Gold value comes from four inputs: live gold price, weight, karat purity, and buyer payout percentage.
gold value = weight × 24K price per gram × purity × payout %
Use 100% payout for market value, or 70–90% for realistic selling estimates.
The formula explained
| Input | Meaning |
|---|---|
| Weight | Total item weight (usually grams) |
| 24K price per gram | Live pure-gold price per gram |
| Purity | How much of the item is pure gold |
| Payout % | How much of value a buyer pays |
Step-by-step
1) Find weight and convert units
| Unit | Grams |
|---|---|
| 1 gram | 1.000 g |
| 1 DWT | 1.5552 g |
| 1 troy ounce | 31.1035 g |
| 1 tola | 11.6638 g |
2) Find karat purity
| Marking | Karat | Purity |
|---|---|---|
| 417 | 10K | 41.7% |
| 585 | 14K | 58.5% |
| 750 | 18K | 75.0% |
| 916 | 22K | 91.7% |
| 999 | 24K | 99.9% |
3) Apply live 24K price
24K price per gram = spot price per troy ounce ÷ 31.1035
4) Choose payout
| Scenario | Payout |
|---|---|
| Market value | 100% |
| Strong buyer offer | 90% |
| Typical scrap estimate | 80% |
| Conservative estimate | 70% |
Example: 14K gold value
12 g × 60 × 0.585 = $421.20 (market value). At 80% payout: $421.20 × 0.80 = $336.96.
More worked examples
| Scenario | Inputs | Result |
|---|---|---|
| 18K chain | 8 g, 0.750, $60/g, 100% | 8 × 60 × 0.750 = $360.00 |
| 18K chain sell offer | 8 g, 0.750, $60/g, 80% | $360.00 × 0.80 = $288.00 |
| 22K bangle | 20 g, 0.917, $60/g, 90% | 20 × 60 × 0.917 × 0.90 = $990.36 |
| 10K mixed lot | 30 g, 0.417, $60/g, 75% | 30 × 60 × 0.417 × 0.75 = $562.95 |
Common mistakes that lower estimate accuracy
- Including stones, clasps, and non-gold parts in net-gold assumptions.
- Mixing multiple karats in one bucket without separate calculation.
- Using stale price snapshots for fast-moving sessions.
- Ignoring payout % and comparing market value directly to buyer offers.
- Converting currencies with outdated rates or manual approximations.
Market value vs selling value
Market value is pure metal value. Selling value also depends on payout policy, testing/refining costs, item condition, local demand, and whether non-gold parts are included in gross weight.
What affects buyer payout in practice?
| Factor | Impact on offer |
|---|---|
| Assay certainty | Higher confidence can improve payout band |
| Lot size | Larger lots may receive tighter spreads |
| Refining complexity | Mixed-metal items often get discounted |
| Market volatility | High volatility can widen buyer margins |
| Local competition | More buyers usually means better quotes |
FAQ
How much is my gold worth today?
Use live 24K per-gram price, apply your karat purity, then multiply by item weight and payout scenario.
Should I use market value or payout value?
Use market value for intrinsic metal benchmarking, payout value for realistic selling decisions.
Can I calculate with tola or ounce?
Yes. Convert unit to grams first, then run the same formula.
Is this a legal appraisal?
No. It is a pricing estimate framework based on live spot and conversion assumptions.