How to Calculate Your Gold's Value and Profit
How do you calculate gram gold? The right way to work out today's value of your gold, your average cost and whether you are in profit or at a loss.
When you put your savings into gold, the process does not end with the purchase. Seeing how the gold you bought gains value over time tells you how close you are to your goals. For anyone who buys gold regularly, calculating gram gold is the basic step that shows clearly where your savings stand today.
Changes in the ounce price and the dollar rate can change the Turkish lira value of your gold during the day. Working out the overall position of gold bought on different dates at different prices can look confusing at first. Once you know the right method, you can do it in a few steps.
How is the gram gold price set?
Before calculating value, you need to know how the gram gold price is formed. The gram price in Turkey depends on two main variables. The first is the dollar price of an ounce of gold on international markets. The second is the dollar exchange rate.
The calculation is: divide the dollar price of 1 ounce by 31.1035 to get the dollar value of 1 gram of pure gold. Multiply this by the dollar rate to get the Turkish lira value of gram gold. So if the ounce rises while the dollar stays flat, or the dollar rises while the ounce stays flat, the gram price goes up. For more detail, see what is a troy ounce of gold.
How to calculate your average cost
A method often used by regular gold buyers is cost averaging. Imagine you buy gold for a fixed amount every month. Because prices keep changing, you buy at a different gram price each month.
At the end, divide the total amount you have spent by the total grams you hold, and you get your average cost. For example, if you add up what you paid over several months for a total of 3 grams and divide by 3, you have your average cost per gram. When the jeweller's current buying price rises above this average, you are in profit if you sell.
Which price should you use for today's value?
The most important point when calculating the current value of your gold is the difference between the buying and selling price. When you buy gold, you pay the jeweller's selling price. When you sell, the jeweller's buying price applies.
So when you calculate what your gold would fetch if you turned it into cash today, use the buying price. We explain the reasons for this difference in why gold buying and selling prices differ. You can see current buying and selling prices live on our market page.
The calculators on our website
To make things easier, our tools page has two calculators. The currency and gold converter shows what any amount is worth at live prices; you can convert between gram gold, Turkish gold coins and different karats.
The historical calculator shows today's value of a purchase made on a given date. It answers the question "if I had bought this much gold a year ago, what would it be worth now?" If you have several purchases, calculate each one separately and combine them with the cost averaging method described above.
Calculating the value of jewellery and gold coins
If your savings are not 24 karat gram gold but quarter coins, Ata Liras or 22 karat bangles, the calculation is slightly different. Turkish gold coins and bangles are 22 karat (916 fineness), so you should not value them directly at the 24 karat gram price.
For example, a 10 gram 22 karat bangle contains about 9.16 grams of pure gold. Gold coins are valued at their own buying prices; the quarter coin has one buying price and the Ata Lira another. You can see their current value with our converter, or we can weigh them and calculate together in our store.
Calculation table
| Calculation | Data to use | What to watch |
|---|---|---|
| Today's value of your gold | The jeweller's buying price | Use the buying price, not the selling price |
| Average cost | Total amount paid ÷ total grams | Recalculate with every new purchase |
| Profit / loss | Today's value − total cost | Positive means profit, negative means loss |
| Coins and bangles | The product's own buying price or the 22 karat price | Do not use the 24 karat price |
For any questions about your calculations, reach us through our contact page.
This article is for general information only and is not investment advice.
Frequently Asked Questions
Is bank gram gold valued at the same price as a jeweller's gram gold?
No, bank prices and jewellers' prices can differ. When you sell physical gold at a jeweller, use the jeweller's current buying price.
Can I calculate gold with an ordinary calculator?
Yes. Multiply the grams by the current buying price for an approximate result. Prices change during the day, so make sure you use the current price. Our online converter uses live prices, which makes this easier.
Does the gram gold price change a lot during the day?
Yes. The gold price changes continuously during the day with developments on international markets and movements in the dollar rate. That is why you should always use the current price in your calculations.
At Erya Gold Kuyumculuk you can follow live buying and selling prices, and reach our store in Ümraniye with any question.
