From the ounce price to the local gram price

The global gold price is quoted in dollars per ounce, and with a simple calculation you can estimate the gram price in your own currency.

What the ounce is

The ounce used for gold is the troy ounce, which weighs 31.1035 grams.

It differs from the ounce used to weigh food, so keep this difference in mind when calculating.

When you see the gold price in global news, it is usually the price of one ounce in dollars, not the price of a gram.

The basic formula

The price of one gram of pure gold in local currency roughly equals the ounce price in dollars divided by 31.1035, then multiplied by the dollar exchange rate.

The result is the price of a 24 karat gram before workmanship and before any local differences.

This formula is approximate because it leaves out fees and profit margins, but it is enough to tell whether the price you are offered is reasonable.

طبق ما تقرؤه على سعر اليوم في تطبيق صاغة اونلاين: الأسعار لحظة بلحظة وحاسبة الذهب والمصنعية وتنبيه السعر، مجانا افتح التطبيق

Calculating other karats

Multiply the 24 karat price by the purity ratio of the karat you want, so 21 karat is 21 out of 24, or about 0.875.

18 karat is 0.75 and 22 karat is about 0.916, which gives you the theoretical price for each karat.

This way you can compare the posted prices for each karat and check that they are consistent with one another.

Why the actual price differs

The shop price usually adds workmanship, and it may differ because of the exchange rate actually used in the local market.

There is also a gap between buying and selling prices and a local premium based on supply and demand, so treat the calculation as a useful estimate, not a final price.

Even so, the calculation gives you a reference point that helps you ask the right questions when buying or selling.