How to Value Gold in Your Net Worth (Bars, Coins and Jewellery)
A simple formula for valuing physical gold by weight and karat, why jewellery is worth less than its price tag, and how often to update the figure.
By Islam Kassem, Founder of NetWorthy · · 3 min read
Gold is one of the easiest assets to own and one of the most often left out of a net worth. People know they have "some coins" or "my wedding jewellery" but have no idea what it's worth. Putting a number on it takes two facts: how much pure gold you have, and today's price.
The formula
Value = weight in grams × purity × spot price per gram
Each part needs a bit of care.
1. Weight
Bars and coins have the weight stamped on them. Jewellery doesn't, so use a kitchen scale that measures to 0.1 g, or the weight on your purchase receipt. Remove stones if you can. A diamond or gemstone adds weight but isn't gold.
Gold prices are often quoted per troy ounce. One troy ounce is 31.1035 grams, slightly heavier than an ordinary ounce. To turn a price per ounce into a price per gram, divide by 31.1035.
2. Purity (karat)
Pure gold is 24 karat. Lower karats are mixed with other metals, which makes them harder and cheaper.
| Karat | Gold content | Common for |
|---|---|---|
| 24k | 99.9% | Bars, investment coins |
| 22k | 91.6% | Some coins, jewellery in South Asia |
| 21k | 87.5% | Jewellery in Egypt and the Gulf |
| 18k | 75% | Jewellery in Europe |
| 14k | 58.5% | Jewellery in the US and Germany |
The karat or a fineness number (999, 916, 875, 750, 585) is usually stamped inside rings or on the clasp.
3. Spot price
The spot price is the current market price for pure gold. It changes throughout the trading day. For a net worth figure you don't need it to the minute; the price on the day you update is fine.
Worked example
Suppose the spot price is 100 per gram (an easy number for the example; check the real price before you calculate). You own:
- One 20 g bar of 24k gold: 20 × 0.999 × 100 = 1,998
- A 21k bracelet weighing 15 g: 15 × 0.875 × 100 = 1,312.50
- An 18k ring weighing 4 g: 4 × 0.75 × 100 = 300
Total gold value: about 3,610.
Why jewellery is worth less than you paid
If you bought that bracelet in a shop, you probably paid more than 1,312.50. Jewellery prices include workmanship (the making charge), the shop's margin and sometimes tax. None of that comes back when you sell. A dealer buying gold pays based on weight and purity, often slightly below spot.
So for your net worth, value jewellery by its gold content and ignore the receipt. You could even take a few percent off for the dealer's spread. It feels harsh, but that's roughly what a dealer would pay.
Investment bars and coins sell much closer to spot, which is one reason people who buy gold as savings prefer them.
Silver works the same way
Same formula, different purities: 999 for bars and investment coins, 925 for sterling silver. Silver's price per gram is much lower, so it only makes a real difference in larger amounts.
How often to update
Gold can move a few percent in a week, but for most people it's a long-term holding. Updating the value when you do your monthly net worth check is plenty. A tracker with live prices does it for you: you record the weight and karat once, and the value follows the market.
Tracking gold in NetWorthy
Add each item with its weight and karat. With Lite or Pro, NetWorthy values it at the current spot price, converted into the currency you use for your totals, so your gold sits next to your bank accounts and ETFs in one figure. If you just want a one-off total, the net worth calculator has a line for gold and valuables.
If gold is a big part of your savings, it's also worth checking how much of your total it represents. Is my portfolio diversified? shows how.