


BULLION TRADING LLC is an authorized dealer and a professional organization. We maintain a professional relationship with all our clients. We don’t enter into relationships such as agent-principal relationships, employee-employer relationships, franchisee-franchisor relationships, joint venture relationships, and partnership relationships with our clients.


You cannot forfeit these terms and conditions, your rights, or your obligations as they apply without the prior written consent from BULLION TRADING LLC. You may be granted permission to forfeit your rights or it may be withheld by BULLION TRADING LLC at its sole discretion. These terms and conditions shall be binding to all parties that trade with BULLION TRADING LLC.


If you violate these terms and conditions BULLION TRADING LLC will take action against you. It may include without limitation, turning your account over to a collection agency, or a lawyer for collection. You shall pay all of the costs and the expenses incurred by BULLION TRADING LLC, including without limitation to reasonable attorney’s fees.


BULLION TRADING LLC maintains professional relationships with clients. This is why we make sure that any grievances are resolved expeditiously. We agree that all disagreements and disputes with our clients should be resolved in accordance with the provisions below.

Because we value the relationship with our clients, we opt for arbitration or mediation as a channel for dispute resolution instead of going straight to state/federal courts. However, if arbitration or mediation fails, we may be forced to take legal action in state/federal courts in the State of New York.


These terms and conditions are governed by and interpreted in accordance with the laws of the State of New York. These terms and conditions do not take into consideration the possible violation of laws in other jurisdictions.




If BULLION TRADING LLC cannot perform any obligation hereunder as a result of any event that is beyond its control, the company shall be excused and shall not be liable for any damages as a result of, or in connection with, such delays, or such failures.


You shall sign and avail other documents, or take actions that assist BULLION TRADING LLC in enforcing the provisions of these terms and conditions.


Except as provided in these terms and conditions, all notices, and other communications to BULLION TRADING LLC shall be directed to it at 20 West 47th Street Lower Level #24, New York, NY 10036. All notices and other communications to you shall be sent by BULLION TRADING LLC, to the address that you provided to us at the time of your registration, or to the email address that you provided to us at the time of your registration.


BULLION TRADING LLC may record phone conversations between you and company agents or representatives. You consent to the recording of such phone conversations.


A decision or a failure by BULLION TRADING LLC to take action with respect to any non-compliance with these terms and conditions does not affect the ability of the company to enforce the terms and conditions with respect to other violations. Whether the violations are similar or dissimilar in nature.