Jewellery Gold
Also: Jewellery Alloy, Commercial Gold, Jeweller's Gold
Jewellery gold refers to gold alloys used in the manufacture of jewellery, expressed by fineness in karats or per mille depending on the gold content.
Jewellery gold is not pure gold but an alloy of gold and one or more additional metals such as silver, copper, palladium or zinc. Pure gold (999 or 24 karat) is too soft for jewellery and would deform quickly in everyday use. Only by mixing in other metals does the material acquire the necessary hardness, abrasion resistance and — depending on the composition — a characteristic colour. The fineness of a piece of jewellery indicates how much pure gold is contained per 1,000 parts by weight, and is additionally expressed in karats (abbreviated kt or ct): 24 karats corresponds to 999 thousandths of fine gold.
Common Fineness Grades at a Glance
| Fineness | Karat | Gold Content | Typical Use |
|---|---|---|---|
| 333 | 8 kt | 33.3 % | Entry-level jewellery, fashion jewellery |
| 375 | 9 kt | 37.5 % | British market, wedding rings |
| 585 | 14 kt | 58.5 % | Best-selling grade in Germany |
| 750 | 18 kt | 75.0 % | High-quality jewellery, international |
| 916 | 22 kt | 91.6 % | Indian/Arabian market |
| 999 | 24 kt | 99.9 % | Cast jewellery, rare due to softness |
In Germany, 585 gold (14 karat) dominates the mass market. Internationally — especially in Switzerland, France and Italy — 750 gold (18 karat) is the preferred standard for quality jewellery.
Colours of Jewellery Gold
The alloying partners determine not only the hardness but also the colour:
- Yellow gold – classic mixture with silver and copper in a balanced ratio
- White gold – palladium or, formerly, nickel as a bleaching agent; often rhodium-plated
- Red gold / Rose gold – an increased copper content (from approx. 20 %) produces the warm reddish colour
- Green gold – high silver content, little copper; rare, more historical in nature
Melt Value and Purchasing
Anyone selling old jewellery gold will generally receive the material value minus a dealer margin. The melt value is calculated from the weight, the fineness and the current gold price:
Melt Value = Gross Weight (g) × Fineness (‰ / 1000) × Gold Price (€/g)
A 10-gram ring made of 585 gold therefore contains 5.85 g of fine gold. The melt value calculator allows this value to be calculated in seconds. The actual buying price is typically 5–30 % below the calculated melt value, as processing costs and margin are factored in.
Hallmarks and Stamps
In Germany and the EU, jewellery gold bears a hallmark required by law or at least customary in the trade, which identifies the fineness:
- Numerical indication of fineness (e.g. "585")
- Optional: maker's or master's mark
- Optional: assay office stamp (in countries with mandatory state inspection such as the United Kingdom or Austria)
Hallmarks can be examined with a hallmark loupe and, if in doubt, verified by acid test or X-ray fluorescence analysis.
Tax Notes
Jewellery gold is not considered investment gold for the purposes of VAT exemption. The purchase of jewellery is therefore subject to standard VAT (19 % in Germany). Gains from the private resale of jewellery are taxable if less than one year has elapsed between purchase and sale (speculative holding period). After the one-year period has expired, gains are tax-free. This does not constitute tax or investment advice.
In Brief
Jewellery gold is always an alloy — the lower the karat value, the lower the gold content and the greater the influence of the base metals on colour, hardness and melt value. Anyone wishing to know the true material value of their jewellery should read the weight and fineness hallmark, and keep an eye on the current gold price.