How the price of gold jewelry is made up
Shops price jewelry from the gold price of the day for its karat, plus a making charge for the work, plus VAT where it applies. The karat says how much of the piece is pure gold:
| Karat | Pure gold | Common use |
|---|---|---|
| 24K | 99.9% | Bars and coins |
| 22K | 91.6% | Jewelry in South Asia and the UAE |
| 21K | 87.5% | Jewelry in Saudi Arabia and Egypt |
| 18K | 75% | Jewelry with stones |
When you sell, shops usually pay the gold value only, often a little below the day’s price. The making charge and VAT are not paid back.
Frequently asked questions
Why is the shop’s price higher than this price?
This calculator shows the international price. Shops add their margin and the making charge, so their price per gram is usually a little higher. Enter the shop’s price per gram to see their total.
Is there VAT on gold?
On jewelry, yes: 15% in Saudi Arabia, 10% in Bahrain and 5% in the UAE and Oman. Kuwait and Qatar have no VAT. Investment gold bars of high purity are often exempt.
Which karat is best to buy?
24K holds its value best but is soft, so it is used for bars and coins. 21K and 22K are common for jewelry and are easier to resell in the Gulf.
Do I pay zakat on my gold?
If you have gold worth at least 85 grams of 24K for a full Hijri year, zakat is due on it. Use our zakat calculator to work it out.
Last reviewed: October 2026. Prices are indicative and change during the day. They are not an offer to buy or sell.
This page was translated from Arabic. If something is unclear or wrong, please tell us.