Gold has long been known as a symbol of value, wealth, and financial security. However, not all gold shares the same characteristics. In the Indonesian market, the term emas muda (low-carat gold) is commonly used to refer to gold jewelry with a lower level of purity compared to high-carat or pure gold.
For some people, low-carat gold is a practical choice because of its more affordable price. Still, before buying or storing it, it is important to understand what low-carat gold is, how many karats it contains, and how its value compares to other types of gold.
What Is Low-Carat Gold?
Simply put, low-carat gold is gold with less than 70% pure gold content. In practice, it is usually found in the form of jewelry rather than gold bars.
This type of gold is mixed with other metals such as silver, copper, or nickel to increase its strength and durability. That is why low-carat gold is not easily bent and is suitable for everyday jewelry use.
Common karat ranges of low-carat gold on the market:
- 8 karat
- 9 karat
- 10 karat
- 12 karat
- 14 karat
By comparison, pure gold has a purity of 24 karats, with gold content close to 99%.
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Key Characteristics of Low-Carat Gold
Low-carat gold has distinct features that differentiate it from high-carat gold or gold bullion. Some of its main characteristics include:
- More affordable than high-purity gold.
- Stronger and more durable due to mixed metals.
- A paler gold color, depending on the alloy composition.
- Widely used for jewelry with diverse designs.
These characteristics make low-carat gold popular for rings, bracelets, necklaces, and other accessories worn in daily activities.
Pros and Cons of Low-Carat Gold
Before buying low-carat gold, it is important to understand its advantages and disadvantages.
Advantages of low-carat gold:
- Relatively lower price.
- More flexible jewelry designs.
- Less prone to damage or deformation.
- Suitable for fashion and gift purposes.
Disadvantages of low-carat gold:
- Lower resale value.
- Less suitable for long-term investment.
- Color may fade if not properly maintained.
- Resale price is usually calculated based only on pure gold content.
For these reasons, low-carat gold is better viewed as valuable jewelry rather than a primary hedge or investment instrument.
Is Low-Carat Gold Suitable for Investment?
If the main goal is investment, low-carat gold is generally less optimal. When resold, its price is usually calculated based only on the weight of the pure gold it contains, without considering design or craftsmanship costs.
For investors, higher-purity gold such as gold bars is more commonly chosen because it offers:
- More stable resale value
- Easier liquidity
- No impact from jewelry manufacturing costs
However, with technological advancements, there are now other ways to gain exposure to gold without purchasing physical gold.
Digital Gold as a Modern Alternative
In addition to physical gold, such as low-carat jewelry or gold bars, digital gold is now available, representing gold ownership in digital form. One example is gold-backed tokens like XAUt, where each token represents physical gold stored professionally and tracks global gold prices.
Digital gold provides a solution for investors who want exposure to gold without directly storing physical gold. Supported by blockchain technology, gold ownership can be recorded transparently and traded digitally.
Some advantages of digital gold include:
- No need to store physical gold.
- Accessible and monitorable online.
- More flexible purchase denominations.
- Supports modern portfolio diversification.
In Indonesia, digital gold can also be accessed through investment applications such as Mobee. Through Mobee, users can invest in digital gold conveniently without worrying about physical storage or gold security.
For some people, digital gold on Mobee serves as an alternative or complement to physical gold ownership. While low-carat gold mainly serves jewelry and lifestyle purposes, digital gold is more relevant for investment and medium- to long-term asset management.
That said, like other investment instruments, digital gold still carries risks, including fluctuations in global gold prices and dependence on digital systems. Therefore, investors need to understand the product and align it with their individual risk profiles.
Read also: Gold-Based Crypto Investment: Understanding How It Works
Choosing Gold Based on Your Needs
Each type of gold serves a different purpose. To simplify, here is a quick overview:
- Low-carat gold: suitable for jewelry and lifestyle.
- High-carat gold/gold bars: suitable for long-term investment.
- Digital gold: suitable for flexibility and modern diversification.
Understanding these differences helps you make the right choice based on your financial goals and personal needs.
Conclusion
Low-carat gold is gold with lower purity that is widely used for jewelry due to its affordability and design versatility. Although it is less ideal as an investment instrument, low-carat gold still holds strong aesthetic and social value.
On the other hand, the emergence of digital gold offers a new alternative for those who want practical exposure to gold. By understanding the characteristics of each type of gold, you can make wiser decisions—whether for lifestyle purposes or long-term financial planning.
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