Yes, a higher karat of gold does mean that it's closer to 100% gold. Pure gold is stated as being 24 karat. Therefore, 50% gold would be 12 karat and 75% gold would be 18 karat.
When made into jewelry, pure gold is not always used. Using a mixture of other metals not only serves to save money, but also makes jewelry that may be more rigid and resistant to bending and damage. This can be beneficial if the jewelry is intended for daily wear.
There are many different tests for gold. Some options include using a magnet, acid or scraping the gold along porcelain tile. However, gold testing kits may also be purchased.
I would recommend that you avoid many of the do-it-yourself strategies, as some of them will damage jewelry. Sources: scientificamerican.com/article.cfm?id=is... howtotestgold.com.
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