Gold Value Calculator
| Purity of Your Gold (916, 840 etc.) | |
| Weight of Gold (grams) |
How to Calculate Gold Value from Today’s 24 Carat Gold Price
(Simple Step-by-Step Guide)
Here are the details regarding gold price calculation in India, where the 24 carat gold rate is used as the base value to determine the price of 916 gold and other purities. The calculation is done by multiplying the 24 carat price per gram with the gold purity factor, such as 0.916 for 916 gold or 0.840 for 840 gold. This method explains how to calculate gold value accurately, how gold purity affects price, and how to estimate the real market value of pledged or pawned gold before any deductions. Understanding this calculation helps sellers compare prices fairly and sell pledged gold at the best possible value based on purity and weight.
Many people own 916 gold jewellery or lower-purity gold, but the daily gold price shown in news and Google is always for 24 carat (pure) and 22 carat (916) gold.
To know the real value of your gold, you must convert the 24 carat price into the price for actual purity of your gold.
So, gold value is calculated by converting the price of pure 24-carat gold to match the actual purity of the gold ornament. This is done by multiplying the 24-carat gold rate by the purity factor, such as 0.916 for 916 gold. This gives the true market value, especially for pledged or pawned gold. Here we explain the calculation with clear examples.
What is 24 Carat Gold?
- 24 carat gold = 99.9% pure gold
- It is mainly used for gold bars and coins
- Daily gold price (per gram) is always quoted for 24 carat gold
Example:
What is 916 Gold?
- 916 gold = 91.6% pure gold
- Also called 22 carat gold
- Most Indian jewellery is made of 916 gold
How to Calculate 916 Gold Price from 24 Carat Price
Formula:
24 Carat Price × 0.916
Example Calculation
This is the maximum value before deductions like:
- Stone weight
- Making charges
- Pawn shop interest (if gold is pledged)
What if Gold Purity is 840?
Some jewellery or old gold items have lower purity, such as 840 gold.
- 840 gold = 84.0% pure gold
- Purity factor = 0.840
Formula for 840 Gold
24 Carat Price × 0.840
Example Calculation
Common Gold Purity Conversion Table
| Gold Purity | Carat Value | Multiply By |
|---|---|---|
| 999 | 24K | 0.999 |
| 916 | 22K | 0.916 |
| 900 | — | 0.900 |
| 840 | — | 0.840 |
| 750 | 18K | 0.750 |
Why Gold Loan Shops Pay Less Than This Value?
If your gold is pledged, gold loan shops may deduct:
- Interest amount
- Processing charges
- Valuation loss
- Short weight calculation
That is why many customers receive less than market value.
How Our Gold Pledged Recovery Service Helps You
We help customers:
- Recover gold from pawn shops
- Understand actual gold value
- Avoid unnecessary deductions
- Sell gold at better market price
Our service is consultation-based and focused on customer benefit.
Key Takeaway
- Always start with 24 carat gold price
- Multiply by your gold purity
- This gives the true gold value per gram
- Knowing this helps you avoid losses
Now you have a clear idea about how to calculate today’s gold price correctly by starting with the 24 carat gold rate and converting it into the actual value of 916 gold and other purities using a simple multiplication method. It answers common questions such as “how to calculate gold value,” “how to find 916 gold price from 24 carat,” and “how gold purity calculation works in India.” The explanation is especially useful for people who have pawned or pledged gold, as it shows how to estimate the true market value of pledged gold before deductions. By understanding this calculation, customers can compare offers, avoid undervaluation by pawn shops, and sell pledged gold at the best possible price based on purity and weight.*
*This information is provided for educational purposes.
Actual valuation may vary based on purity testing and market conditions.
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For valuation guidance, speak to a gold expert 📞 8089243515
See Also ✨ List of Assaying & Hallmarking Centres
Frequently Asked Questions (FAQ)
How is gold value calculated from the 24 carat gold price?
Gold value is calculated by multiplying the 24 carat gold price per gram with the purity factor of the gold. For example, 916 gold is calculated by multiplying the 24 carat price by 0.916.
How do I calculate the price of 916 gold from the 24 carat rate?
To calculate the price of 916 gold, multiply the 24 carat gold price by 0.916.
Example: If 24 carat gold is ₹12,485 per gram, then 916 gold value is ₹12,485 × 0.916 = ₹11,436.26 per gram.
What does 916 gold mean?
916 gold means the gold is 91.6% pure. It is also known as 22 carat gold and is commonly used for jewellery in India.
How is gold value calculated for lower purities like 840 gold?
For lower purity gold such as 840, multiply the 24 carat gold price by 0.840. This gives the approximate value per gram before any deductions.
Why does pledged or pawned gold get valued lower than market price?
Pawned or pledged gold may be valued lower due to interest charges, processing fees, stone weight deductions, or conservative valuation methods used by pawn shops.
Can this method be used to estimate pledged gold value before selling?
Yes. This calculation helps estimate the true market value of pledged gold before deductions, allowing customers to compare offers and avoid undervaluation.
Is the daily gold price always for 24 carat gold?
Yes. The gold price shown in news, Google, and financial websites is almost always the 24 carat (pure gold) price per gram.
Does this calculation include making charges or stone value?
No. This calculation gives the pure gold value only. Making charges, stones, and other additions are usually not included when selling or pledging gold.
Why is it important to know gold purity before selling gold?
Knowing gold purity helps determine the correct value per gram, prevents underpricing, and ensures the seller receives a fair value based on actual gold content.