A small mistake in calculating the gram price when buying gold can turn into hundreds of riyals paid unnecessarily!

With daily price fluctuations, a smart buyer needs precise knowledge of how to calculate the gold price at purchase, which includes not only the raw gold price but also adding fabrication costs and tax, along with understanding the factors that may raise or lower the price before completing the deal.

Therefore, in this Gold.sa guide, we take you step by step to learn the correct way to calculate the price at purchase, with practical examples and expert tips to avoid common mistakes and ensure profit.

The Easiest Way to Calculate Gold Price at Purchase

To calculate the gold price at purchase, you must know the current gram price in SAR and multiply it by the weight of the piece, then add fabrication costs and VAT (currently 15% in Saudi Arabia) on jewelry only. Note that fabrication costs vary from one trader to another. Here is the formula:

Gold price at purchase = (Gold gram price in SAR × Weight of piece) + Fabrication + VAT (if applicable)

Practical Example:

If you have a 21K gold ring weighing 10 grams, and the current gram price is 200 SAR with a fabrication cost of 50 SAR, then:

Raw gold price = 10 × 200 = 2000 SAR

Fabrication = 10 × 50 = 500 SAR

Total with fabrication = 2000 + 500 = 2500 SAR

Tax = 2500 × 0.15 = 375 SAR

Final price = 2500 + 375 = 2875 SAR

Important note: Always calculate tax and fabrication separately from the raw gold price.

You can also calculate gold price directly via Gold.sa using the gold price calculator, which provides real-time data in SAR or USD. Just enter the weight and karat, and the result appears instantly!

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