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1. A way of measuring the mass of a gem. One karat is 200 milligrams.

2. A way of measuring the purity of gold or platinum. One karat is 1/24 purity; that is, 24 karat gold is pure gold.

In both cases, karat can also be spelled carat.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


A measure of the purity of gold. Pure gold is indicated by the label 24 karat. See also fineness.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Lulo and Mothae produce large and high-value diamonds, with >75% of revenues from both mines generated from the recovery of +4.8 carat stones.
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In addition to establishing the stone's weight (in carats), the agency grades the stone against established standards for color, clarity, and cut.
The Cullinan Mine is renowned for the discovery of the largest rough gem diamond ever found at 3106 carats and is now form part of the Crown Jewels in the Tower of London.
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