Gold Coin - Fineness of Gold Coins

Fineness of Gold Coins

Further information: Crown gold, Karat (purity), and Millesimal fineness

Coins are usually made of an alloy as other metals are mixed into the coin to make it more durable. Fineness is the actual gold content in a coin or bar and expressed as a "per mil," or thousandths. For example, a gold ingot identified as being .999 fine will be 999/1000 pure gold, with the other 1/1000 being an alloy.

Karat weight (K or kt) is a traditional fraction-based system used to denote the fineness of gold, with one karat being equal to 1/24 part of pure gold in an alloy. With the precision of modern assaying techniques, however, the fineness of gold ingots and bullion is more likely to appear as a decimal measurement. In this system, pure gold would be denoted as 1.000 fine. However, since absolutely pure gold is very soft and therefore not suitable for coinage or ingots, it is generally accepted worldwide that anything above .999 fine qualifies as 24K. Below is a karat weight to fineness conversion chart.

Correlation between karats and fineness

  • 24 karats = .999 fine or above
  • 23 karats = .958 fine
  • 22 karats = .917 fine (the UK gold coin standard)
  • 21 karats = .875 fine
  • 20 karats = .833 fine
  • 18 karats = .750 fine
  • 16 karats = .667 fine
  • 14 karats = .583 fine
  • 10 karats = .417 fine

The fineness is often converted to a percent, as well. If a gold coin has a fineness of .900, that is 90.0% pure gold. If a gold coin has a fineness of .850, then the gold coin is 85.0% pure.

Coins have varied greatly in fineness through history. Notable historical standards that were closely adhered-to include the crown gold (22 karat) used in all English gold coins intended for circulation from 1526 onward, and 0.900 fine (21.6 kt), the standard for all American circulation-coins from 1837 onward.

Fineness is not the only way to value a gold coin; a great deal of value in collector coins comes from condition and rarity. To a far lesser extent, even the value of gold bullion coins is influenced by their physical condition.

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