Gold purity is measured in karats (K). Pure gold is 24 karat. Each karat represents 1/24 of the total weight being pure gold.
Karat Reference Table
| Karat | Purity % | Fineness (parts per 1000) | Common Use |
|---|---|---|---|
| 24K | 99.9% | 999.9 | Investment bars, coins, electronics |
| 22K | 91.7% | 916.7 | Gold coins, Gold Lira, high-end jewellery |
| 21K | 87.5% | 875.0 | Popular in Middle East jewellery |
| 18K | 75.0% | 750.0 | Fine jewellery worldwide |
| 14K | 58.3% | 583.3 | Common jewellery in Europe and USA |
| 9K | 37.5% | 375.0 | Entry-level jewellery in UK and Australia |
| 8K | 33.3% | 333.3 | Minimum legal gold standard in some countries |
What is the Gold Lira?
The Ottoman Gold Lira (Arabic: ليرة ذهب) is a traditional gold coin that has been used in trade across the Middle East for over a century. In Jordan, it is commonly traded and used as a store of value, particularly for weddings and dowries.
- Weight: 7.216 grams total
- Fineness: 916.7 (22 karat)
- Pure gold content: approximately 6.614 grams
Understanding JOD (Jordanian Dinar)
The Jordanian Dinar (JOD) has been pegged to the US Dollar since 1995 at a fixed rate of 1 JOD = 1.41044 USD (or equivalently, 1 USD = 0.709 JOD). This peg is maintained by the Central Bank of Jordan, making the exchange rate extremely stable.
How Gold Prices are Calculated
The international spot price of gold is quoted in US dollars per troy ounce on commodity exchanges such as COMEX and LBMA. To calculate the price of a specific karat per gram:
- Take the spot price in USD per troy ounce
- Divide by 31.1035 to get USD per gram (24K)
- Multiply by (karat / 24) to get the price for that karat
- Multiply by 0.709 to convert to Jordanian Dinar (JOD)
Example: If spot = $2,000/oz, then 21K gold per gram = (2000 / 31.1035) x (21/24) = $56.58/g = 40.12 JOD/g