Breakdown
How it works
Jewellery is priced by pure gold content: 22k is 91.6% gold, 21k 87.5%, 18k 75%. Value = weight × purity × 24k price. Shops add a making charge (per gram or percentage) and tax; on resale you get only the gold value, usually minus 2–5%.
Formula
Worked example
50 g of 22k at 130/g (24k): 50 × 0.9167 × 130 = 5,958. With 8% making and 5% VAT: 6,757. Resale value ≈ 5,958.
Frequently asked questions
Why does Dubai gold cost less than India?
Lower taxes (5% VAT, refundable for tourists, vs 3% GST + import duty in India) and competitive making charges — but compare per-gram 22k rates, not shop totals.
How is the tola used?
1 tola = 11.664 g; Pakistan and India quote gold per tola or per 10 g. Enter tola in the field and leave grams at 0.
Is gold zakatable?
Yes, at 2.5% of value once your total zakatable wealth exceeds the nisab (85 g of gold). Use the zakat calculator; many scholars include jewellery in regular use.