What Is 24-Karat Gold?
The 24K or 24 karat gold is the purest form of gold that is available in the market. It is 99.9% pure gold, and it does not contain any other metals in it. This form of gold has the brightest yellow color and it is rather softer than other forms of gold. The 22k and 21k gold are more common in jewelry making as 24k gold is inadequate because of its soft and bendable nature.
The price of 24K gold is the highest among all other purities because it is the purest form of gold. It mostly comes in the form of bars, coins, and bricks. Investment is a common reason for buying 24k gold. The making of some electronic and medical devices also uses gold.
Pros Of 24-Karat Gold:
- It is the most valuable type of gold because it is pure and does not contain any other metals.
- It is hypoallergenic, making it suitable for people with sensitive skin.
- It does not tarnish or corrode, so it can be worn for long periods of time without losing its shine.
Cons Of 24-Karat Gold:
- It is very soft and prone to scratching, so it is not suitable for everyday wear in jewelry.
- It is not as durable as 22k gold or 21k gold alloys, which are mixed with other metals to increase their strength and resistance to wear.
- It is more expensive than gold alloys because it is pure and therefore more valuable.
Overall, 24-karat gold is best suited for special occasions and as a decorative element, rather than for everyday wear.
Factors That Affect The 24K Gold Rate In Pakistan
The 24k gold rate in Pakistan is influenced by a variety of factors. Some of the key factors include the US dollar, the economy, and supply/demand.
The US dollar is one of the main factors that affect the price of gold. Gold is typically priced in USD, so the value of gold can be influenced by the strength or weakness of the US dollar. When the value of the dollar increases, it can make gold appear more expensive to buyers using other currencies, which can decrease demand for gold and lead to a decline in its price.
Supply & Demand
Supply and demand affect gold prices the same as they affect the pricing of other things. When the supply is high and demand is low, the prices of gold are decreased. Similarly, the gold price can increase when the demand is high and supply is low.
People perceive gold as safe haven because its value doesn’t depreciate over time. This is the reason why, In times of economic instability, people tend to buy more gold. Buying more gold results in increased demand, hence the prices increased.