Gold Price Calculator - UAE
Calculate gold jewelry value in AED based on weight, karat, and making charges. Get accurate Dubai gold pricing with VAT included.
Gold Price Calculator - UAE
Calculator
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Formula: Total = (Weight x Purity x Price24K) x (1 + Making%) x (1 + VAT%)
Worked example — Total Price: AED 6,333.34
Formula
Total = (Weight x Purity x Price24K) x (1 + Making%) x (1 + VAT%)
Where Weight is jewelry weight in grams, Purity is karat/24, Price24K is 24K gold price per gram in AED, Making% is making charges percentage, and VAT% is 5% UAE value-added tax.
Worked Examples
Example 1: 22K Gold Necklace Purchase
Problem:Calculate the total cost of a 22K gold necklace weighing 25 grams with 12% making charges. Gold price is AED 235/gram for 24K. VAT is 5%.
Solution:Purity of 22K = 22/24 = 91.67% Pure gold weight = 25 x 0.9167 = 22.917g Gold value = 22.917 x 235 = AED 5,385.49 Making charges = 5,385.49 x 12% = AED 646.26 Subtotal = AED 6,031.75 VAT (5%) = AED 301.59 Total = AED 6,333.34
Result:Total Price: AED 6,333.34
Example 2: 18K Gold Ring Valuation
Problem:A customer wants to know the gold value of an 18K ring weighing 8 grams. Gold price is AED 235/gram (24K). Making charges are 15% and VAT is 5%.
Solution:Purity of 18K = 18/24 = 75% Pure gold weight = 8 x 0.75 = 6.0g Gold value = 6.0 x 235 = AED 1,410.00 Making charges = 1,410 x 15% = AED 211.50 Subtotal = AED 1,621.50 VAT (5%) = AED 81.08 Total = AED 1,702.58
Result:Total Price: AED 1,702.58
Frequently Asked Questions
How is gold price calculated in the UAE?
Gold price in the UAE is determined by the international spot price of gold, which fluctuates constantly based on global market supply and demand. The Dubai Gold and Commodities Exchange (DGCX) closely tracks the London Bullion Market Association (LBMA) benchmark. When you buy jewelry in the UAE, the final price includes the gold value based on weight and karat purity, plus making charges that cover the craftsmanship and design work, and the standard 5% VAT introduced in 2018. Dubai is renowned worldwide for offering competitive gold prices with lower premiums than most international markets.
What is the difference between 18K, 21K, 22K, and 24K gold?
The karat system measures gold purity out of 24 parts. 24K gold is 99.9% pure gold but is very soft and rarely used for jewelry. 22K gold contains 91.67% pure gold mixed with other metals for durability, making it the most popular choice for jewelry in the UAE and across the Middle East. 21K gold has 87.5% purity and is common in Gulf countries for traditional designs. 18K gold contains 75% pure gold and is popular for western-style jewelry with diamonds and gemstones, as the alloy provides greater hardness and color variety including white and rose gold options.
What are making charges and how do they work in Dubai?
Making charges in Dubai cover the labor, craftsmanship, design complexity, and brand premium involved in creating gold jewelry. These charges typically range from 7% to 35% of the gold value depending on the intricacy of the design. Machine-made simple chains and bangles have lower making charges around 7-12%, while hand-crafted intricate designs, antique pieces, and branded jewelry can have making charges of 20-35% or more. In Dubai Gold Souk, making charges are often negotiable, especially for bulk purchases. Always ask for a breakdown showing the gold weight, gold rate, and making charges separately before purchasing.
Is it cheaper to buy gold in Dubai compared to other countries?
Dubai is widely considered one of the most affordable places to buy gold globally due to several factors. The UAE government does not impose import duties on gold, and the 5% VAT is relatively low compared to taxes in other countries where gold jewelry may attract 10-20% or higher taxes. The intense competition among hundreds of gold shops in Dubai Gold Souk and other markets keeps making charges competitive. Additionally, Dubai serves as a major gold trading hub with direct access to wholesale supply chains, reducing intermediary costs. However, travelers should verify customs regulations in their home country regarding gold imports.
How can I verify the purity of gold when buying in the UAE?
The UAE has strict hallmarking regulations enforced by the Dubai Central Laboratories Department and the Emirates Authority for Standardization and Metrology (ESMA). Every piece of gold jewelry sold in the UAE must carry a hallmark stamp indicating its karat purity, such as 750 for 18K, 875 for 21K, or 916 for 22K. Reputable shops provide a detailed invoice listing the weight, karat, making charges, and gold rate. You can also request an independent assay test at certified laboratories. Always buy from licensed shops, especially those in established markets like Dubai Gold Souk, and insist on proper documentation.
How do you convert an international spot price per troy ounce into AED per gram?
Global bullion is quoted in US dollars per troy ounce, and one troy ounce is 31.1035 grams. Divide the dollar quote by 31.1035 to get dollars per gram, then multiply by the AED/USD rate, which the UAE dirham holds at a fixed peg to the dollar. At a spot of USD 2,000 per ounce: 2,000 / 31.1035 = USD 64.30 per gram, and 64.30 × 3.6725 = about AED 236.15 per gram of 24K. That figure is the 24K input Gold Price Calculator - UAE expects.
How is the per-gram rate for 22K or 18K derived from the 24K rate?
Multiply the 24K rate by the karat fraction, since purity scales linearly: rate for k karat = 24K rate × k / 24. At AED 235 per gram for 24K, 22K works out at 235 × 22/24 = AED 215.42 per gram and 18K at 235 × 0.75 = AED 176.25 per gram. Shops in the Gold Souk display these karat-specific rates on a board that updates through the day, and multiplying by the piece's gram weight gives the metal value before making charges.
Why is the buy-back value of jewelry much lower than what you paid?
A buy-back pays for the metal content only. The making charges that covered craftsmanship are labour, not gold, so they are not recoverable, and the VAT you paid at purchase is not returned by the shop either. Dealers may also deduct a small refining allowance, or re-weigh and re-assay the piece if the hallmark is worn. The practical consequence is that heavily worked, low-weight designs carry the largest gap between purchase price and resale, while plain high-karat bangles carry the smallest.
Should you accept making charges quoted per gram or as a percentage?
A percentage charge is calculated on the gold value, so it rises and falls with the daily rate; a fixed AED-per-gram charge does not move with the market. To compare, convert the per-gram quote into an equivalent percentage by dividing it by the karat rate per gram: AED 25 per gram against a 22K rate of AED 215.42 is 11.6%. When gold rates are high, a fixed per-gram charge is usually the better deal; when rates are low, the percentage quote wins.
Does VAT apply differently to investment bullion than to gold jewelry?
Yes. UAE VAT rules zero-rate investment-grade precious metals — gold, silver and platinum of at least 99% purity in a form tradeable on global bullion markets — while ordinary jewelry is a standard-rated retail supply. That is why a 999 bar and a 22K necklace of the same weight can carry different tax outcomes. Because Gold Price Calculator - UAE applies VAT to gold value plus making charges, set the VAT field to zero when you are pricing qualifying bullion rather than jewelry.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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