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gold carat system

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tali122 | 23:35 Thu 17th Nov 2005 | How it Works
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can someone explain the gold carat system - if im correct the higher carat figure doesnt mean a higher price?- so how does it work?
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24 carat = pure gold. 18 carat = 75% gold (18/24) etc. The price depends on the total amount of gold in the item.
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