How Much is Gold Worth per Gram
Even though the price of gold is quoted in Troy Ounces, people are generally more familiar with grams as a unit of weight and therefore the question ‘How Much Is Gold Worth Per Gram’ is very common. Given the massive increase there has been in the price of gold during the course of the last decade, there is a lot of interest in gold and its price. People are cashing in right now on gold jewelry and scrap gold that they thought were pretty worthless. With the recent highs that gold prices have reached, now could be the perfect time to sell. You can use the optimised calculator below to help you figure out just how much a single gram of gold is worth.
Instant ‘How Much is Gold Worth per Gram’ Calculator
How to Calculate How Much Gold is Worth per Gram
Since gold is quoted in Troy Ounces, one has to start by knowing how many grams there are in a Troy Ounce in order to calculate how much gold is worth per gram. This is where many people make a mistake because the Troy Ounce is not what we commonly understand the ounce to be.
For example when baking a cake with an ounce of flour, the ounce here is in fact the ‘Avoirdupois’ ounce. Troy Ounces are used only for precious metals and these two kinds of ounces weigh different amounts.
|Gold & Precious Metals||Troy Ounce||31.10 grams|
|Anything Else||Avoirdupois Ounce||28.35 grams|
Therefore, in order to calculate how much gold is worth per gram, the following equation is used:
Price of Gold in Grams = Price Of Gold Per Troy Ounce / 31.10
Many people do not understand this difference and it can cause confusion when coming to buy or sell gold. For example:
Katy wants to sell her gold necklace, so she looks up the spot price of gold quoted in ounces, and records a price of $1000/ounce for example.
The price of gold per gram is therefore,
$1000/ 31.10g (grams in Troy Ounces) = $32.15/gram (Correct)
But Katy uses the Avoirdupois conversion to calculate,
$1000/ 28.35g = $35.27/gram. (Wrong)
She telephones a gold dealer and demands a price based on $35.27/gram when in fact the fair price is only $32.15/gram! The dealer is not interested in buying and Katy is left confused.
Remember, Purity also counts
Bear in mind that the quote for gold is based on 24 karat bullion. Jewelry gold is generally not 24 karat and therefore the calculation must be adjusted based on its karat. For example 18 karat jewelry is in fact only 75% pure gold (18/24 = 0.75).
Therefore the formula to calculate how much a gram of gold is worth must be adjusted as follows:
(Price Of Gold Per Troy Ounce / 31.10) * (karat/24)
Luckily for you , the ‘How Much Is Gold Worth Per Gram’ calculator above will do all these calculations for you instantly or you can use any of the following karat-specific calculators: