Understanding gold fineness: 995, 999 and 999.9 explained
Fineness is the single most important specification in any gold transaction. Here is what the numbers mean and why they matter.
Every gold bar, coin and granule is described by its fineness — the proportion of pure gold it contains. Getting this specification right is the foundation of any business transaction.
Parts per thousand
Fineness is expressed in parts per thousand. A bar stamped 999.9 contains at least 999.9 parts gold per 1,000 parts of total weight — 99.99% pure. This is often called "four nines".
Other common standards include:
- 999.0 — 99.9% pure, sometimes called "three nines"
- 995.0 — 99.5% pure, a widely used wholesale standard
- 916 — 91.6% pure, equivalent to 22 karat
Fineness versus karat
Karat measures purity in 24ths. Pure gold is 24 karat, so 22 karat is 22/24, or 91.6%. Investment and wholesale products are usually described by fineness; jewellery is more often described in karats.
Why it matters in a quotation
Two bars of identical weight but different fineness contain different amounts of gold, so their value differs. When requesting a quotation, always specify the minimum fineness you require rather than a general term such as "pure gold".
Checklist for buyers
- State the required fineness explicitly
- Confirm whether a higher fineness is acceptable
- Agree the documentation that will accompany the goods