Since gold prices are linked to instant changes, the process of calculating its prices is often not easy for everyone, as the different sizes, measurements, and carats of gold pieces, as well as manufacturing and tax fees, also have a fundamental impact on its price.
Gold prices are calculated using the following equation:
- Final gold price = gold price x weight of gold to be purchased in grams + manufacturing fees + goods and services tax.
Among the aspects of the equation mentioned above, gold prices are the most difficult factor to know, since gold prices change instantly according to the change in its global price. In order to make the calculation easier, we have provided Tools that provide live gold price updates such as the widget at the top of the Qimat Zawiya Al Shifa Gold and Jewelry store page. It is very important to check the global gold price on a daily basis, in order to know the most appropriate times to buy or sell, given that gold prices fluctuate between rising and falling. As is well known, the times when gold prices are high are the best times to sell, and the times when the global gold price falls are the best times to buy. In order for the customer to have an easy and clear experience in both cases, he must follow global prices through reliable and well-known sites that use clear tools such as the one mentioned above.
In addition to global prices, there are some factors that must be taken into consideration and are considered essential pillars for influencing the calculation of the price of gold. These factors include the following:
- Purity of gold:
The carat of gold is its purity, and the carat is always the first question that is searched for when wanting to buy or sell gold jewelry. The 24 carat is considered the purest compared to the other carats, and despite that, its use is minimal in the jewelry industry compared to other carats such as 22 carats and below. Which decreases in purity due to the presence of other metals with them, including copper, silver, zinc, and others, whose presence affects the color of the gold, the degree of its luster and the amount of its hardness, thus these additions that affect the purity of gold play a major role in the difference in its prices.
- Gold pricing:
Gold prices are affected by the place and price at which they are purchased. There are two main factors that affect gold prices. The first is that the commodity is exchanged daily, and the other is that local prices of pure gold are published daily in newspapers and on the Internet. The price of gold may be affected in terms of stability due to the variation in prices at which goldsmiths buy jewelry to sell it later.
- Demand and supply:
In the economic world, all commodities are priced according to the laws of demand and supply, including gold. The effect of increased demand on gold prices is direct, as the greater the demand, the higher the price of gold automatically. This phenomenon is clearly noticeable during occasions or peak periods and global seasons. In addition, the holdings of government reserves in the country have a significant impact on the availability of gold. For example, if the Reserve Bank of India agrees to buy more gold, the supply of gold in the country will be reduced. If the demand level remains the same, the price of gold will increase.
- Manufacturing fees:
The manufacturing fees have a clear and significant impact on gold prices, because the conversion costs of gold jewelry represent 6% to 14% of its total price. In this regard, each jeweler sets his own price, because some goldsmiths set a predetermined gram cost or a specific percentage of the total price as the manufacturing cost. Customers can negotiate with goldsmiths on the manufacturing fees, as they are not subject to any specific national standards. The cost of the same gold jewelry may be achieved through negotiations between customers and sellers, which may vary from one customer to another.