How to calculate the price of gold per ounce.

Knowing the price of a piece of gold depends on following a series of calculations and conversions, which we will detail below:

The price of gold is set by the international market and its value is published in US dollars per troy ounce. However, this measurement is not in everyday use and can be confusing if you are looking to calculate the price of a piece of gold you own and want to sell, or if you want to buy gold as an investment.

We will explain the process to follow to perform this calculation in a simple way.

The Troy Ounce

The Troy Ounce is a unit of measurement used to refer to the weight of precious metals. There are exactly 31.103 grams in 1 troy ounce and 32.150 troy ounces in 1 kg.

So,

1 troy oz = 31.10 grams

Price per Ounce

To calculate the price of a piece in terms of the ounce, we must know the amount of fine gold in troy oz and multiply it by the current price per ounce of gold.

For example, we will value a gold coin with a fine gold content of 1/2 oz, assuming the price per troy ounce of gold is $1,924.31:

0.25 x 1,924.31 = $481.07

The price of the coin will be around $481.07. This value is approximate as there may be percentage variations between sellers.

Calculating the Value of a Gram from an Ounce

We can obtain an approximate value for gold pieces of different purities from the value of an ounce. It only requires a simple conversion from troy ounces to grams:

Value of a troy ounce of gold / 31.10 = value of a gram of gold (24k)

For example: 1 troy ounce of gold = 1924.31 (reference value)

1926.40 / 31.10 = 61.94 USD

The value of a gram of gold would then be 61.94 USD

How to Calculate the Price of a Gold Piece

Determining the price of a gold piece depends on following a series of calculations and conversions, which we will detail below:

Gather the Data

To perform this calculation, you will need:

The current price of a troy ounce of gold: Research the price of gold per ounce. Make sure you get it from reliable sources. Financial newspapers usually provide this information up to date; however, it can fluctuate throughout the day. Recommended sites for obtaining the gold price per ounce include Kitco and Goldprice.

Calculate the price per gram of gold using the formula:

Value of troy ounces of gold / 31.10 = Value of a gram of pure gold (24K)

1926.40 / 31.10 = 61.94

Weight of the gold piece: Determine the weight using a scale in grams. If you don't have one, you should take the piece to a jewelry store or an appraisal house.

Purity of the gold piece: It is usually engraved within the piece and expressed in carats. The most common are 24, 18, and 14 carats.

The fine gold content of the piece: The purity of gold is measured in carats. The gold alloy is divided into 24 parts. For example, an 18-karat piece contains 18 parts fine gold and 6 parts other metals.

In the case of gold, due to the conditions of its production, it is not 100% pure, so it is considered 99.9% (24k) fine gold.

To calculate the fine gold content of a piece, we will use the following formula:

Weight of the piece x carats / 24

Example: A 10-gram piece with 18K

10 x 18 / 24 = 7.5

The fine gold content is 7.5 grams

Another way to deduce the actual amount of gold is with the fineness of the piece:

24K = 0.999

18K = 0.750

14K = 0.583

Weight of the piece x fineness = actual fine gold content

Example: A gold piece weighing 10 grams and with a fineness of 0.750

10 x 0.750 = 7.5 grams of gold.

Final Price

Once all the necessary data has been collected, we can calculate the approximate value of the piece by simply multiplying the fine gold content in grams by the price per gram of gold:

Weight of fine gold x price per gram of gold = price of the piece

Example:

A 10-gram piece of 18k gold has a net fine gold content of 7.5 grams.

7.5 x 61.94 = $464.55 USD

This calculation would give us an approximate price based on the daily quote per ounce or gram of gold. Some buying and selling premiums should be considered, as well as possible variations in commission percentages between sellers.

If you are making a sale, we recommend using the highest price of the day or the previous one if the market is closed.

It should be noted that these value estimates do not apply to jewelry or antiques, as these have other factors that may affect their value, such as workmanship or historical significance.