Gold Karats, Grams and Ounces: A Guide for Gulf Buyers
Spot gold is quoted in US dollars per troy ounce, but in the Gulf gold shops price by the gram and by karat. Here is how to connect the two.
Troy ounces and grams
Gold uses the troy ounce, which is heavier than a normal ounce.
- 1 troy ounce = 31.1035 grams
- 1 kilogram = 32.15 troy ounces
- 1 tola (used in parts of the Gulf and South Asia) = 11.66 grams
What karats mean
Karat (K) measures purity out of 24 parts.
| Karat | Gold content | Common use |
|---|---|---|
| 24K | 99.9% | Bars and coins |
| 22K | 91.6% | Traditional jewellery |
| 21K | 87.5% | Very popular in Kuwait and the Gulf |
| 18K | 75.0% | Modern and diamond jewellery |
From spot price to price per gram
price per gram (24K) = spot price ÷ 31.1035
Then multiply by the purity for other karats. Example with spot at $4,000:
| Karat | USD per gram (gold value) |
|---|---|
| 24K | $128.60 |
| 22K | $117.80 |
| 21K | $112.53 |
| 18K | $96.45 |
To convert to Kuwaiti dinars, multiply by the current USD/KWD rate (the dinar is pegged to a basket of currencies, so the rate changes a little over time).
Why the shop price is higher
Jewellery prices include a making charge for the craftsmanship, plus the shop's margin. When selling gold back, shops usually pay close to the gold value only, minus a small fee. Bars and coins have much lower premiums than jewellery, which is why investors prefer them.