One gram of gold, five published prices
Laila HaddadPrecious metals editorDubai Jewellery Group publishes a suggested retail price for five karat marks, in dirhams per gram of jewellery. The marks are 24, 22, 21, 18 and 14 karat. Each mark is a different proportion of gold in the alloy, and each proportion is fixed. The published prices therefore sit on a ladder, with the higher marks above the lower ones. But the price per gram of fine gold is a different ladder, and it does not fall with purity.
One tariff, five marks
Each published price, divided by the gold the mark actually contains.
| Karat mark | Shelf price, per gram | Gold in it | Per gram of fine gold | Against 24K |
|---|---|---|---|---|
| 24K · 999 | AED 504.50 | 99.9% | AED 505.01 | +0.00% |
| 22K · 916 | AED 467.00 | 91.7% | AED 509.44 | +0.88% |
| 21K · 875 | AED 448.00 | 87.5% | AED 512.00 | +1.39% |
| 18K · 750 | AED 384.00 | 75.0% | AED 512.00 | +1.39% |
| 14K · 585 | AED 299.50 | 58.5% | AED 511.97 | +1.38% |
What the five marks contain
A karat mark states how many parts of gold are in twenty-four parts of alloy. At 24 karat, the proportion is 999 parts per thousand, which is the practical ceiling for fine gold. At 22 karat it is 916, at 21 karat 875, at 18 karat 750 and at 14 karat 585. The rest is other metal, added for colour and for hardness.
These proportions are fixed by convention and by law. A piece stamped 18 karat must contain 750 parts of gold per thousand, and the hallmark is there to certify that. The proportion is not a grade of quality; it is a recipe. A lower mark is not worse gold, it is less gold per gram of jewellery.
What the published price is a price of
The Dubai Jewellery Group price is a price per gram of jewellery at each mark, not a price per gram of gold. A gram of 18 karat jewellery contains less gold than a gram of 21 karat, so it should cost less. The published price reflects that, and the ladder falls from 24 karat down to 14 karat.
But the published price also includes a retail margin, and that margin is not the same for every mark. The lower marks carry a higher margin per gram of gold, and that is what the division by purity exposes. The published price is a shop price, not a metal price.
The division that shows the tariff
Divide the published price per gram of jewellery by the proportion of gold the mark carries, and you get a price per gram of fine gold. That is the only rate that can be compared mark against mark. When you do that division on the Dubai prices, three of the marks land on one and the same rate per gram of fine gold: 21, 18 and 14 karat.
That sameness is not a coincidence. It means those three marks are not quoted as separate markets. They are derived from a single tariff for fine gold, with a different amount of metal in each gram of jewellery. The lower marks are not cheaper gold; they are the same gold in a smaller amount.
Where 22 and 24 karat sit
The division by purity puts 22 karat a little below the rate shared by 21, 18 and 14. That means the published price for 22 karat carries a slightly smaller margin per gram of fine gold than the three marks below it. It is still derived from the same tariff, but the trade body suggests a slightly lower mark-up on that mark.
24 karat sits below that again. The published price for 24 karat, divided by its purity, gives the lowest rate per gram of fine gold of the five. That is the arithmetic of the ladder: the highest mark carries the lowest tariff per gram of metal. The buyer who wants the most gold for the least margin should look at the top of the ladder.
What the table shows and what it does not
A live table sits above this text. The first column names the karat mark. The second column shows the suggested retail price per gram of jewellery at that mark, in dirhams. The third column shows the price per gram of fine gold, arrived at by dividing the second column by the proportion of gold the mark carries.
The table shows the arithmetic, not the advice. It does not show making charges, which are added at the counter and are published nowhere. It does not show what a buy-back counter pays. It shows the published suggestion and the division that exposes its structure.
The idea of a better rate on a lower mark
A buyer who chooses a lower mark because the price per gram is lower is paying more for every gram of gold actually received. That is the one thing a buyer choosing a mark for value, rather than for looks, needs to know. The lower mark is not a cheaper market; it is a dearer tariff on the same fine gold.
The better rate, if the only measure is gold received for dirham paid, is at the top of the ladder. But value is not only gold content. A lower mark may be harder, a different colour, or better suited to daily wear. The arithmetic speaks to one thing only: how much of the money goes on gold and how much on the rest.
The marks in one word
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Questions about karat marks
Why do three marks land on one rate per gram of fine gold?
Because the published prices for those three marks are derived from a single tariff for fine gold. The trade body sets a rate per gram of fine gold, then multiplies it by the proportion of gold in each mark to get the suggested retail price. That multiplication gives three different shop prices, but the underlying rate is one.
Is 22 karat a better deal than 21 karat?
In terms of gold received per dirham, yes. The division by purity puts 22 karat a little below the rate shared by 21, 18 and 14, meaning the suggested margin on 22 karat is slightly smaller. But the difference is small, and making charges can erase it.
Does the table include making charges?
No. Making charges are added at the counter and are not part of the suggested retail price. They vary by shop and by piece, and they are published nowhere. The table shows the suggested price per gram of jewellery and the price per gram of fine gold, nothing else.
Why is 24 karat below the others in the third column?
Because the published price for 24 karat, divided by its purity, gives the lowest rate per gram of fine gold. The trade body suggests a smaller margin on the purest mark, perhaps because it is bought as investment more than as jewellery. The arithmetic is clear: the top mark carries the lowest tariff.
Should I always buy the highest karat for value?
If gold content is the only measure, then yes. But a higher karat is softer and more easily scratched. A lower mark may be more durable for a ring worn daily. The arithmetic speaks to gold received per dirham; it does not speak to how the piece will wear.
Know the arithmetic the counter runs
The published price per gram is not the price of a gram of gold. It is the price of a gram of jewellery at that mark. Divide it by the gold the mark carries and the lower marks show themselves as a tariff, not a market.