1. What is the Gold Price Calculator?

The Gold Price Calculator estimates the value of gold based on weight, purity, current spot price, and applicable VAT. It provides an accurate assessment of gold's monetary worth in the UK market.

2. How Does the Calculator Work?

The calculator uses the gold price formula:

Where:

• \( Weight \) — Weight of gold in grams
• \( Purity \) — Purity of gold in karats (0-24)
• \( Spot Price \) — Current market price per gram in GBP
• \( VAT \) — Value Added Tax percentage

Explanation: The equation calculates the pure gold content based on purity, multiplies by the current market price, and adds applicable VAT to determine the total value.

3. Importance of Gold Price Calculation

Details: Accurate gold price calculation is crucial for buying and selling gold, insurance valuation, investment decisions, and understanding the true market value of gold items.

4. Using the Calculator

Tips: Enter weight in grams, purity in karats (24k = pure gold), current spot price in GBP per gram, and VAT percentage. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between karat and carat?
A: Karat measures gold purity (24k = 100% pure), while carat measures gemstone weight (1 carat = 200mg).

Q2: How often does the spot price change?
A: Gold spot prices fluctuate constantly during market hours based on global supply and demand.

Q3: What VAT rate applies to gold in the UK?
A: Most investment gold is VAT-free, but gold jewelry typically carries 20% VAT. Check current regulations for specific gold products.

Q4: How accurate is this calculator?
A: The calculator provides theoretical value based on inputs. Actual buy/sell prices may vary due to dealer premiums, market conditions, and other factors.

Q5: Can this calculator be used for scrap gold?
A: Yes, but dealers typically pay less than spot price for scrap gold due to refining costs and profit margins.