Gold price calculators are used to calculate the value of your gold. In certain circumstances, you may wish to sell or even, buy gold. Either for an investment or personal use, you should always calculate the gold value using gold price calculators.
The first steps in order to determine the value of your gold you should:
1) Gold Purity (Karatage) - Find out the purity of the gold asset. Prices different based on the purity being 24k, 22k, 18k or 9k Gold. Purity is categorized and measured in Karatage (karats, K).
2) Gold Weight - Gold price calculators require the weight of the gold, normally in grams (g) if less than 1kg. Obviously, if above 1kg, you may want to us kilograms (kg) instead to make life simpler.
3) Wastage's - Gold wastages can be applied and set by a jeweller and can normally increase the cost thus decreasing the value of your gold by a set percentage. Jewellers can legally charge up to 9%, some may go above this rate.
You wish to buy Gold Bangles with additional stones or pieces.
The jeweller gives you the following information:
Gold you want to sell:
Weight: 39 grams
Purity: 22K (91.6%)
Making Charges - 100/gram
Step 1 - You should ask for the current gold rate. In this example, we shall use today's gold rate of 3,104 INR per Gram. (Price on the 30th May 2018)
The calculation is as follows:-
(((Gold Weight x Gold Karatage) + Wastage's) x Gold Rate) 39 x 91.6% + 9% x 3104 = 86250 INR
To break this calculation in order to make it understandable:
a) 32*91.6% = 29.312
b) 10%*29.312 = 2.9312
c) 29.312 + 2.9312 = 32.2432
d) 32.2432*2675 = 86250.56
(((32x0.916) + (0.10*(32x91.6%))) x 2675)
Making Charges - Gold Weight x Making Charges/gram. = 39 x 100 = 3900.
Total Calculated Price = (Calc 1 + Calc 2) = 86250.56 + 3900 = 90150.56INR.
So, according to the above, we have calculated the following:
Gold price calculators will determine the same outcome. However, if your jewellery has rubies, stones, diamonds or other precious stones, the jewellery should calculate this simply by the stone weight and carats.