- Fineness is a measure of the amount of pure gold in a gold alloy, expressed in parts per thousand.
- It is stamped on jewelry (eg. 750 or the karat value of 18k), gold coins and bars (mostly 999.9).
Gold fineness is an important characteristic of gold that determines its purity and value. The higher the fineness, the purer the gold.
KEY TAKEAWAYS
- A gold alloy with a fineness of 750 contains 750 parts of pure gold and 250 parts of other metals. that is 75% of pure gold (costing 75% of the price of pure gold). 750 gold is 18 karat.
- The concept of gold fineness has a long history dating back to ancient civilizations.
- Gold fineness is still used to measure the purity of gold in various applications, from jewelry making to investment gold.
- Jewelry in the West is between 333 and 750 (33.3% and 75% of pure gold. That is between 8 karat and 18 karat)
- Gold bars have usually a fineness of 999.9 (99.99% of pure gold)
Contents
Introduction
The concept of gold fineness has a long history dating back to ancient civilizations:
- The first standardized gold coinage was introduced by King Croesus of Lydia in the sixth century BC, who used a gold-silver alloy (called Electrum) with a fineness of 600.
- Over the centuries, different regions and cultures developed their own gold standards and fineness levels.
- Today, gold fineness is still used to measure the purity of gold in various applications, from jewelry making to investment gold.
Table of gold fineness, purity and karat values for investment (bars and coins):
| Fineness | Karat | Parts | Purity | Comments |
|---|---|---|---|---|
| 999.999 | 24 | 24/24 | 99.9999% | Purest gold ever produced, by the Perth Mint |
| 999.99 | 24 | 24/24 | 99.999% | Sometimes gold coins produced with this high purity |
| 999.9 | 24 | 24/24 | 99.99% | Standard for gold bars, most popular for gold coins |
| 999 | 24 | 24/24 | 99.9% | Chinese Gold Panda coins |
| 995 | 24 | 24/24 | 99.5% | Good delivery gold bars (LBMA, 12.4kg/ 400 oz) |
| 916 | 23 | 23/24 | 91.6% | Some gold coins, e.g. the South African Krugerrand |
Table of gold fineness, purity and karat values for jewelry:
| Fineness | Karat | Parts | Purity | Comments |
|---|---|---|---|---|
| 999 | 24 | 24/24 | 99.9% | Popular for jewelry in India, China and the Middle East |
| 958 | 23 | 23/24 | 95.8% | Uncommon fineness |
| 916 | 22 | 22/24 | 91.6% | Uncommon for jewelry, popular for gold coins |
| 875 | 21 | 21/24 | 87.5% | Uncommon fineness |
| 833 | 20 | 20/24 | 83.3% | Popular in the Middle East and some Asian countries |
| 667 | 18 | 18/24 | 66.7% | Popular fineness |
| 585 | 14 | 14/24 | 58.5% | The most popular fineness in the United States |
| 500 | 12 | 12/24 | 50.0% | Nowadays uncommon fineness, gained popularity in the UK at the turn of the 19th century |
| 417 | 10 | 10/24 | 41.7% | Sometimes written as 416, until 2016 legal minimum fineness in the United States |
| 375 | 9 | 9/24 | 37.5% | Legal minimum in the UK, Ireland, France, Austria and Portugal |
| 333 | 8 | 8/24 | 33.3% | Legal minimum in Germany, Denmark and Greece |
| 78 | 1 | 1/24 | 7.8% | Legal minimum in the United States since 2016 |
History of Gold Fineness
In ancient times, gold was often alloyed with other metals to make it harder and more durable for use in jewelry and other decorative items. The purity of gold was measured in carats, with 24 carats representing pure gold. This system is still used today, especially in the jewelry industry.
In the Middle Ages, the goldsmiths of Europe began using a system called “hallmarks” to indicate the purity of gold. A small mark was stamped onto each piece of gold, indicating its fineness. This system was eventually replaced by a more precise system of assaying, which involved melting the gold and measuring its purity using various techniques.
