Jewellery Gold
Also: Jewellery alloy, Consumer gold, Jeweller's gold
Jewellery gold refers to gold alloys used to manufacture jewellery, whose fineness is stated in carats or thousandths depending on the gold content.
Jewellery gold is not pure gold but an alloy of gold and one or more additive metals such as silver, copper, palladium or zinc. Pure gold (999 or 24 carat) is too soft for jewellery and would quickly deform in everyday use. Only the admixture of other metals gives the material 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 carats (abbreviated kt or ct): 24 carats correspond to 999 thousandths of fine gold.
Common finenesses at a glance
| Fineness | Carat | 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 in continental Europe |
| 750 | 18 kt | 75.0 % | High-quality jewellery, international |
| 916 | 22 kt | 91.6 % | Indian/Arabic market |
| 999 | 24 kt | 99.9 % | Cast jewellery, rare due to softness |
Across continental Europe, 585 gold (14 carat) dominates the mass market. Internationally – especially in Switzerland, France and Italy – 750 gold (18 carat) 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 about 20 %) produces the warm red colour
- Green gold – high silver content, little copper; rare, rather historical
Melt value and buy-back
Anyone selling old jewellery gold generally receives the material value less a dealer margin. The melt value is calculated from weight, 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 lets you calculate this value in seconds. The actual buying price is, depending on the dealer, 5–30 % below the calculated melt value, because processing costs and margin are factored in.
Hallmarks and punch marks
In Malta and across the EU, jewellery gold carries a legally required or at least customary hallmark identifying the fineness:
- Numerical statement of the fineness (e.g. "585")
- Optional: maker's or master's mark
- Optional: assay office stamp (in countries with mandatory state control such as the United Kingdom or Austria)
Hallmarks can be checked with a hallmark loupe and, in case of doubt, verified using an acid test or X-ray fluorescence analysis.
Tax notes
Jewellery gold does not qualify as investment gold for the purposes of the VAT exemption. In Malta, the purchase of jewellery is therefore subject to the standard rate of VAT (18 %; Directive 2006/112/EC as implemented by the Maltese VAT Act, Chapter 406 of the Laws of Malta). On the private resale of jewellery, Malta levies no capital gains tax: Maltese CGT applies only to specific assets (immovable property, securities, business interests), and movable personal effects such as jewellery are not caught. There is no German-style speculation period. This is not tax or investment advice.
In brief
Jewellery gold is always an alloy – the lower the carat value, the lower the gold content and the stronger the influence of the added metals on colour, hardness and melt value. Anyone wishing to know the real material value of their jewellery should read off the weight and the fineness hallmark and keep an eye on the current gold price.