22K vs 24K gold for investment — which should you buy?
Indian households hold an enormous share of their savings in gold, and most of it is 22K jewellery. If your goal is wealth rather than adornment, that is usually the wrong instrument. Here is the comparison without the sales gloss.
Head to head
| 24K (999.0/999.9) | 22K (916) | |
|---|---|---|
| Purity | 99.9%+ | 91.6% |
| Making charge | 2–3% on bars | 15–55% on jewellery |
| Wastage | Nil on bars | Often 5–12% |
| Resale spread | Narrow | Wider — labour is not recovered |
| Durability to wear | Softer | Better for daily wear |
| Best for | Investment | Wearing |
Why jewellery is an expensive way to own gold
When you buy a 22K ornament you pay for gold plus making plus wastage plus GST. When you sell, you are paid for gold only, at 91.6% fineness. Everything else was a one-way cost. On a piece with 40% making, gold has to rise substantially just to return you to break-even.
Where 999.0 jewellery fits
There is a middle path most of the market ignores. ABRAF makes 24Kt 999.0 jewellery — wearable pieces at effectively bullion purity. You give up a little hardness versus 22K, but you own 99.9% gold instead of 91.6%, so far more of what you paid survives into resale.
A practical allocation
- Core holding: 999.9 fine bars, 10g or 100g — lowest cost per gram of pure gold.
- Regular accumulation: a gram-based savings plan, which averages your buying rate over the year.
- Wearable: 999.0 or 22K pieces you genuinely intend to wear.
Gold prices fluctuate and can fall; this is general information, not investment advice. What we can promise is transparency on the two things you control — purity and charges.