Jewellery Gold
Also: Jewellery alloy, Wearable gold, Jeweller's gold
Jewellery gold refers to gold alloys used to make jewellery, indicated by their fineness in carats or in parts per thousand.
Jewellery gold is not pure gold but an alloy of gold with 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 wear. Only the addition of other metals gives the material the necessary hardness, wear resistance and – depending on composition – a characteristic colour. The fineness of a piece of jewellery indicates how much pure gold it contains 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 ct | 33.3% | Entry-level jewellery, fashion jewellery |
| 375 | 9 ct | 37.5% | British market, wedding rings |
| 585 | 14 ct | 58.5% | Best-selling in Germany |
| 750 | 18 ct | 75.0% | High-quality jewellery, international |
| 916 | 22 ct | 91.6% | Indian/Arabic market |
| 999 | 24 ct | 99.9% | Cast jewellery, rare due to softness |
In the United Kingdom, 9-carat (375) and 18-carat (750) gold dominate the jewellery market. Internationally – particularly 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%) gives the warm reddish colour
- Green gold – high silver content, little copper; rare, more historical
Melt value and purchase
Anyone selling old jewellery gold generally realises 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 of 585 gold therefore contains 5.85 g of fine gold. With the melt-value calculator this value can be worked out in seconds. The actual buying price lies, depending on the dealer, 5–30% below the calculated melt value, as processing costs and a margin are factored in.
Stamps and hallmarks
In the United Kingdom, jewellery gold above certain weight thresholds must carry a legally required hallmark applied by an official Assay Office, indicating the fineness:
- Numerical fineness figure (e.g. "585" or "375")
- Optional: manufacturer's or maker's mark
- In the UK, an official Assay Office mark is mandatory above the exemption weight (the country operates compulsory hallmarking)
Hallmarks can be checked with a hallmark loupe and, in case of doubt, verified by an acid test or X-ray fluorescence analysis.
Tax notes
Jewellery gold does not qualify as investment gold for VAT purposes. The purchase of jewellery is therefore subject to the standard 20% VAT rate in the United Kingdom. Gains from the private resale of jewellery are subject to Capital Gains Tax above the annual exempt amount; there is no German-style one-year speculation period. Certain low-value chattels may fall within specific CGT reliefs. Not tax or investment advice.
In brief
Jewellery gold is always an alloy – the lower the carat value, the smaller the gold content and the greater the influence of the additive metals on colour, hardness and melt value. Those who wish to know the real material value of their jewellery should read off the weight and fineness stamp and keep an eye on the current gold price.