Reading Gold Prices: Converting Ounces, Grams and Currency
International gold prices are quoted in US dollars per troy ounce, while domestic prices are quoted in yuan per gram. Converting between them takes two steps: ounces to grams, then dollars to yuan. One troy ounce of gold equals approximately 31.1035 grams. If the international price is 2400 USD/oz and the exchange rate is 7.2 yuan per dollar, the price in yuan per gram is 2400×7.2÷31.1035 ≈ 555 yuan/g. You can verify this conversion with a [currency calculator](https://calc20.top/en/currency) and a [percentage calculator](https://calc20.top/en/percentage), so you are never confused by different quoting conventions. Pay close attention to quoting conventions: the international price is the raw bullion price, and the domestic "gold market price" is close to it. But the "jewelry price" posted by gold shops is usually 80-150 yuan/g higher, and that gap is processing and brand premium. Always ask whether a quoted price is the raw material price or the jewelry price — they can differ by more than a hundred yuan per gram and directly determine whether you overpaid.Jewelry vs Bullion: How Big Is the Premium and Which Is Better
Even when both are gold, investment and consumption behave very differently. Bullion is an investment asset with a low premium — usually just 5-20 yuan/g above the raw price — and it is redeemed at close to the raw price, so the buy-sell spread is small. Jewelry is a consumer product with a high premium: workmanship and brand markup typically put the jewelry price 15%-25% above the raw gold price, and redemption deducts wear and workmanship again, so a round trip can cost you 20%-30%. As an example, with a raw price of 555 yuan/g, 50 grams of bullion costs about 28,000 yuan including a small workmanship fee. Fifty grams of jewelry at a retail price of 680 yuan/g costs 34,000 yuan — about 6,000 yuan more in premium. If you later redeem both at the raw price of 555 yuan/g, the bullion loses almost nothing while the jewelry loses the 6,000 yuan premium. The conclusion is clear: if you are investing, choose bullion or a gold ETF; jewelry is a consumption purchase, not an investment. A common guideline is to keep physical gold at 5%-10% of total assets for hedging and diversification, rather than putting most of your savings into a single asset.Dollar-Cost Averaging: Smoothing Costs and Long-Term Compounding
A gold accumulation plan buys in batches to smooth the average cost. The logic mirrors index-fund dollar-cost averaging: you buy less when gold is expensive and more when it is cheap, so the average cost over time is flattened. Compared with a lump-sum purchase, DCA avoids the risk of going all-in at the peak and suits ordinary investors who cannot time the market. You can simulate the long-term effect with a [compound interest calculator](https://calc20.top/en/compound-interest): investing 2,000 yuan a month with a long-run average annual gain of 5% yields total contributions of 240,000 yuan over 10 years, with estimated assets around 310,000 yuan and a gain of about 70,000 yuan. If gold simply stays flat, the benefit is mainly the forced savings itself. One warning: gold does not compound like a deposit. Gold itself earns no interest or dividends — all returns come from price movement, and its long-run gains are typically below quality equity indexes. So a gold plan is better treated as part of an asset allocation than as the single engine of wealth growth. Check your monthly contribution as a share of income with a [percentage calculator](https://calc20.top/en/percentage) and keep it within 5%-10% so it does not squeeze your cash flow or emergency reserves.FAQ
Q1: How many grams are in a troy ounce of gold?
One troy ounce equals about 31.1035 grams. International prices are quoted in US dollars per ounce and domestic prices in yuan per gram; to convert, divide by 31.1035 to change ounces to grams, then multiply by the exchange rate to change dollars to yuan.
Q2: Can gold jewelry hold or grow in value?
Basically not as an investment. Jewelry carries a 15%-25% workmanship and brand premium, and redemption deducts wear and workmanship again, so a buy-sell round trip usually loses 20%-30%. Jewelry suits consumption or gifting; for preservation and growth choose bullion, gold ETFs or other low-premium, easy-to-liquidate products.
Q3: Is dollar-cost averaging or lump-sum buying better for gold?
There is no absolute answer. A lump sum suits someone who judges gold to be at a relatively low level and has strong risk tolerance. DCA suits investors who cannot time the market and want to smooth their cost by buying in batches. DCA's core advantage is avoiding a heavy position at the peak; its drawback is that capital is tied up longer and the average return may be lower than a well-timed lump sum.
Q4: What share of a portfolio should be gold?
A common reference is 5%-10% of total assets in physical gold, for hedging and risk diversification. Too high a share crowds out income-producing assets such as stocks, funds and property, hurting long-term growth; too low a share provides little hedging. Adjust the ratio to your family's risk preference and existing allocation.