What Is Mazaneh? Uses and Calculation in the Gold Market

When buying a ring or assessing the value of gold we own, people usually look at the price per gram. But in market news and conversations among goldsmiths, another figure comes up: 'gold mazaneh.' This figure is higher than the per-gram price, and at first glance it may not be clear what quantity of gold it refers to or how it relates to […]

To buy a ring or check the value of the gold we have, we usually go for the price per gram. But in the news of the market and the conversation of gold sellers, there is another number: "Gold price". This number is higher than the rate of one gram, and at first glance it may not be clear how much gold it refers to or how it relates to our purchase amount.

The difference between these two rates is due to the method of measurement and purity of gold. By knowing these two issues, you can convert the quote to the rate per gram and better understand how the seller calculates the invoice amount. In this article, we will start with the meaning of quotation and explain its use in buying jewelry and molten gold with some simple examples.

The price of gold in the Iranian market is the rate of one shekel of 705 carat gold. The weight of this shekel is considered to be about 4.6083 grams in common calculations. This carat base is also called "17 carat" in market terms.

Therefore, when someone announces a quote, they are not talking about the value of a gram of gold or a specific piece. He tells the rate of a certain amount of gold with a certain contractual purity; A basis that can be used to calculate the value of gold with other weights and carats.

For example, if the quotation is 116 million Tomans, this amount belongs to one shekel of gold based on the quotation. It still cannot be directly multiplied by the weight of a ring; First, the rate should be obtained according to the carat and weight unit of the ring.

To clarify the definition of quotation, we must know its two components separately. The weight is related to the weight and the carat shows the amount of pure gold in the piece.

Shekel; The unit of weight of gold is the shekel, like the gram, the unit of measurement of weight. The type used in the gold market is called Mishqal Sirfi and it is approximately equal to 4.6083 grams. Sometimes this number is written as 4.608 grams.

So, the shekel is a unit of weight, and the price of gold is based on that weight and a specific carat. The fact that these two titles are used interchangeably in some panels should not make us consider weight and price to be the same concept.

sweetheart; The share of pure gold in the gold piece in jewelry is usually combined with other metals. The grade shows what proportion of the weight of this composition is pure gold. In the scale of 24, 18 carat gold means that 18 parts of the 24 parts of the alloy are gold; That is 75 percent. The same purity is expressed by the number 750 on the thousand scale.

Similarly, 705 carat means 70.5% of the weight of the alloy is pure gold. There is also a subtle point: the number 705 is not exactly the mathematical equivalent of 17 out of 24. "17 carats" is the common name of this base in the market, and the same number 705 should be used in price calculations.

The basis of comparing the weight of the gold price or the purity of the gold quote is about 4.6083 grams, 705 grams, the price per gram of 18 carat gold is 750 grams. This table shows why changing the weight unit alone is not enough to convert the quotation into the price per gram.

Why is the gold price still used despite the warm price?

The price of each gram of 18 carat gold is the common basis for buying jewelry. But the quotation remains from the old custom of gold transactions. According to a research published in the London Bullion Market Association, the base of the shekel with a purity of 705 goes back to the period before the revolution and the popularity of 17 carat gold, and it has been preserved in professional transactions.

Quotation is a common basis for price declaration and comparison for gold wholesalers and traders. Its durability can be seen as the result of the continuation of this custom; Otherwise, from the point of view of calculation, the price of each gram of gold with a certain grade has the same function. Therefore, if the buyer of jewelry knows the price of 18 karat grams, he does not need to recalculate the price.

The use of different bases is not unique to Iran. For example, the London gold reference price is expressed in dollars per troy ounce. So, according to the Iranian definition, the price tag is not a global standard; Its conversion is used when we want to compare the quoted price with the gram rate.

What is the use of quotation in the Iranian market?

The main use of the quotation is to announce the price and determine the transaction amount in the major market of gold and melted gold. Bankers, goldsmiths and liquidated traders use quotations to determine at what rate they are being bought and sold. This rate has a direct application in several situations: Obtaining a rate and agreeing on a transaction: A goldsmith who buys melted gold for his workshop receives a sales quote from the seller. The seller also announces his purchase price when buying gold. The parties first agree on this rate and then get the transaction amount based on the weight and grade of gold.

Calculating the value of a melted piece: Melted pieces do not have the same weight and their carat may be different. The seller calculates the gold value of that piece by using the agreed quotation, the weight of the piece and the carat recorded as a result of re-taking. Therefore, the quote is directly involved in the calculation of the diluted purchase or sale amount.

Obtaining the rate per gram of gold: The quotation can be converted to the price of 18 carat gold. This conversion is the basis for calculating the value of the gold in the jewelry for the goldsmith. The buyer can also check with the same method whether the price of each gram in the invoice is compatible with the quotation at the same time or not.

For example, when buying a bangle, first its gold value is calculated according to the rate of each gram and weight; Then the wages, seller's profit and related taxes are added to the invoice. The role of the quotation in this purchase is to determine the base rate of gold; Construction cost and other invoice components are calculated separately.

