Why the same gold has different "prices"
When you check a gold rate, you may see several numbers. One shop quotes a price per tola. A website shows a price per gram. The international market quotes a price per troy ounce. It can feel confusing.
The good news: it is all the same gold. The only thing that changes is the unit of weight. A larger unit holds more gold, so it has a bigger number. A smaller unit holds less gold, so it has a smaller number. Once you know the weight of each unit, you can move between them in seconds.
The four common weight units
Here are the units you will meet most often, and how much each one weighs in grams.
| Unit | Weight in grams | Where it is used |
|---|---|---|
| 1 gram | 1 gram | Everywhere; the base unit |
| 10 grams | 10 grams | India and many other markets |
| 1 tola | 11.6638 grams | Pakistan, India, Gulf region |
| 1 troy ounce | 31.1035 grams | Global market (spot price) |
Note that a troy ounce is not the same as the kitchen ounce. A troy ounce is heavier and is used only for precious metals.
Start with the spot price
The world gold market quotes one main number: the spot price. It is given in US dollars per troy ounce. Every other price you see is built from this number.
To move from a troy ounce to a gram, you divide by 31.1035, because one troy ounce holds that many grams. That single step is the key to all the other conversions.
Worked example: spot price to per gram
Say gold is $2,000 per troy ounce. This is a made-up number, used only for the math.
- Per gram = $2,000 ÷ 31.1035 = about $64.30 per gram.
Now you have the price of one gram of pure gold. From here, every other unit is just multiplication.
Worked example: per gram to per tola and per 10g
- Per tola = $64.30 × 11.6638 = about $750 per tola.
- Per 10 grams = $64.30 × 10 = about $643 per 10 grams.
Same gold. Three different numbers. The tola number is the biggest here because a tola weighs more than 10 grams, which weighs more than 1 gram.
Don't forget purity (karat)
The math above is for pure gold. But most jewellery is not pure. Purity is shown in karats. These are the standard values:
- 24K = 99.9% pure
- 22K = 91.6% pure
- 21K = 87.5% pure
- 18K = 75% pure
To get the price of a lower karat, multiply the pure price by its purity. For example, if pure (24K) gold is $750 per tola, then 22K gold is $750 × 0.916 = about $687 per tola. This is why a 22K necklace costs less per gram than a 24K coin of the same weight.
Local currency and dealer premium
The spot price is in US dollars. To see it in rupees, dirhams, or any local money, you convert using the day's exchange rate. That is why gold rates move even when the dollar price barely changes. The currency rate matters too.
Also, a shop rate is usually a little higher than the raw market rate. Jewellers add making charges and a small premium for the piece. So the market price is your reference point, not always the final till price.
A quick conversion cheat sheet
Keep these steps handy when you compare prices:
- Start with the per-gram price (spot ÷ 31.1035 if you only have the ounce price).
- Per tola = per gram × 11.6638.
- Per 10 grams = per gram × 10.
- Per troy ounce = per gram × 31.1035.
- For karat, multiply by purity: 22K × 0.916, 21K × 0.875, 18K × 0.75.
How to compare two quotes fairly
The safest way to compare shops is to bring everything back to one unit, usually the per-gram price for the same karat. If one shop quotes per tola and another per 10 grams, convert both to per gram first. Then you are comparing like with like, and the cheaper option becomes clear.
This is general information to help you understand pricing, not financial advice. Always confirm the current rate and any charges with your local dealer before you buy or sell.