20 Karat gold has 83.3% purity, making it a blend of gold and other metals for added strength. Discover its features, value, common uses in jewellery, and how it differs from 22K and 24K gold.
20 Karat gold is a type of gold alloy containing 83.3% pure gold mixed with other metals like silver, zinc, or copper. The added metals improve the metal’s strength and durability while reducing its softness. It is often used in jewellery that requires a balance between purity and wearability.
People often ask, What is 20 karat gold? The term refers to a gold alloy, where 20 out of 24 parts are pure gold. It is less pure than 22K or 24K gold but offers better resilience for daily use. It is important to verify the 20k gold hallmark to ensure its authenticity before buying or using it as collateral.
The 20k gold purity is 83.3%, meaning that in every 100 grams of this alloy, 83.3 grams are pure gold and the rest are other metals.
This level of purity is often marked with a 20k gold hallmark, indicating that the item meets official standards. These hallmarks are issued by authorised hallmarking centres in India, ensuring the gold content matches the claimed percentage.
The remaining 16.7% consists of strengthening metals, which vary depending on the manufacturer. The 20k gold percentage provides a balance between shine, strength, and cost, making it suitable for jewellery, ornaments, and in some cases, for pledging as loan collateral.
Compared to higher karat values, 20K gold is harder and less prone to scratches, making it ideal for items that need durability.
20K gold holds cultural, practical, and financial significance. Its high gold content makes it valuable, while the added metals give it strength for regular use.
It is commonly used in jewellery for those seeking a mix of purity and durability. While not as soft as 22K or 24K, it still retains the rich yellow hue that appeals to many buyers.
In markets where high gold content is preferred but wearability is essential, 20K gold serves as a middle ground. Its composition supports intricate designs without excessive bending or damage.
Jewellers may recommend 20K for custom-made ornaments, especially where detailed work requires structural integrity. Its balance between purity and practicality gives it both aesthetic and functional appeal.
The value of 20K gold depends primarily on the current market price of gold, which fluctuates daily. Since 20K gold contains 83.3% pure gold, its price is proportionately lower than 24K or 22K.
To calculate its approximate value, multiply the market rate of 24K gold by 83.3%. For example, if 24K gold is priced at ₹6,000 per gram, 20K gold would be worth around ₹5,000 per gram.
However, jewellers may also factor in making charges and taxes, which can vary widely. For investment or resale purposes, buyers should consider both the gold content and hallmark certification.
Lenders offering gold loans also consider the purity of the gold while determining the loan amount. Therefore, having a 20k gold hallmark ensures better valuation and trustworthiness in such transactions.
20K gold has a rich yellow colour, slightly deeper than 18K but not as intense as 22K or 24K gold. The hue results from its high gold content combined with other metals like copper or silver.
The exact shade may vary depending on the alloying metals used. For example, a higher copper content gives it a reddish tint, while more silver creates a lighter yellow finish.
In terms of appearance, 20K gold retains a lustrous shine that appeals to those seeking both elegance and longevity. Its moderate hardness also allows jewellers to create detailed patterns without compromising the piece’s structure.
Due to its balanced mix of gold and alloys, it is suitable for both traditional and contemporary jewellery designs.
Getting a gold loan using 20K gold is a straightforward process. Lenders usually accept gold jewellery of 18K and above, making 20K gold eligible for pledging.
Here's how to proceed:
Visit a bank or NBFC offering gold loans with your 20K gold jewellery
Ensure the items carry a valid 20k gold hallmark for quicker valuation and approval
The lender will check the 20k gold purity using standard testing methods
Based on the purity and weight, the loan amount will be calculated
Once documentation is verified, funds are typically disbursed on the same day
Some lenders may offer higher loan-to-value (LTV) ratios for hallmarked gold. Always confirm the gold loan terms, including interest rates, tenure, and processing fees, before proceeding.
With 83.3% purity, 20K gold is valued better than 18K, allowing for a higher loan amount per gram
Lenders usually approve gold loans within hours, provided the gold is genuine and hallmarked
Loan approval is based on gold purity, not the borrower's financial background
Borrowers can choose from monthly EMI, bullet, or overdraft repayment options
Borrowers keep ownership of their gold while availing of cash for urgent needs
Ensure your gold carries a 20k gold hallmark for a smoother experience with lenders.
To get the best loan value from 20K gold, follow these practical tips:
A valid BIS-certified 20k gold hallmark increases the credibility and ensures better loan valuation.
Avoid damaged or broken pieces. Whole ornaments are easier to assess and fetch better value.
Lenders offer different loan-to-value (LTV) ratios. Choose one offering up to 75% or more for higher returns.
Some lenders allow rate negotiation based on the quantity and purity of the gold.
Review any hidden charges before finalising the lender.
These steps help maximise the value you receive when pledging 20k gold purity for a loan.
When choosing between 20K and 18K gold, it’s important to consider purity, durability, appearance, and suitability for various uses.
Here are some key features you should consider:
| Feature |
20K Gold |
18K Gold |
|---|---|---|
| Gold Content |
83.3% |
75% |
| Durability |
Moderate |
High |
| Colour |
Rich yellow |
Slightly duller yellow |
| Common Use |
High-end jewellery, gold loans |
Daily-wear jewellery |
| Loan Value |
Higher than 18K due to purity |
Lower loan value comparatively |
| Hallmark Availability |
Yes, 20k gold hallmark supported |
Yes, Hallmark available |
While 18K is more durable, 20K offers better resale value and higher loan eligibility due to its higher 20k gold percentage.
It means the gold alloy contains 20 parts pure gold out of 24, equating to 83.3% purity.
Yes, it is real gold. It consists of 83.3% pure gold mixed with other metals like copper or silver for strength.
Check the hallmark. 20K gold will be marked with "20K" or "833", while 18K will show "18K" or "750". Testing kits or jeweller verification also help.
The amount depends on weight, purity, and the lender's LTV ratio. For example, 10 grams of 20K gold can fetch up to 75–80% of its value.
Key factors include gold purity, market price, weight, lender’s LTV ratio, and whether the jewellery is hallmarked.
Usually within a few hours. Most lenders disburse funds the same day after verifying gold purity and documents.
Yes. Processing fees vary by lender but typically range between 0.5% to 2% of the sanctioned loan amount.