Method of calculating the sale and purchase of gold


  • 1 Buying and selling gold
  • 2 steps to buying and selling gold
    • 2.1 Knowing the price per gram
    • 2.2 Knowing the workmanship of gold
    • 2.3 Knowing the price of oil and the dollar

Buying and selling gold

The economic and political crises, inflation and the persistence of sovereign debt issues in the world have led to a lot of people thinking about buying and acquiring gold not only for the purpose of ornamental but also for trade and for resolving crises and bridging debts. Gold prices differ from one place to another and from one country to another, and also differ according to the type of gold and its caliber , Where there are many types and calibrations that the difference between them is in the percentage of gold.

Steps to buy and sell gold

Know the price per gram

It is necessary to know the price per gram of gold with attention to the caliber, which is the amount of purity of gold or the percentage of gold in a piece, and there are four gold calibres arranged according to preference and the proportion of gold as follows:
  • Caliber 24: It is the purest and best type of gold, from which coins and pounds are made of gold and gold bars.
  • Caliber 22: The caliber number is written on the inside of the gold coin. This caliber is made of jewelry in large measure, and its purity number is 0.9167.
  • Caliber 21: It is also written inside the piece and the percentage of gold in it is less than 22, its color is different and its purity is 0.875.
  • Caliber 18: It is the worst, given the large number of impurities in it and the low percentage of gold in it, and the number of its purity is 0.750.

Knowledge of gold workmanship

It is a value added to the price of a gram of gold, because it is the value that is paid to the hands that made the piece, and to find out the workmanship we have to perform the following process:
  • We ask the jeweler about the price per gram of 24 carat, so suppose that it is 35 dinars, and the piece that I want to buy weighs 25 grams of 21 carat, and we calculate the price per gram of 21 carat as follows:
The number of 21 calibers = 0.875.
We multiply the price of 24 caliber by the purity number of the caliber I want, 35 x 0.875 = 30,625 dinars.
The price per gram of 21 carat is 30.625 dinars, and the weight of the piece is 25, so the price of the piece is 25 x 30.625 = 765.625 dinars.
  • The jeweler will not ask 765,625 dinars because the piece is not an alloy but is occupied and the price of workmanship will increase over it, and therefore the price that the jeweler gives us, we subtract from it the price that we calculated, so it is workmanship, so suppose that the jeweler asked for 800 dinars, so it is:
Workmanship = 800-765.625 = 34.375 dinars.
  • It should be known that the more workmanship, the greater the loss when selling, because workmanship will be deducted when selling.

Know the price of oil and the dollar

It should be known that the price of gold is linked to oil and the dollar as follows:
  • The higher the price of oil, the higher the price of gold. The relationship between them is direct.
  • The higher the price of the dollar, the lower the price of gold. The relationship between them is inverse.

Illustrative example:
If the price of a gram of 24 carat gold is 38 dinars, and Nihal wants to sell the piece that she bought from 21 carat weight of 43 grams, and the price of the piece when you bought it is 1500 dinars, what is the amount that you will get when selling the piece, and what is the workmanship amount?
The solution:
  • We calculate the price per gram of 21 carat when Nihal bought the piece, which is: 38 x 0.875 = 33.25 dinars.
  • We calculate the price of the item without workmanship, which is: weight x price per gram.
43 x 33.25 = 1429.75 dinars
  • We calculate workmanship, which is: the price of a piece at the time of purchase - the price of a piece without workmanship.
1500-1429.75 = 70.25 dinars
  • The amount Nihal will receive from the sale is the same as that which was calculated before workmanship
1429.75 dinars.