In the 19th and early 20th centuries, the Latin Monetary Union standardized the gold fineness of many of the coins used in Europe. The most widely used fineness was 900, which was used for many of the gold coins minted during this time period.
From the 1960s, gold coins were produced for storing value and investment purposes (so-called bullion). The oldest and most popular one is the South African Krugerrand. It established a fineness of 916.7, which many other coins adapted. The most popular investment grade fineness, for coins and bars, is 999.9.
Measuring Gold Fineness
When it comes to measuring the purity of gold, there are two main systems used:
- the Karat System
- Millesimal Fineness System
Both systems are widely recognized and used in the gold industry.
Karat System
The Karat System is the most common method used for measuring the purity of gold. It measures the gold content in the alloy on a scale of 0 to 24, with 24 karat gold being the purest form of gold. This means that 24 karat gold is 99.9% pure gold, with the remaining 0.1% being made up of other metals.
The Karat System is commonly used in the United States, Canada, and some parts of Asia. In the Karat System, 18 karat gold is 75% pure gold, 14 karat gold is 58.3% pure gold, and 10 karat gold is 41.7% pure gold.
Millesimal Fineness System
The Millesimal Fineness System is widely used in Europe and is the preferred method of measuring gold purity by many international organizations. This system measures the purity of gold in parts per thousand, with pure gold being 999.9 parts per thousand.
For example, 18 karat gold can be expressed as 750 parts per thousand, which means that it is 75% pure gold. In the Millesimal Fineness System, 24 karat gold is expressed as 999.9 parts per thousand, which means that it is 99.99% pure gold.
The Millesimal Fineness System is more precise than the Karat System and is often used for investment-grade gold bars and coins. It is also used in the jewelry industry to measure the purity of gold.
Popular Fineness in Gold Bars, Coins an Jewelry
Gold has been produced with fineness from 83 to 999.999.
Some fineness levels are popular for jewelry, others for current coins and bars and others were only seldom produced.
Fineness of Gold Bars
- Doré Bars: Gold poured into the shape of gold bars by mining companies are called Doré Bars. They weight up to 25 kg, and have a fineness of between 500 and 750. These bars are sold to acredited refining companies for assaying and turning it into standardized gold bars to be sold on the international market. (read more about it in the article about gold mining).
- LBMA Gold Bars: also called good delivery gold bars are from one of the currently 66 refiners that are accredited by the LBMA (see list). The oldest refiners on that list are Aurubis (Germany), Metalor Technologies (Switzerland), Rand Refinery (South Africa), Royal Canadian Mint (Canada) and Umicore (Belgium). God delivery gold bars weight around 400 ounces (12.4 kg) and have a minimum fineness of 995. These gold bars are sold on international gold markets are used for storage by central banks and other institutions.
- Gold bars for investors: A fineness of 999.9 (called four nines fine), also written as .9999 or 999,9 is the established standard for gold bars. The range in weight from 1 gram to 1.000 gram (1 kg). Lower weights are minted, higher weight are cast.
Fineness of Gold Coins
The most common fineness for investment gold coins are 917 (22 karat) and 9999.
- The South African Krugerrand, first minted in 1967, contains one troy ounce of gold with a fineness of 917 (sometimes written as 916 or with decimals, 916.7). Coins minted with the same fineness are the American Gold Eagle and the British Sovereign.
- Most bullion coins are cast with a fineness of 999.9: Canadian Gold Maple Leaf, American Buffalo, Britannia Gold Coin, Vienna Philharmonic Coin and others.
- The Chinese Gold Panda has a fineness of 999. In the first three years, also the Canadian Gold Maple Leaf was produced with a fineness of 999.
- Some mints produce gold coins of a higher fineness than 9999 for special occasions. Due to their rarity, they valued above their gold price. Therefore they cannot be considered as investment gold coins. For example, the Royal Canadian Mint produces regularly since 2005 gold maple leaf with a fineness of 999.99 and a weight of 1 ounce.
Fineness of Notable Historical Coins
Many of the most famous gold coins in history were minted with a specific gold fineness.
- The British Sovereign, for example, was first minted in 1489 and contained 23 carats and 3.5 grains of gold, giving it a fineness of 958.3.
