Gold Education
Gold Basics
From the World Price to the Price in Your Shop
The number in the headline is not the number on your invoice. Four layers sit in between, and knowing them is how you tell a fair quote from a bad one.
Gold has one world price, quoted per troy ounce of 24K metal. What you pay is that price plus a stack of local costs. None of them are secret, but very few shops volunteer the breakdown.
The four layers
- 1
The world price, converted
Spot per ounce, divided by 31.1035 for grams, then converted at today’s exchange rate. This is the only layer set by the global market. - 2
Import duty and levies
Set by your government. This is why the same gram costs different amounts in different countries on the same day. - 3
VAT or sales tax
Applied to the invoice, and in many places to the making charge as well. - 4
Making charge and dealer margin
The shop’s labour and profit. On jewellery this is the biggest and most negotiable layer.
Why your local price can rise on a quiet day
Two things move your price: the world price, and your currency. If the taka or rupee weakens against the dollar, local gold rises even when the world price has not moved at all. On some days the currency is the entire story.
Using this when you buy
- Ask for the rate per gram — Then check it against the world price yourself.
- Ask what the making charge is, as a number — "It is included" means you are not being told.
- Compare buy-back, not just the sale price — Two shops with the same rate can differ by 8% on what they pay you back.
- Never compare across countries — Duty and tax make it meaningless.
Check today’s rate yourself
Our converters run against the live world price.