How to Calculate Gold Value by Purity
This page gives you a fast, practical method to estimate value by karat before evaluating final transaction conditions. It is useful for both country comparisons and dealer-level pre-checks.
Core formula
Purity-adjusted value = reference value x purity factor
- 24k factor: 1.0000
- 22k factor: 0.9167
- 21k factor: 0.8750
- 18k factor: 0.7500
- 14k factor: 0.5833
Worked example (simple)
If 24k benchmark is 100 local currency units, then 22k estimated intrinsic value is 91.67, 21k is 87.50, 18k is 75.00, and 14k is 58.33. This is metal-value logic, not final invoice logic.
What to add for final reality
- Fabrication and making charges
- Taxes and local legal components
- Logistics, storage, and merchant premium
Final price can diverge significantly from intrinsic-value estimates when non-metal components are large.
Use this with live country pages
Open a live route, set karat, and use chart windows for timing. Suggested starts: United States, India, Singapore.
FAQ
Can this formula replace all pricing checks?
No. It is a strong baseline, but final pricing includes non-metal components.
Should I use local currency or USD for calculation?
Use the currency in which you will transact, then validate against live local context.