What Is Gram Gold? How the Price Is Built
In short
Gram gold is gold priced per gram in Turkish lira; its price follows from the international ounce price of gold, the conversion from ounces to grams and the dollar-lira rate.
In Turkey gold is commonly quoted per gram in lira, whereas internationally it is priced per troy ounce in US dollars. Converting an ounce price into a gram price divides it by the number of grams in a troy ounce, and converting dollars into lira multiplies it by USD/TRY. Gram gold therefore moves with both the dollar price of gold and the dollar-lira rate, and it can rise in lira even when the dollar price of gold is unchanged.
The result is the value of the pure gold only. A price quoted at a jeweller or at the Grand Bazaar includes the dealer's buying and selling spread and, for jewellery and coins, workmanship and a premium, so it differs from this calculated value. Fineness matters: pure gold is 24 carat, jewellery gold is often 22 carat, which is 916 parts per thousand, and a gram of 22 carat gold contains less pure gold than a gram of pure gold.
A rise in gram gold in lira is not by itself a rise in the value of gold in dollars; a depreciation of the lira lifts the lira price of gold when all else is equal. Comparing gram gold with another lira price over time therefore mixes the movements of two things, gold and the lira.
Formula
Gram gold (TRY) = ounce price (USD) / 31.1034768 * USD/TRYThe formula is shown as code; N stands for the number of bars or periods.
Figures used in this guide
- 22
- carat count of the jewellery gold used in coins and bangles
- 24
- carat count of pure gold
- 916
- parts of fine gold per thousand in 22 carat gold, as commonly written
- 31.1034768
- grams in one troy ounce
Each number in the text is a definition, a convention or a stated value of the source, not a market observation.
How Lzzo.com shows it
Lzzo.com calculates gram gold from the ounce price of gold and USD/TRY with the formula above and labels it as a model. The page states that the value is the gold content only and adds no workmanship, premium or dealer spread. The ounce price comes from a market reference quote that the product page names, and the result is a calculated value and not a dealer price.
Related guides
Sources
- Borsa Istanbul, Precious Metals Market
- National Institute of Standards and Technology, Conversion Factors for Precious Metal Sales
- LBMA, The OTC Guide: The Price
Primary and official sources, named as plain text.