- Gold weight is calculated in troy measurements. Although it may seem logical to credit ancient Greece with this system, "Encyclopedia Britannica" states this was the "traditional system of weight in the British Isles based on the grain...[the] name supposedly derives from the city of Troyes in France, site of one of the major medieval fairs."
- One gram of gold equals 0.0321507466 troy oz., or 1 troy oz. equals 31.1 g. These units are originally derived from the troy pound, which is equivalent to 12 troy oz.
- To calculate the base value of gold per gram, divide the price of raw gold per ounce by 31.1, and divide that value by 24, then multiply by the gold karat weight. So it's (price of raw gold per ounce) / 31.1 / 24 x karats = base value of gold per gram.
- To see the formula in action, substitute the value on the New York Stock Exchange as of 11:15 a.m. Eastern on April 21, 2009.
Raw gold = $886.15
Number of gold grams in 1 troy oz. = 31.1
Highest karat weight = 24
Karat value equated for = 24
886.15 / 31.1 / 24 x 24 = $28.49 - Gold prices are measured against currency and are calculated daily on major global stock exchanges, allowing gold values to fluctuate. However, because of the unreliable nature of this precious metal relative to the currency against which it is measured, gold values have risen steadily during the past decade, increasing by 150 percent since 2000.
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