Gold sounds simple — until you realise tola, gram, ounce, 24k, 22k and 18k are five different conversation killers.
There is a lot of jargon around this one. Strip it away and the math is genuinely simple. Gold sounds simple — until you realise tola, gram, ounce, 24k, 22k and 18k are five different conversation killers.
Gold value = weight × (purity / 24) × spot price per same unit
Gold is alloyed with other metals for strength. The karat number tells you what fraction is actual gold. A '22k' chain is 91.67% gold by mass.
Jewellers add 8–25% as making charges. Retail sell-back is usually 3–7% below spot. Knowing both prevents a bad swap.
As a 5–10% portfolio hedge against currency depreciation and inflation. Not as a primary growth engine.
When you need liquidity, or when local currency has weakened sharply (gold often appreciates in nominal terms during that time).
What is the difference between 24k and 22k? 24k is pure gold (soft, mostly bullion). 22k is 91.67% gold (jewellery standard). 24k holds value best; 22k wears better.
Is buying gold online safe? Yes from established mints and dealers with serial-numbered bars. Avoid no-paperwork marketplace listings.
If you only remember one thing from this post, make it that the inputs matter more than the calculator. Try the How to Value Your Gold linked above to put these numbers to work right now.