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How to find the current gold price per gram in pounds sterling

If you look up the current gold price you will generally be presented with a single figure, which is in pounds sterling. Most of us may assume that this price equates to the gold price per gram in pounds, but this is not actually the case. In fact, in order to calculate the current gold price per gram in pounds a small amount of arithmetic is required.

Firstly, gold prices are not traditionally given in grams. Instead they are calculated in an old-fashioned unit which is known as the Troy Ounce. This unit originally corresponded to 20 pennyweight, and has been used in the gold trade for over a century. Nowadays most people will need to convert this unit into something more workable, such as the gram. Due to the archaic nature of the Troy Ounce it now equates to 31.1 grams, a slightly awkward number which does not lend itself very well to mental arithmetic.

If you wish to convert a gold price in Troy Ounces to grams, you must divide the price by 31.1. This will give you the gold price per gram in pounds of a single gram of gold. Finally, it is worth bearing in mind that all gold prices are given for Troy Ounces of completely pure gold. Most gold items belonging to the general public are made from gold alloys, which are classified according to the carat system.

The gold price in London is fixed twice daily by the London Bullion Market Association, and is then displayed on their site at lbma.org.uk.

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