What 22k gold is
22k gold is 22 parts gold out of 24, which is 91.6% pure gold. The rest is other metals, such as silver and copper, that make it harder than 24k. That is why 22k jewellery is often stamped 916.
Why Indian and Pakistani buyers choose 22k
In India and Pakistan, most traditional jewellery is made in 22k. It keeps the deep yellow colour of high-purity gold and is still hard enough for bangles, chains and wedding sets that are worn every day. Many buyers from these countries, whether they live in the UAE or are visiting, ask for the same karat in Dubai.
Many of them also price gold in their own units: the tola (11.664 g), used in India and Pakistan, and the pavan (8 g of 22k), used in South India.
Working out the final price of a 22k piece
Final price = (weight × 22k rate + weight × making charge) × 1.05. For a 20-gram 22k bangle with a making charge of AED 20 per gram: 9,210.00 + 400 = 9,610.00, plus 480.50 VAT, about AED 10,091 in all.
For intricate designs the making charge rises to about AED 30-80 per gram, so it becomes a larger part of the price. Ask for it per gram before the piece is weighed.
Tourists can reclaim most of the VAT when they leave the UAE. When you sell a piece later, shops pay for the gold in it, not for the making charge.
22k compared with 24k and 21k
24k is pure gold and costs AED 36.75 more per gram than 22k today. It is softer, so it suits bars and coins more than everyday jewellery. A 24k bar of 99% purity or more that trades on bullion markets is zero-rated for VAT, while 22k jewellery carries 5%.
21k is 87.5% gold and is the karat many Arab buyers choose. It costs AED 19.00 less per gram than 22k today.