Gold Karat Explained: 24K, 22K, 18K and What They Mean for Raw Gold

What Is a Karat?

A karat (abbreviated K or kt) is a unit of measurement for the purity of gold. The scale runs from 1 to 24, where 24 karat represents pure gold (99.9%+ pure).

Formula: Purity % = (Karat ÷ 24) × 100

The Common Karat Standards

| Karat | Purity (%) | Common Uses | |-------|-----------|-------------| | 24K | 99.9%+ | Investment bars, bullion, electronics | | 22K | 91.6% | High-quality jewellery (India, Middle East) | | 21K | 87.5% | Jewellery (Gulf countries) | | 18K | 75% | Fine jewellery (Western markets) | | 14K | 58.3% | Affordable jewellery | | 10K | 41.7% | Minimum 'gold' standard (USA) |

What Karat Is African Raw Gold?

Raw gold from the DRC and Uganda is not a standardised karat product. It is natural gold mixed with silver, copper, and other trace metals in proportions determined by the geology of the deposit.

Typical purity ranges:

• Maniema, DRC (alluvial): 88–92% (equivalent to ~21–22K)
• Ituri, DRC (hard rock): 85–90% (equivalent to ~20–21K)
• Mubende, Uganda: 88–93% (equivalent to ~21–22K)
• Busia, Uganda (alluvial): 82–88% (equivalent to ~20–21K)

Why Purity Matters for Pricing

Since raw gold is priced as a percentage of spot based on its actual gold content, purity directly determines value:

Example: 1 kg of raw gold at 90% purity at $3,300/oz spot:

• Pure gold content: 900g = 28.94 troy oz
• Value at spot: 28.94 × $3,300 = $95,502
• Minus 8% raw discount: ~$87,862

The same 1 kg at 85% purity would be worth approximately $83,000 — a $4,800 difference.

Verifying Karat in Raw Gold

Never accept a seller's stated purity without independent verification:

1. XRF testing for quick field estimate
2. Fire assay for settlement and documentation
3. ICP-OES for detailed elemental analysis