Karat = how much is pure gold
| Karat | Pure gold | Typical use |
|---|---|---|
| 24K | 99.9% | Bars and coins; too soft for most jewellery |
| 22K | 91.6% | Jewellery popular with Indian and Pakistani buyers |
| 21K | 87.5% | The most common jewellery in Saudi Arabia and the Gulf |
| 18K | 75% | Harder, often with stones; cheaper per gram |
The gold value of a piece = weight in grams × today's price for its karat. Shops show the day's price per gram for each karat on a board.
The making charge
On top of the gold value, shops add a making charge for the work, usually a fixed amount per gram. Simple chains have a low charge; detailed or branded pieces much more. The making charge is negotiable, so ask for a lower one, especially on heavier pieces.
VAT
- Saudi Arabia: 15% VAT on jewellery. Investment bars and coins of 99% purity or more are generally exempt.
- UAE: 5% VAT on jewellery; tourists can claim a refund at the airport.
- Kuwait and Qatar: no VAT.
Selling gold back
When you sell, shops pay for the gold only, by weight and karat, usually a little below the day's price. The making charge and VAT you paid are not returned. That is why plain, low-making-charge pieces or bars are the better choice if you buy gold as savings.
Check before you pay
- Look for the karat stamp and ask for a receipt showing weight, karat, price per gram and making charge separately.
- Watch the piece being weighed.
- Work out the fair price yourself with our gold price calculator, which uses the live world price for each karat.
Gold kept as savings counts towards zakat. See the zakat calculator.