Why gold rates differ: spot price, local rates and making charges

By the Ezetrad team · Updated 13 November 2026 · 2 min read

You check the gold price online, walk into a jewellery shop and the number is different. Here is where the difference comes from.

1. The spot price is a wholesale price

The spot price is what large traders pay for pure gold delivered now, in US dollars per troy ounce (31.1 grams). It is the starting point for every other price.

2. Your currency

Converting from dollars adds the exchange rate. If your currency weakens against the dollar, local gold gets more expensive even when the dollar price stays the same. Some countries also have an open-market rate that differs from the official one.

3. Import duty and taxes

Many countries charge customs duty on imported gold and sales tax or VAT on jewellery. These are added on top of the converted price.

4. Local association rates

In several countries a jewellers' association announces a daily local rate, for example the Sarafa association in Pakistan or BAJUS in Bangladesh. It reflects local supply and demand and can differ from a simple conversion.

5. Purity

24 karat is pure gold; 22 karat is 91.7% gold, 21 karat 87.5% and 18 karat 75%. Jewellery is rarely 24 karat because pure gold is soft, so a gram of jewellery contains less gold.

6. Making charges and margin

Shops add a making (labour) charge, often a percentage or a fixed amount per gram or tola, plus their margin. When you sell jewellery back, these charges are usually not returned.

See the numbers

Our country pages convert today's spot price into local units and karats, so you can see the starting point before the local extras: Pakistan, India, UAE, Saudi Arabia, UK, Bangladesh.

This guide is educational and is not financial advice.

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