Gold Valuation Guide
Calculating the value of gold involves three key factors: Weight, Purity (Karat), and the current Market Price.
1. Understanding Purity
24K (99.9%): Investment-grade pure gold.
22K (91.6%): Standard for Indian jewelry.
18K (75.0%): Used for diamond jewelry.
14K (58.3%): Durable and affordable everyday wear.
2. Calculation Formula
The Price
is calculated using the following logical formula:
Value = (Weight × Market Price) × (Karat / 24)
3. Fees and Taxes
- Making Charges: Usually 5% to 20% depending on the design.
- GST/Taxes: Don't forget to add local sales tax (like 3% GST in India).
- Hallmarking: Always look for the BIS hallmark for authenticity.