Valuing gold holdings
A net worth statement is only as honest as its valuations, and gold is one of the places households most often get it wrong — usually by carrying the purchase price forward for years. Weight in grams × the rate for that purity. 22K is 91.6% of the 24K rate, 18K is 75%, so a 10-gram 22K chain is worth 9.16 grams of pure gold — not 10.
- Liquidity grade
- High
- Time to sell
- Same day at a jeweller
- Revalue every
- Month
how fast it becomes cash
realistically
or when something material changes
The number to write down
Weight in grams × the rate for that purity. 22K is 91.6% of the 24K rate, 18K is 75%, so a 10-gram 22K chain is worth 9.16 grams of pure gold — not 10.
What people get wrong
Making charges and GST are paid on the way in and not recovered on the way out, so jewellery is worth its melt value, not its bill value. Price moves with international spot and the rupee, and physical gold carries storage and theft risk.
Keep the history, not just the latest figure
A single current value tells you where you stand. A series of valuations tells you whether the asset is doing anything for you. Record the value each time you check it, with the date, and the trend answers questions a snapshot cannot — like whether this holding has actually beaten inflation since you bought it.
Where FamTally comes in
FamTally stores gold holdings with a purchase value, a valuation history and a liquidity grade, so your net worth reflects today rather than the day you bought. Gold is valued from the live spot rate converted to rupees, adjusted for the purity you actually hold — 24K, 22K, 20K, 18K or 14K. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
How do I value gold?
Weight in grams × the rate for that purity. 22K is 91.6% of the 24K rate, 18K is 75%, so a 10-gram 22K chain is worth 9.16 grams of pure gold — not 10.
How often should I update the value?
Monthly is plenty, and it takes seconds once the holding is recorded.
Should I use the purchase price instead?
No. The purchase price answers a question about the past. A net worth statement is about what you could realise today.