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It means that the gold components of that pocket watch are made of 18 karat gold. The max is 24 karat gold (pure gold). Most high end jewelry are made of 18 karat and very rarely 21 karat. There are no 24 karat as they would be at high risk since pure gold is very malleable (can bend easy). Since 18 karat and 21 karat are not 100% pure they are mixed with usually copper for yellow gold or silver if you have white gold.

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