The price of gold per gram in the UK moves throughout the day, tracking the global gold spot price quoted in US dollars and converted into pounds.
Dealers work it out by taking the spot price per troy ounce and dividing by 31.1035, the number of grams in a troy ounce. What you actually pay depends on gold purity, the dealer's premium over spot, and whether you are buying coins, bars, or scrap.
Key takeaways
- UK gold price per gram = spot price per troy ounce divided by 31.1035, converted to pounds.
- 24-carat gold is effectively pure (99.9%); 9-carat gold is only 37.5% gold, so price scales with purity.
- Dealers charge a premium over spot, so compare at least three UK dealers before buying.
- Check a live gold price feed from a reputable UK bullion dealer before you buy or sell.
- Scrap gold always sells below spot because the refiner takes a margin.
How the UK Gold Price Per Gram Is Calculated
The per-gram price comes from the London gold spot price, set by trading on global markets and published in US dollars per troy ounce. A UK dealer converts that dollar figure into pounds at the current GBP/USD exchange rate, then divides by 31.1035.
The result is the fine gold price per gram, meaning the price of one gram of pure gold. Any item you buy is then priced from that base figure according to its gold content and the dealer's premium.
What Is a Troy Ounce and Why Does Gold Use It?
A troy ounce weighs 31.1035 grams, slightly more than the standard avoirdupois ounce of 28.35 grams used for everyday items. Gold, silver, and other precious metals have been weighed in troy ounces for centuries, and the convention stuck.
When you see a gold price quoted "per ounce" anywhere in the world, it means per troy ounce. Mixing the two up is a common mistake that makes prices look about 10% better or worse than they really are, so always check which ounce a quote refers to.
Gold Purity: Carats and What They Mean for Price
Gold purity is measured in carats, where 24 carat is pure gold. A 9-carat item contains 37.5% gold, 14-carat contains 58.5%, 18-carat contains 75%, and 22-carat contains 91.7%.
To price an item, multiply the fine gold price per gram by its purity fraction: a gram of 18-carat gold is worth roughly three-quarters of a gram of pure gold. UK hallmarks stamped on jewellery confirm the carat, so you never have to guess.
Why Dealers Charge More Than the Spot Price
The dealer premium covers manufacturing, distribution, and the dealer's own margin, and it varies by product. Small gold bars and coins carry higher percentage premiums than large bars because the fixed costs are spread over less gold.
Well-known bullion coins such as Britannias and Sovereigns usually command a modest premium and are easy to resell. Investment-grade gold (bars and coins of sufficient purity) is VAT-free in the UK, and UK-minted coins like Sovereigns are also exempt from capital gains tax, which is worth knowing before you buy.
Where to Check Today's Gold Price in the UK
Start with a live price page from an established UK bullion dealer, which shows buy and sell prices per gram updated through the day. The LBMA gold price, set twice daily in London, is the industry benchmark many dealers reference.
Avoid relying on a single high-street jeweller's quote when selling scrap gold; online bullion dealers and specialist gold buyers usually publish their rates openly, making comparison straightforward. Prices move with currency markets too, so a weaker pound raises the sterling gold price even when the dollar price is flat.
Buying vs Selling: What to Expect
When buying, expect to pay spot plus premium; when selling, expect spot minus a margin. The gap between the two is the dealer's spread, and it is widest on small or unusual items.
If you are selling jewellery, the buyer pays for gold content only, not for craftsmanship, brand, or gemstones, which are usually removed or ignored. Getting quotes from at least three buyers is the simplest way to make sure you are not leaving money on the table.
FAQ
How do I calculate the price of gold per gram?
Take the spot price per troy ounce in pounds and divide by 31.1035. That gives the price of one gram of pure gold; multiply by the item's purity fraction for its gold value.
What is the difference between 9ct and 18ct gold prices?
18-carat gold contains twice as much gold as 9-carat (75% versus 37.5%), so its gold value per gram is roughly double. Hallmarks confirm which you have.
Is there VAT on gold in the UK?
Investment-grade gold is VAT-free. Jewellery and non-investment gold items are generally subject to VAT, which is one reason their retail prices sit further above the gold value.
Where can I sell gold in the UK?
Specialist online bullion dealers, high-street gold buyers, and some jewellers all buy gold. Compare published per-gram rates from at least three buyers first.
Why is the price different between dealers?
Each dealer sets its own premium over spot based on stock, product type, and overheads. Small bars and coins carry higher percentage premiums than large bars.
What is the gold spot price?
The spot price is the current market price for immediate delivery of one troy ounce of gold, quoted in US dollars and set by global trading. All retail gold prices start from it.
