Tola, Gram and Karat: A Practical Gold Guide

Gold is both jewellery and savings in many parts of the world, and every family has opinions about when to buy it. But the numbers confuse many buyers: the tola, the masha, 22 karat, "making" and "wastage". This guide explains each, so you can check a jeweller's bill yourself.

The tola and its relatives

The tola is the traditional unit of gold in South Asia (Pakistan, India, Bangladesh) and parts of the Gulf. Its size:

• 1 tola = 11.664 grams
• 1 tola = 12 masha, so 1 masha = 0.972 grams
• 1 masha = 8 ratti, so 1 ratti = about 0.1215 grams
• 10 grams = 0.857 tola (about 10.29 masha)
• 1 troy ounce = 31.1035 grams = 2.667 tola

The international market prices gold per troy ounce in US dollars. Local rates are often quoted per tola and often per 10 grams as well, so a conversion step sits in between.

What karat means

Karat (K) shows how much of the metal is pure gold, out of 24 parts.

Karat	Purity	Typical use
24K	99.9% (also called 999)	Bars, biscuits, coins; too soft for most jewellery
22K	91.6%	Traditional jewellery, bridal sets
21K	87.5%	Common in jewellery in the Gulf and some local designs
18K	75%	Diamond and modern fashion jewellery

The rest is mixed with copper, silver or other metals for strength. 22K jewellery is therefore worth about 91.6% of the same weight of pure gold, not 100%.

Note that sellers often quote prices for "24 karat" and "22 karat" separately. When someone says "the rate is X per tola", ask which karat that is for.

How the local price is set

Local gold rates follow the international price. In practice, the rate is announced by the sarafa (bullion) market associations in major cities, and updated during the day. The basic idea:

1. Start with the international gold price per ounce in US dollars.
2. Convert it to your local currency using the dollar rate.
3. Convert ounce to tola (÷ 2.667).
4. Add any local premium for import costs, duties and market demand.

So local gold can rise even if the international price is flat, simply because your currency weakened. Likewise, it can fall locally when your currency strengthens. You can track the dollar on the currency converter.

Making charges and wastage

Jewellery costs more than the metal in it. A jeweller's bill typically has:

• Gold value: weight × rate for the karat.
• Making charges: the cost of design and craftsmanship. These may be a flat amount per tola, per gram, or a percentage of the gold value. Simple chains cost less to make than heavy bridal sets or detailed work.
• Wastage (also called "kat" or "wastage"): an allowance for gold lost in the workshop, usually charged as a percentage of weight. Ask whether it is already included in the making charge, so you do not pay for it twice.
• Stones and other materials: stones are weighed and priced separately. Check that the stone weight is not counted as gold weight.

Making charges and wastage are negotiable, especially on heavy pieces. Compare quotes from two or three shops.

Worked example

You buy a 22K necklace weighing 20 grams. Suppose, only for the sake of the example, that 24K gold is 30,000 per gram, and that making charges are 8% of the gold value.

• 22K rate = 30,000 × 0.916 = 27,480 per gram (rough: jewellers may round).
• Gold value = 20 × 27,480 = 549,600.
• Making at 8% = 43,968.
• Total = 593,568.

The 30,000 per gram is an invented number for illustration. Your bill will use the real rate for the day. Try your own numbers on the gold price calculator.

Selling gold: what to expect

• When you sell jewellery back, the shop will usually pay for the gold content only. Making charges you paid at purchase are not returned. The shop may also deduct for purity testing and for resale.
• Gold is generally assessed by a touchstone or machine test. If you want a fair price, get the purity tested at more than one shop.
• Bars, biscuits and coins from reputable refiners lose less on resale than ornaments because there is little or no making charge.
• Keep the original purchase receipt. It shows weight, karat and date.

Practical buying tips

1. Get a printed receipt that lists weight, karat, rate, making, wastage and stone weight separately.
2. Buy from an established shop and ask about a hallmark or a purity certificate.
3. Do not buy by "rate only". Two shops with the same rate can have very different totals once making is added.
4. If you buy gold as an investment, think about a bar or coin instead of ornaments, and where you will store it safely.
5. Compare the rate with other sources before a large purchase, because prices may move during the day.

Gold and Zakat

Gold is zakatable. The nisab for gold is 87.48 grams, which is 7.5 tola. If you own more than that in gold (or enough combined wealth, see our Zakat guide), 2.5% is due each lunar year, and on jewellery too under the Hanafi view. The Zakat calculator can handle this. Weights in other units can be changed with the unit converter.