Gold Value Calculator
Estimate the market value of your gold instantly.
Understanding Gold Price Calculation
Calculating the value of gold involves understanding three primary factors: weight, purity (fineness), and the current live market spot price. Whether you are looking to sell old jewelry or invest in bullion, knowing the math behind the price is essential.
1. The Weight Factor
Gold is traditionally measured in Troy Ounces, which is different from a standard kitchen ounce. One troy ounce is equal to approximately 31.1035 grams. In different regions, other units like Tola (common in South Asia, roughly 11.66g) are used. Our calculator handles these conversions automatically to ensure accuracy.
2. Gold Purity (The Karat System)
Pure gold is 24 Karats. However, pure gold is very soft, so it is often mixed with other metals to create durable jewelry. The karat number tells you how many parts out of 24 are pure gold:
- 24K: 99.9% Pure
- 22K: 91.7% Pure (Common in investment coins)
- 18K: 75.0% Pure (Standard for high-end jewelry)
- 14K: 58.3% Pure
3. The Formula
The calculation used by professionals is as follows:
Total Value = (Weight in Troy Ounces) × (Purity Percentage) × (Current Spot Price)
Example Calculation
If you have a 10-gram ring made of 18K gold and the current spot price of gold is $2,000 per troy ounce:
| Step | Calculation | Result |
|---|---|---|
| Convert weight to Troy Ounces | 10g / 31.1035 | 0.3215 oz |
| Determine Purity | 18 / 24 | 0.75 (75%) |
| Calculate Value | 0.3215 × 0.75 × $2,000 | $482.25 |
Factors Influencing Gold Prices
The price of gold fluctuates daily based on global economic conditions. Key drivers include central bank reserves, the strength of the US dollar, jewelry demand, and geopolitical stability. When the dollar weakens or inflation rises, investors often flock to gold as a "safe haven" asset, driving the price up.