The Core Valuation Formula
Cash Value = Net Gold Weight (grams) × Tested Purity % × Today's Market Rate per
Gram.
Design craftsmanship and ornament age do not change pure gold value. Only the pure metallic
content is converted to spot cash.
1. Weight: Measured in Grams
Gold is weighed in grams on precision digital scales. Always ask to see the scale zeroed out before placing your jewellery. In South India, one sovereign (pavan) equals exactly 8 grams.
2. Purity: Measured in Karats
Purity indicates the proportion of pure gold in your alloy. 24 karat is pure gold (99.9%). 22 karat (hallmarked 916) is 91.6% pure gold. 18 karat (hallmarked 750) is 75.0% pure gold.
| Karat | Hallmark Stamp | Pure Gold Content |
|---|---|---|
| 24K | 999 | 99.9% Pure |
| 22K | 916 | 91.6% Pure |
| 18K | 750 | 75.0% Pure |
| 14K | 585 | 58.5% Pure |
3. Today's Market Buying Rate
The bullion buying rate follows national and international markets and changes daily. A trustworthy buyer displays this rate openly at the counter.
Putting It Together: A Real-World Example
At today's 22K buying rate of ₹13,385 per gram, a 10 gram 22K chain is worth about ₹1,33,850.
If your ornaments contain enamel, embedded stones, beads, or inner wax/lac, that weight is separated out so you are paid for genuine gold only.
Want to check your own jewellery right now? Use our old gold value calculator.