Gold price per gram explained
The per-gram gold price is a useful consumer-facing format because it translates the global market into a smaller, comparable unit. Rather than thinking in troy ounces, you can see what pure gold costs by the gram — the weight you actually buy and wear.
How the per-gram number is calculated
The global gold market quotes prices in troy ounces (XAU). One troy ounce equals 31.1035 grams. To convert the spot price to a per-gram number, divide the troy ounce price by 31.1035.
Example calculation:
- Spot price: $3,200 per troy ounce (XAU)
- Formula: $3,200 ÷ 31.1035 = $102.88 per gram
- A 5-gram gold bar would be worth approximately $514.40 at this rate (before dealer markup)
- A 10-gram piece of 24K gold would be worth approximately $1,028.80
This per-gram price updates continuously throughout market hours (roughly Sunday 18:00 UTC through Friday 20:00 UTC). The higher the spot price per ounce, the higher the per-gram figure — they move in lockstep because they are the same commodity quoted in different units.
Purity adjustments for 22K, 18K, and 14K gold
The spot price benchmark is for 24-karat (pure) gold. Most jewelry and purchased bars are not pure — they contain alloy metals for strength and durability. To find the intrinsic gold value in a lower-purity piece, multiply the per-gram spot price by the purity factor.
These calculations assume a spot price of $102.88 per gram (which translates from $3,200 per troy ounce). The actual intrinsic value of your jewelry or bar is the weight in grams multiplied by its purity factor and the current spot price. For example, a 10-gram 22K bracelet has intrinsic gold value of 10 × 0.916 × $102.88 = $942.26.
Why local per-gram prices differ by country
You might see a different per-gram price quoted in India (INR), UAE (AED), or Europe (EUR) than the global XAU figure suggests. This is not an error — it reflects three real differences that stack together.
- Currency exchange rates: A 1% move in USD/INR or USD/EUR rate changes the local-currency-per-gram price even if XAU stays flat. For example, if USD strengthens 2% against INR while gold is unchanged at $102.88/g in dollar terms, the per-gram INR price rises by roughly 2%. If the USD/INR rate is 83.50, then $102.88/g = ₹8,590/g. If the rate moves to 85.21 (2% stronger USD), that same $102.88 becomes ₹8,770/g.
- Local taxes: India applies 3% GST on gold transactions. UAE applies 0% VAT on investment-grade gold. The EU charges VAT at varying rates by country (typically 17–25%). These taxes don't change the underlying metal price per gram, but they affect the final checkout price. A dealer might quote the per-gram metal price separately from the tax line-item.
- Dealer spreads: Each country's jewelry and bullion dealers apply their own buy/sell margins based on their regional cost of operations. A New York dealer might quote $103–$105 per gram spot spread, while a Mumbai dealer quotes ₹8,500–₹8,800 per gram. Both are reflecting the same global XAU move plus their own regional margin.
The per-gram price in your local currency always tracks the XAU move, but it moves through the lens of FX rates and local tax structure. An increase in the spot price of $10/gram might translate to a ₹860/gram increase in India on the same day if FX is stable.
Benchmark versus retail checkout price
The per-gram price we publish is the benchmark spot price — the purest metal, 24K, with no dealer markup or taxes. What you actually pay when you buy is higher. Here is what each transaction type typically costs:
- 5-gram bullion bar at a dealer: Spot is $102.88/g. The dealer quotes $108–$112/g because the bar is cast, assayed, and branded. This 5–9% markup covers fabrication, quality assurance, storage, and dealer margin.
- 22K jewelry from a jeweler: The intrinsic gold value is $94.24/g (22K factor applied to spot). But a jeweler quotes net $96/g or higher because making charges (labor to design and craft the piece) run 12–15% on top of the metal cost. So a 10-gram 22K bracelet's metal is worth ~$942, but the final price is $1,080–$1,130 including the making charges for design and workmanship.
- Scrap gold to a buyer: A scrap buyer pays less than spot because they must refine and recast the gold. A 10-gram piece of mixed-purity scrap might net you only $880–$950 instead of the $1,028 benchmark equivalent. The buyer takes 8–12% as refining margin and their cost to process it.
- Coins (bullion): Coins command a premium over the per-gram spot price because of numismatic value, brand trust, and ease of resale. A 1-ounce gold coin might sell for $3,280 when the spot is $3,200, a 2.5% premium.
Always compare "per gram" quotes in context. The benchmark per-gram price is a reference point for the pure metal cost, not the retail price you pay. The difference between benchmark and checkout price is real value — casting, labor, taxes, brand — not an error.
Frequently asked questions
Is the gold price per gram the same everywhere?
No. The benchmark per-gram price in XAU is the same globally at a given moment (e.g., $102.88/g). But the per-gram price quoted in INR, AED, or EUR will differ by that day's exchange rate. Additionally, local taxes (3% GST in India, 0% VAT in UAE, 17–25% in EU) and dealer spreads vary by region, so the checkout price per gram differs by location even if the underlying XAU move is identical.
Why does my jeweler quote a different per-gram price than the spot price?
Jewelry involves three separate costs: (1) the intrinsic gold value based on purity and weight, (2) making charges for labor and craftsmanship (typically 12–15%), and (3) the jeweler's own margin and profit. A jeweler might quote a per-gram price that looks "different" because it bundles these costs. Always ask for the gram weight, purity (22K, 18K, etc.), and then calculate: gram weight × purity factor × current spot price = intrinsic gold value. The balance is making charges and margin.
How often does the per-gram price change?
Continuously during market hours (Monday–Friday, roughly 18:00 Sunday UTC to 20:00 Friday UTC). On this site, we cache and update the per-gram price every 12 hours to provide a reliable snapshot. For real-time trading or critical decisions, check the live market directly. The 12-hour cache is useful for general awareness and comparing retail quotes without the need to refresh constantly.
What is the best way to compare my jeweler's price to the spot price?
Note the current spot price per gram from our live price page (e.g., $102.88). Ask your jeweler for the weight and purity of the piece you are considering. Multiply: weight × purity factor × spot = intrinsic value. Compare the quoted price to that intrinsic value. The difference is making charges, dealer margin, and taxes. If the difference is 10–20%, that is typical. If it is 35% or more, ask your jeweler to itemize the markup or shop around.