How is the gold rate in the Philippines calculated here?
We take the international spot price of gold in US dollars per ounce and convert it at the live US dollar to Philippine peso exchange rate: price per gram = ounce price ÷ 31.1035 × USD/PHP rate × purity of the karat. The value updates every few seconds while the world market is open.
International rate and the local market rate
Filipino jewellery shops and pawnshops quote per gram and add their own margin, so their prices differ from the international value shown here. Pawnshops lend against gold at well below this value.
How gold is bought in the Philippines
"Saudi gold" is the name Filipinos use for 21K jewellery bought in Saudi Arabia and the Gulf. In the Philippines, 18K and 14K are common for local jewellery, and 24K for bars.
Buying gold in the Gulf to take home
Many Filipino workers in Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain and Oman buy gold there to take home. The gold value is the same as the world price, but taxes differ: Saudi Arabia charges 15% VAT on jewellery, Bahrain 10%, the UAE and Oman 5%, and Qatar and Kuwait have no VAT. Making charges are added by every shop. Keep the invoice and check the customs allowance of Philippines before you travel.