Gold is weighed differently around the world
A gram is a gram everywhere, but almost no gold market quotes in grams alone. London and New York trade in troy ounces of 31.1034768 grams — a unit that has nothing to do with the ordinary ounce used for food, which is 28.35 grams and about 10% lighter. Mixing the two is a costly mistake.
Across South Asia the unit is the tola, 11.6638 grams, defined as exactly three eighths of a troy ounce. Bangladesh calls the same weight a vori. Because it is tied to the troy ounce rather than a round metric figure, ten tola is 116.638 grams rather than a tidy 116, and rounding early is where errors creep in.
The tael problem
The tael is where most conversion errors happen, because the same word means different weights in neighbouring markets.
| Tael | Grams | Used for |
|---|---|---|
| Hong Kong (bullion) | 37.429 | 1.20337 troy ounces — near 1.2 but not exact. The CGSE standard for licensed bullion trading |
| Hong Kong (trade) | 37.7994 | Jewellery and general commerce |
| Taiwan | 37.5 | Local market |
| Mainland China (市兩) | 50 | Metric-aligned, half of a jin |
The Hong Kong bullion tael is 37.429 g, or 1.20337 troy ounces. It is often rounded to “1.2 ounces” in conversation, but the real figure is a little heavier — on a ten-tael order that rounding loses about a gram of metal. It remains the standard used by licensed members of the Chinese Gold and Silver Exchange Society. A quote in "taels" is ambiguous unless you know which one — the gap between 37.429 and 50 grams is a third of the value.
Thailand quotes two baht weights
Thai gold is quoted in baht, and the weight depends on the form. One baht of bullion is 15.244 grams; one baht of ornamental jewellery is 15.16 grams. Both trade at the Thai market standard of 96.5% fineness, roughly 23.16 karat, which sits between the 22K common in India and the 24K sold as investment metal elsewhere.
Vietnam uses the lượng (also written cây or tael) of 37.5 grams, divided into ten chỉ of 3.75 grams. Korea uses the don, also 3.75 grams — the two systems share a root, which is why the small units match exactly.
Purity is written differently too
Karat and millesimal fineness describe the same thing from different directions. 24K is pure, and each karat below that is one twenty-fourth less gold.
- 24K / 999 — investment bars and coins. Too soft for most jewellery
- 22K / 916 — the jewellery standard across India and much of the Middle East
- 21K — common in Gulf markets
- 18K / 750 — the usual choice in Europe and for branded jewellery
- 14K / 585 and 10K / 417 — widespread in the United States
- 9K / 375 — the lowest grade that may legally be called gold in the UK
The UK operates the oldest continuous hallmarking system in the world, running since 1300, and most EU states follow the Vienna Convention marks of 375, 585, 750 and 916. Where you see a three-digit stamp, it is parts per thousand.
Why buying and selling are so far apart
Gold can hold its value exactly and still lose you money on a round trip, because charges land on both ends. Buying adds a making charge or premium — small on bars, often 10–25% on worked jewellery — and then any VAT or sales tax on top. Selling subtracts refining costs and the dealer's margin, and tax paid on purchase is generally not refunded.
Put together, the spread between what a dealer sells at and buys back at commonly runs 15–20%, and wider for intricate jewellery. That is the amount the metal price has to rise before you break even. This calculator shows that break-even figure directly, so you can see what you are actually committing to.
Where the numbers come from
- Spot reference price — the international market price that moves through the trading day. All calculations use this. It is a market reference, not an official benchmark fix, and the provider does not disclose its upstream source.
- Exchange rates — market rates refreshed once a day, cross-checked against a rate computed from the European Central Bank's euro reference rates. The ECB quotes against the euro only, so USD/KRW and similar pairs are cross-rates, not ECB-published figures.
Every figure on this page is converted from the international spot price. It is not a retail quote. Your local shop price includes duties, taxes and margins that vary by country and by dealer. Use the local premium field to model that gap, or simply enter your dealer's quoted price and work from there.
Conversions used here
- troy ounce 31.1034768 g · tola / vori 11.6638038 g · Thai baht 15.244 g (bullion) or 15.16 g (jewellery)
- Hong Kong bullion tael 37.429 g · Taiwan tael 37.5 g · Chinese 市兩 50 g · lượng 37.5 g · chỉ 3.75 g · don 3.75 g
- Buying = spot × purity × weight × (1 + premium) × (1 + making charge) × (1 + tax)
- Selling = spot × purity × weight × (1 + premium) × (1 − buyback deduction)
Information only, not investment advice. For everyday unit conversion see the other calculators.
Frequently asked questions
How many grams is one tola of gold?
One tola is 11.6638 grams, defined as three eighths of a troy ounce. It is the standard gold unit across India, Pakistan and Nepal, and in Bangladesh the same weight is called a vori or bhori. Because it is tied to the troy ounce rather than a round metric number, converting tola prices by hand is error-prone — 10 tola is 116.638 grams, not 116.
Is a tael the same everywhere?
No, and this trips people up. Hong Kong bullion trades in a tael of 37.429 grams, which is 1.20337 troy ounces — close to 1.2 but not exactly, and the difference matters on a large order. It is the standard used by all licensed members of the Chinese Gold and Silver Exchange Society. Jewellery and general trade in the region often use a heavier tael of 37.7994 grams, Taiwan uses 37.5 grams, and the mainland Chinese市兩 is 50 grams. Always check which tael a quote refers to.
Why does a Thai baht of gold have two weights?
In Thailand, one baht of gold bullion is 15.244 grams, but one baht of ornamental jewellery is 15.16 grams. Both are traded at 96.5% fineness, roughly 23.16 karat, which is the Thai market standard. The difference is small per piece but adds up on larger purchases, so this calculator lets you pick the right one.
Do I pay VAT on gold?
It depends entirely on where you buy and what you buy. In the UK and across the EU, investment gold of fineness 995 or higher is exempt from VAT. In the UAE, investment-grade gold of 99% purity is zero-rated while jewellery carries the standard 5% VAT. India charges 3% GST on gold plus 5% on making charges. The United States has no federal VAT and most states exempt bullion, though a handful still charge sales tax. This calculator leaves the rate as an input so you can enter what applies to you.
Why is the local gold price higher than this calculator shows?
This tool converts the international spot price at live exchange rates, which is a wholesale reference price rather than an official benchmark. Retail prices in your market add import duties, local taxes, refining and dealer margins, and sometimes a supply premium. In markets like India that gap is meaningful. Use the local premium field to add it, or enter your dealer's quoted price directly.
Where does the gold price on this page come from?
It is a market spot reference price, fetched once a day when the site is rebuilt and baked into the HTML so the figure is present even before scripts run. Opening the page does not fetch a new quote — check the timestamp shown next to the price. Spot is what dealers quote intraday, and it moves continuously while markets are open. It is not an official fix or benchmark, and your local dealer will quote something different again once their own margin, fabrication cost and taxes are added. Treat the figure here as a reference point for the maths, not as a price you can transact at.