Gold prices

How your local gold price is set

The gram price in any Arab country rests on two numbers: the price of a gold ounce on the global market in dollars, and the dollar's rate against the local currency. An ounce is 31.1 grams, so the 24 karat gram price comes from dividing the ounce price by 31.1 and multiplying by the dollar rate. That is why your local price can move even when the global market is flat. The dollar moving is enough on its own.

What the karat number means

Karat states how much pure gold is in the piece. 24 karat is essentially pure, 21 karat means 21 parts gold out of 24, which is about 87.5%, and 18 karat means 75%. So the gram price at 18 karat is lower than at 21 karat by a fixed ratio, not by the shop's discretion. 21 karat dominates jewellery in Egypt and the Gulf, while 18 karat is more common in Europe.

Buy price, sell price, and making charge

When you buy, you pay the gram price plus a making charge. When you sell, you receive the gram price minus the shop's margin, and the making charge is gone. That charge is the fee for crafting the piece, it varies by design and by shop, and none of it comes back on resale. This is why the gap between what you pay and what you get is noticeable, and why bullion has a narrower gap than jewellery.