How Gold Prices Work
Try the gold profit calculator
Quick answer: gold is quoted as a spot price in US dollars per troy ounce of pure gold. To compare quotes, convert units (1 troy ounce ≈ 31.1035 g, per NIST), adjust for purity (karat ÷ 24, so 22K ≈ 91.7% pure), convert the currency, then add the dealer premium or spread. Price per gram of pure gold = spot per ounce ÷ 31.1035.
Related: Gold profit calculator · Gold buy-sell spread explained.
A gold quote packs several choices into one number: the market reference price, the unit, the purity, the currency and the dealer's margin. This guide explains each part so you can compare quotes on a like-for-like basis. Talreon does not publish a live gold price; prices move throughout the day, so always check a current source before you transact.
What is the gold spot price?
The spot price is the reference price for wholesale gold for immediate delivery. It is usually quoted in US dollars per troy ounce of pure (fine) gold. A widely used benchmark is the LBMA Gold Price, set twice each London business day, and data providers such as the World Gold Council publish spot and historical prices in many currencies.
You will rarely buy at exactly the spot price. Retail products are priced from it, plus a premium, and dealers buy back below it.
Troy ounces, grams and tael
Gold is weighed in troy ounces. One troy ounce is about 31.1035 grams (see the NIST conversion table in the sources). Many dealers in Singapore and Malaysia quote per gram instead, so convert before comparing.
Price per troy ounce = price per gram × 31.1035
For example, with a hypothetical quote of $3,110.35 per troy ounce, the price per gram is $3,110.35 ÷ 31.1035 = $100.00. The number is illustrative only and is not a current price.
Karat and purity
Spot prices refer to pure gold. Products with lower purity contain less gold per gram, so their metal value is lower.
| Marking | Approximate gold content |
|---|---|
| 24K (999 or 999.9) | 99.9% or more |
| 22K (916) | 91.6% |
| 18K (750) | 75.0% |
Using the same illustrative $100.00 per gram of pure gold, 10 g of 22K (916) gold contains 10 × 0.916 = 9.16 g of gold, worth about $916.00 before premiums, workmanship charges or deductions.
Currency conversion
Because the benchmark is usually set in US dollars, a local price in SGD or MYR reflects both the gold price and the exchange rate. Gold can rise in US dollars while falling in your currency, or the reverse, if the exchange rate moves. When you compare your buy and sell prices, use the same currency for both, which is how the gold profit calculator works. Its currency picker only changes the symbol; it does not convert.
Premiums, spreads and fees
- Premium: the amount a dealer charges above the metal value for minting, distribution and margin. Small bars and coins usually carry higher premiums per gram than large bars.
- Spread: the gap between the dealer's selling and buying price. See gold buy-sell spread explained.
- Workmanship charge: common on jewellery and usually not recovered when you sell.
- Other costs: storage, insurance, delivery or assay fees, plus any taxes where you live.
Reading a quote step by step
- Check the unit (troy ounce, gram or another unit) and convert if needed.
- Check the purity and work out the gold content.
- Confirm the currency.
- Ask for both the dealer's selling and buying price at the same moment.
- Enter your figures in the gold profit calculator, with fees in the fee field.
Common mistakes
- Comparing a per-gram local quote with a per-ounce US-dollar spot price.
- Valuing 22K jewellery at the 24K price.
- Treating a news spot price as the price a dealer will pay you.
- Ignoring exchange-rate moves when judging a gain.
Frequently asked questions
Does Talreon show a live gold price?
No. Prices change through the day, so Talreon does not display one. Check a live source such as the World Gold Council or your dealer's board and enter the price into the gold profit calculator yourself.
Is a troy ounce the same as a regular ounce?
No. Gold is weighed in troy ounces. One troy ounce is about 31.1035 grams, heavier than the 28.35-gram ounce used for everyday goods.
Why is 22K jewellery cheaper per gram than a 24K bar?
22K gold is about 91.6% pure, so each gram contains less gold. Jewellery also often carries a workmanship charge, so compare the metal value separately.
Why is my local price different from the spot price in the news?
News prices are usually quoted in US dollars per troy ounce for wholesale bullion. A local quote converts to your currency and unit, and adds the dealer's premium and spread.
How do I convert the gold price per ounce to per gram?
Divide the price per troy ounce by 31.1035. For example, $4,160 per ounce is about $133.75 per gram of pure gold.
How pure is 22K gold?
22 ÷ 24 ≈ 91.7% pure gold. 24K is treated as pure, and 18K is 75%.
Sources
- World Gold Council: Gold prices: spot and historical price data in several currencies.
- LBMA: Precious metal prices: the LBMA Gold Price benchmark.
- NIST: Conversion factors for precious metal sales: troy ounce and gram conversions.
Related tools
- Gold profit calculator: profit or loss from quantity, buy price, sell price and fees.
- Percentage calculator: what share one number is of another.
- Inflation calculator: how rising prices change purchasing power.
Related guides
- Working out the gold price per gram in Singapore and Malaysia
- How gold profit is calculated: combine spread, fees and quantity.
- Gold buy-sell spread explained: why bid and ask differ.
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