How to convert the quotation to the price per gram of 18 karat gold?

This conversion has two steps: first, we convert the rate of one shekel to the rate of one gram of the same grade; Then we consider the difference between 705 and 750 purity. The relationship is as follows: the rate of each gram of 18 carats is 4.6083×750705\text{the rate of each gram of 18 carats} \frac{\text{the price}}{4.6083} \times \frac{750}{705} by combining constant numbers, a shorter formula is obtained: the rate of each gram of 18 carats≈4.3318\text{the price of each gram 18 carats} \approx \frac{\text{quote}}{4.3318} The number 4.3318 is not the weight of one shekel. This coefficient contains both the conversion of shekels to grams and the difference in value: if the price is in tomans, the result is also tomans. If the initial number is Rial, the calculation result will also be Rial.

For this example, we use the quotation of about 116 million and 100 thousand tomans based on the market rate on 14 Mehr 1405. by placing it in the formula: rate per gram of 18 carats 116,100,0004.3318≈26,800,000 tomans Each gram of 18-carat gold, after rounding the result, is about 26,800,000 Tomans.

Converting the rate of each gram to the quote To calculate the reverse, it is enough to multiply the price of each gram of 18 carat gold by the same factor: quote≈rate of each gram of 18 carat x 4.3318\text{quote} \approx \text{price of each gram of 18 carat} \times 4.3318, for example, the price of a gram of 26 million and 800 thousand tomans, gives a quote of about 116 million and 100 thousand tomans. This relationship is useful for controlling numbers; Provided that both rates are related to the same trading time and conditions. The slight difference resulting from rounding the numbers is normal.

The quotation number is formed by trading and announcing the rate in the domestic market. However, two important factors affect it: the global value of gold and the conversion rate of dollars to Tomans. Domestic supply and demand conditions can also cause the market rate to deviate from the theoretical calculation.

Global Gold Value In the international market, gold is usually priced in dollars per troy ounce. Each troy ounce is approximately 31.1035 grams. This unit is different from the usual ounce of some goods.

The increase in the global price of an ounce of gold, if other factors remain constant, will also increase the Toman value of gold. Factors such as interest rates, investor demand and central bank purchases can affect the global market; But none alone determine the permanent direction of the market.

The dollar rate in the Iranian market is important for converting the dollar value of gold into Tomans. For this reason, even if the world market does not change much, the increase in the price of the dollar can raise the domestic price. The reverse of this situation is also possible.

In estimating the market price, they usually check the free dollar rate. Using a different official or commercial rate may give a result that is far from the actual gold market transactions.

Estimating the price of ounces and dollars using the weight of the shekel and the base carat, its theoretical value can be calculated. In the following formula, "ounce" is the dollar rate per ounce of pure gold and "dollar" is the toman rate per dollar: theoretical quote≈ounce price × free dollar rate31.1035×4.6083×0.705 \text{theoretical quote} \approx \frac{\text{ounce price}\times\text{free dollar rate}}{31.1035} \times 4.6083 \times 0.705 The logic of the calculation is simple: first, we get the value of one gram of pure gold in Tomans. Then we multiply it by the weight of the shekel and the share of 705 carat pure gold.

This formula gives an estimate of the value of gold based on the quotation; Not necessarily the rate at which the seller will trade. Internal supply and demand, buying and selling distance and the difference in the time of recording the rates have an effect on the comparison. Therefore, any small difference should not be immediately considered as a sign of overselling or a buying opportunity.

Common mistakes in using the gold quote, most of the calculation errors can be solved with a few simple checks: dividing the quote by 4.6083 only: the result is the rate of one gram with 705 karat; To reach the rate of 18 carats, the difference in purity must also be applied.

Direct multiplication of quotation in gram weight: the units of both sides are not compatible. First, convert the quote to the rate per gram.

For online purchases, read, in addition, the weight and value of the registered property, fees, and terms of delivery or resale. Announcing a clear quotation alone does not indicate the quality of all terms of the transaction.

Frequently asked questions What does the gold price mean? The quotation is the price of one shekel of gold exchange with a base rate of 705 in the Iranian market. They use this rate to calculate the value of gold with other weights and carats.

How many grams is each quote? The price itself is not a unit of weight. The weight that expresses its rate is one shekel or about 4.6083 grams; with a contract rate of 705.

What should we do to convert the quotation to grams with a calculator?

To arrive at the price per gram of 18 karat gold, they divide the price by 4.3318. This coefficient takes into account both weight and grade difference.

Why is the price announced based on 17 carats? This basis is the common contract of the market to announce the rate. The title 17 carat in this application refers to carat 705 and does not mean the carat of all traded gold.

Is the price the same as the price of melted gold? In liquidated transactions, the quotation is used as a reference rate, but the value of a specific piece depends on its weight, actual grade, and transaction conditions.