916 Gold (22 Karat)

916 gold - also known as 22 carat gold - contains 916.6 thousandths of pure gold, that is exactly 22 of a possible 24 parts. The remaining 8.33 % is made up of alloying metals, typically silver, copper or a combination of both. This places 916 gold on the fineness scale between the popular 750 gold (18 carat) and near-pure fine gold (999). The current gold price is always the basis for calculating the metal value of this fineness.

Fineness and carat calculation

The carat system divides gold content into 24 equal parts. 22 carat means:

Fineness = 22 / 24 x 1000 = 916.6

The hallmark therefore shows the stamp number 916 or 916.6. To work out the exact metal value of a 916 gold item, use the melt value calculator - it automatically accounts for weight, fineness and the current spot price.

Alloy and properties

The 8.33 % of additional metals give 916 gold markedly better mechanical properties than pure gold (999.9):

Thanks to its high gold content, 916 gold keeps the characteristic rich yellow-gold colour - it is distinctly more golden than 585 gold (14 carat) and shows barely any variation in tone or lustre.

Typical areas of use

916 gold is used above all in three areas:

1. Bullion coins - the South African Krugerrand, the British Sovereign and the American Gold Eagle are struck in 916 gold. These coins are regarded as investment classics worldwide.
2. Jewellery - especially in India, the Middle East and parts of Southeast Asia, 22 carat gold is the preferred standard for wedding jewellery and for gold as a store of value.
3. Historic circulating coins - many of the great gold coins of the 19th and early 20th centuries, including the British Sovereign and US gold coins (Double Eagle, Eagle), were struck in 22 carat. Coins of the German Empire, by contrast, were issued in 900 gold (21.6 carat).

916 gold as an investment

Coins such as the Krugerrand in 916 gold are among the most-traded investment gold coins in the world. Because the coin weight is standardised to the fine-gold content (for example 1 troy ounce of pure gold), a 1-ounce Krugerrand actually weighs a little more than a troy ounce - namely about 33.93 g gross weight, of which 91.66 % is gold, yielding exactly 1 troy ounce (31.1035 g) of gold.

On tax treatment: in Ireland, transactions in investment gold (including qualifying gold coins of 916 fineness) are exempt from VAT under the VAT Consolidation Act 2010. For a private seller, any gain is chargeable to Capital Gains Tax at 33 %, after the annual personal exemption of EUR 1,270; there is no holding-period relief, so - unlike Germany's one-year rule under Paragraph 23 EStG - the gain stays chargeable however long the coin was held. Note: this is not tax advice - for specific questions please contact the Revenue Commissioners (revenue.ie) or a qualified adviser.

Distinction from other finenesses

You can compare the current value of any quantity of gold at different finenesses directly with the gold calculator or the buying price calculator.

In brief

916 gold (22 carat) combines a very high gold content of 91.66 % with solid everyday durability - it is the preferred material of the world's most important bullion coins and, through its fineness, stays clearly distinguishable from cheaper alloys.