Guide: Understanding the Difference between Gold, Silver, and Diamonds

When it comes to precious materials in jewelry, gold, silver, and diamonds are among the most popular choices. Each has unique characteristics that make them valuable and desirable in different ways. Let’s explore the key differences between these three jewelry staples.

Gold: A Timeless Classic

Purity

Gold purity is measured in karats, with 24K being 100% pure gold. However, pure gold is too soft for everyday wear, so it’s often alloyed with other metals

Karat GoldParts Gold% of Gold
24kt24 in 2499.9% or higher
22kt22 in 2491.6%
18kt18 in 2475%
14kt14 in 2458.3%
12kt12 in 2450%
10kt10 in 2441.6%
9kt9 in 2437.5%

Color variations

Gold comes in yellow, white, and rose varieties, offering versatility in design.

Durability

Gold has a higher tensile strength than silver, making it more resistant to scratches and bending. Gold is a durable metal due to its resistance to corrosion, tarnishing, and discoloration. However, its durability depends on its purity. Lower karat gold, like 10K, is more resistant to scratches and dents due to more alloy metals, while higher karat gold, like 18K, is softer and more malleable.

Cost

Gold is generally more expensive than silver due to its scarcity. Inflation, interest rates, market sentiment, and the supply-demand balance all have an impact on gold prices. Supply and demand are critical factors, with mine production accounting for the vast majority of overall gold supply. In addition, inflation, the strength of the US currency, economic data, and the Federal Reserve’s monetary policies all have an impact on gold prices.

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