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Finance • Investing

Is 18 Karat Gold a Good Investment

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The short answer to this question is no. But to answer whether 18 karat gold is a good investment or not really depends on your reasons for purchasing this precious metal.

Are you looking for a way to diversify your portfolio? Would you like to know more about the benefits of storing your gold offshore? 

As a Nomad Capitalist client, we will create a holistic strategy to take you offshore. This can also include helping you choose a respected gold storage facility and jurisdiction. We are partners with qualified professionals who understand everything involved in precious metals investment.

Keep reading for our insights into which karat gold makes the better investment choice. 

physical gold ira retirement

What Is a Karat?

Karat is another way, other than the percentage, to present the purity of gold. Gold karat refers to the amount of that metal in a specific alloy. 

A gold karat is 1/24 part, or 4.1667 percent, of the metal. The purity of an alloy of gold is expressed as the proportion of pure gold it contains along with other metals. So, a piece of jewelry that has 18 parts gold and six parts of other metals is 18 karat gold, and pure gold is 24 karat gold. 

In most countries, there is a legal requirement that metal should carry a hallmark that shows and guarantees the quality and karat of the precious metal. 

So, what’s the difference between karat and carat? Carat with a C refers to the measure of weight used for gemstones, for example, a 5-carat diamond.

Karat with a K is used specifically to measure the purity of gold and other precious metals. However, carat with the spelling C is often used in the UK and other countries to speak about any type of gold, precious stones, and jewels.

Cultural Significance of Gold

What Karat is the Best?

China and India are the two frontrunners in gold purchasing. Between the two nations, demand for gold totaled 1,170 tonnes in 2022, making up around 50% of the entire global market. Particularly in India, yellow gold jewelry holds massive significance in the culture but also is viewed by many as a sort of investment and way of creating generational wealth.

Although numerous wearable jewelry options have become popular in recent years, like white gold and rose gold, traditional yellow gold jewelry remains the most popular choice, and the most purchased is generally 14-karat gold. 

In the United States, the minimum carriage is 14k gold, and 10 karat for gold jewelry. In other European jurisdictions like the United Kingdom, France, and Ireland, the lowest is 9-karat gold.

.375 = 9 karat

.417 = 10 karat

.583 (.585) = 14 karat

.750 = 18 karat gold

.833 = 20 karat 

.999 (1000) = 24 karat (pure gold)

Gold Jewelry

When it comes to purchasing gold jewelry, 18-karat gold is considered best. Although 24-karat gold is pure gold, it is also too soft to be used for fine gold jewelry in this form. Because it has to withstand considerable wear and tear, gold is often mixed with other metals, such as copper, to make it stronger when used for jewelry or other decorative purposes.

Lower karat gold, such as 9 karat rating or 10 karat, can tarnish over time, whereas a higher quantity, such as 18 karat gold, should hold its quality for a long time as gold does not generally tarnish easily.

If you were looking at gold as an investment, however, 24 karat gold (99.99% gold) is the standard. Most investment-grade gold products you find on the market today, including gold coins and gold body and bars, are 24-carat gold; however, you can also find 22-carat gold (91.67%) coins and bars, which are still acceptable but not preferred as an investment option.

When we spoke with our gold partners recently, J. Rothbart & Co, they highlighted that any gold product approved by the London Bullion Market Association should be at least 99.9% pure, which is the standard investment grade. 

For more actionable tips on asset protection, building freedom overseas, tax reduction, and more, sign up for our Weekly Rundown newsletter or subscribe to our Nomad Capitalist YouTube channel to get our latest videos. 

The Best in Gold Investments 

Would you like to not only invest in gold but also protect your assets from the risks associated with today’s volatile market, including the potential of confiscation or increased regulations?

Investing and storing your gold overseas means accessing the best precious metal investment options in the safest jurisdictions. 

Physical precious metals, including gold coins and gold bullion bars, are the most suitable long-term gold investment option. The Best Gold Coins to Buy include: 

  • Gold South African Krugerrand
  • Gold British Britannia
  • Austrian Philharmonic Gold Coins
  • Gold Mexican Libertad
  • Gold Australian Kangaroo
  • Chinese Gold Panda
  • American Gold Eagle Gold Coin
  • Canadian Gold Maple Leaf Coin

Going offshore comes with numerous benefits for high-net-worth individuals and entrepreneurs. 

Privacy and personal freedoms are legitimate concerns, particularly when examining the history of gold. As the government and central banks grapple with the current financial crisis, they may explore all options, including confiscating assets, including gold and silver. To mitigate these risks, it is advisable to not only diversify but also to hold a portion of your gold and silver assets offshore.

Gold Coins

Do you desire increased financial freedom? 

Depending on the regulations in your jurisdiction, storing these precious metals offshore may not require you to report them. Going offshore also gives you the ultimate wealth diversification and hedge against potential risks. 

The Best Countries for Offshore Gold Storage

However, it is not exactly straightforward, and it comes with its complexities. For this reason, seeking advice from experts is vital when it comes to offshore storage of precious metals.

As a Nomad Capitalist client, we will create a holistic strategy to take you offshore. This can also include helping you choose a suitable jurisdiction and a respected gold storage facility. We are partners with qualified professionals who know everything there is to know about precious metals investment. 

Would you like to make a strategic move but are unsure where to start? Attend our yearly Nomad Capitalist Event, the world’s foremost gathering of global citizens discussing second citizenship, legal offshore tax strategies, and international investing. The Event is the best place to meet and mingle with like-minded freedom seekers and visionaries.


Should I invest in gold coins?

Investing in gold coins is a well-established choice for individuals seeking to broaden their wealth and investment portfolio while safeguarding against inflation. Gold’s correlation with conventional assets such as stocks and bonds often insulates it from negative price impacts.

For more on why gold coins make a good investment, check out our Ultimate Guide to Gold Coins

What is white gold?

In the 19th century, there was significant growth in the jewelry industry, including the invention of white gold. Initially, gold was combined with palladium, and later copper, zinc, and nickel to produce white gold. 

Nowadays, nickel, which could cause skin allergies and other sensitivities, is often replaced by metals from the platinum family. Depending on the specific design, white gold alloys can exhibit characteristics such as ductility, malleability, and hardness. 

What is rose gold?

Rose gold was first introduced by the famous Russian-based jeweler Carl Faberge for his famous Faberge Eggs. This unique type of rose gold later became popular in the United States in 1920 and was used for high-end pieces, engagement rings, and wedding bands. 

Rose gold contains a higher amount of copper, which gives it a unique hue. Like yellow gold and white gold, rose gold can be purchased in various purities, including 9 or 18K gold. 

Should I buy 18k or 22k gold?

There are a few things to consider when comparing 18k gold to 22k gold. Firstly, 18k gold is more durable due to its higher alloy content, including copper and silver, which strengthen the metal and reduce the likelihood of damage or scratches. In terms of classic gold appearance and color, 18k gold possesses a bolder yellow gold hue, while 22k gold boasts a richer golden shade.

Cost-wise, 18k gold is generally less expensive due to its lower gold content compared to 22k gold. However, 22k gold has a higher resale value and is more resistant to tarnishing due to its greater pure gold content.

Ultimately, the choice between 18k and 22k gold depends on personal preferences and reasons for purchasing. 


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