GlossaryGold & Commodities

What is Gram Gold?

Gram gold is a unit for trading gold based on its weight in grams, with its price derived from the global ounce price and the local currency exchange rate.

While the international gold market primarily trades in troy ounces, many local markets, including Turkey, commonly quote gold prices per gram. The price of one gram of gold is calculated by converting the global ounce price (in USD) into the local currency. Therefore, the local gram gold price is sensitive to two factors: changes in the international spot price of gold and fluctuations in the USD/local currency exchange rate.

Gold is traditionally seen as a 'safe-haven' asset and a store of value, particularly during times of economic uncertainty, high inflation, or currency weakness. Buying gram gold allows investors in local markets to gain exposure to gold's price movements without dealing with physical bars or coins in larger ounce denominations.

ExampleIf the international gold price is $2,000 per ounce and the USD/TRY exchange rate is 32, the approximate price for one gram of gold in Turkish Lira would be calculated from these two values (since there are about 31.1 grams in a troy ounce).

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