How to Calculate the Real Price of Gold Jewellery Yourself

Step 1:Most gold buyers in Pakistan hear exactly one number at the counter — the 'final price'. They have no way to know how much of it is gold, how much is making charge, and how much is the shop's margin. Here is the formula jewellers use themselves. Learn it, and no one can take you for a ride.

Step 1: Convert the tola rate to a per-gram price

Gold rates in Pakistan are quoted per tola, but jewellery is weighed in grams. 1 tola = 11.66 grams. Divide the day's tola rate by 11.66 to get the per-gram rate. For example, using the rate reported on 29 September 2026 (Rs 438,136 per tola for 24K): 438,136 / 11.66 = about Rs 37,576 per gram for pure 24K gold.

Step 2: Adjust for the karat

24K gold is 100% pure, but jewellery is made in lower karats. The gold share is:

• 22K = 91.6% pure gold

21K = 87.5% pure gold

18K = 75% pure gold

Multiply the per-gram rate by the gold share. At the example rate above, one gram of 22K gold is worth 37,576 x 0.916 = about Rs 34,420. That single number is what the metal in your piece is actually worth.

Step 3: Separate the metal from the making charges

The honest formula every reputable jeweller follows: net weight x karat rate + making charges = what you should pay. Ask for the three parts separately — net gold weight (without wastage), the karat rate applied, and the making charge — and get all three written on the receipt. Any shop that gives only a bundled 'final price' is hiding one of them.

Step 4: Compare making charges, not just gold rates

Today's sharp dip of Rs 12,800 per tola sounds dramatic, but it is small next to making charges. On a 2-tola set, a making charge that is just a few percent higher at one shop can wipe out the saving from the rate drop entirely. So the real comparison between shops is never just the rate — it is the making charge per gram or percentage. Ask whether it is a fixed amount or a percentage, and negotiate that number, not the rate (the rate is set by the market).

Step 5: Selling? Ask the buy-back rate first

If you are selling old gold or exchanging it, the shop buys at a lower rate than it sells. Ask for the shop's buying rate per gram up front and get it in writing. The gap between the selling rate and the buying rate is the shop's margin — knowing it keeps the deal honest. Note: Gold rates change daily and sarafa markets are closed on Sundays. The figures above use the rate reported on 29 September 2026 as an example — always confirm the current rate before buying.