- The Ducat, a gold coin that was widely used in Europe from the Middle Ages until the early 20th century, had a fineness of 986. This high fineness made it one of the purest gold coins in circulation.
- The Napoleon Coin, a 20-franc gold coin minted in France and Switzerland, was also widely used and had a fineness of 900.
- The American Eagle of 1834 – 1836 was minted with a fineness of 899.
Fineness in Jewelry
The purity in gold jewelry is based on the 24-part karat system and then converted to fineness values. This is the reason why fineness have odd values (e.g. 375, 916; which are 9 and 22 karat, respectively). Fineness in gold jewelry pieces range from 78, which is 1 karat, the legal minimum of gold jewelry in the United States, to near pure gold of 999 and above (24 karat), popular in India and China as a gift.
Popular jewelry fineness is 375 (9 karat), 585 (14 karat), and 750 (18 karat).
- fineness of 78, better known as 1 karat: since 2018, gold can be sold with a fineness as low as 1 karat. Before that, the minimum was 10 karat or a fineness of 417. In other countries, gold must have a fineness of at least 333 or 375
- fineness of 333 (8 karat): this is the legal minimum in Germany, Denmark and Greece
- fineness of 375 (9 karat): legal minimum in the UK, Ireland, France, Austria and Portugal
- fineness of 417 (10 karat): sometimes written as 416 (416.77 to be exact, as it is based on the caratage of 10, which is 10 parts of 24, which is 41.66% percent)
- fineness of 500 (12 karat): nowadays uncommon fineness, gained popularity in the UK at the turn of the 19th century
- fineness of 585 (14 karat): the most popular fineness in the United States. It should be 583 (14 parts of 24 is 58.33%). European manufacturers make the gold of slightly higher purity, that is 585. Manufacturers of other parts of the world have follow suit
- fineness of 667 (18 karat): also a popular pureness
- fineness of 833 (20 karat): popular in the Middle East and some Asian countries
- fineness of 875 (21 karat): uncommon fineness
- fineness of 916 (22 karat): uncommon for jewelry, popular for gold coins (both historically and contemporary; see above the section about coins)
- fineness of 958 (23 karat): uncommon fineness
- fineness of 999 (24 karat): popular in India, China and the Middle East; especially as gifts (see culture) and for investments.
FAQs
How is gold fineness related to gold purity?
Gold fineness is a measure of the purity of gold, expressed as a proportion of the metal that is actually gold. It is measured in parts per thousand. The higher the number of parts per thousand, the purer the gold. For example, 18-karat gold is considered to be 667 parts per thousand, or 100% pure gold.
What does a 9999 fineness rating indicate about gold quality?
A 999.9 fineness rating indicates that the gold is 99.99% pure. This is the highest level of purity available for gold. Gold with a 999 fineness rating is often used for investment purposes, as it is considered to be of the highest quality.
What is the significance of the numbers 916, 999 and 999.9 in gold fineness?
The number 916 is often used to indicate that the gold is 91.6% pure (to be exact, it is 91.66% pure, which is 917), while the number 999 is used to indicate that the gold is 99.9% pure, (and 999.9 stands for 99.99% pure). Gold with a fineness rating of 916 is used for some bullion coins, the most popular is the South African Krugerrand, while gold with a fineness rating of 999 is used for some gold coins for example the Chines Gold Panda. The most popular purity for investment purposes is 999.9. Nearly all gold bars and most gold coins have this fineness.
In what way does gold fineness differ from pure gold?
Gold fineness is a measure of the purity of gold, whereas pure gold is gold that has not been mixed with any other metals. Pure gold is extremely soft and malleable, making it unsuitable for many types of jewelry and other applications. By adding other metals to the gold, the resulting alloy can be made stronger and more durable.
Is there a visible difference between 99.5% and 99.9% fine gold?
There is no visible difference between gold that is 99.5% pure and gold that is 99.9% pure. However, the higher the level of purity, the more valuable the gold is considered to be. Gold that is 99.9% pure is often used for investment purposes, while gold that is 99.5% pure is commonly used in jewelry.