How much is 14 milligrams of 24 karat gold worth?
The Correct Answer and Explanation is :
To determine the value of 14 milligrams of 24 karat gold, we first need to establish the current market price of gold per gram. As of late September 2024, the price of gold is approximately $58 per gram.
Calculation:
- Convert Milligrams to Grams:
Since there are 1,000 milligrams in a gram, we convert 14 milligrams to grams:
[
14 \text{ mg} = \frac{14}{1000} \text{ g} = 0.014 \text{ g}
] - Calculate the Value:
Next, we multiply the weight in grams by the price per gram:
[
\text{Value} = 0.014 \text{ g} \times 58 \text{ USD/g} = 0.812 \text{ USD}
]
Thus, 14 milligrams of 24 karat gold is worth approximately $0.81.
Explanation:
Gold is measured in karats, with 24 karat representing pure gold. The value of gold fluctuates based on market conditions, geopolitical factors, and economic indicators, which is why it’s essential to check the current price before making any calculations.
The price of gold per gram is derived from the London Gold Fixing price, which is established twice daily. This price reflects the balance between supply and demand and is influenced by various factors including inflation, currency values, and global economic stability.
When calculating the worth of a specific amount of gold, understanding the conversion between milligrams and grams is crucial since the market prices are typically listed in grams.
Additionally, while the monetary value is a straightforward calculation, the intrinsic value of gold also comes from its historical significance and utility in jewelry, electronics, and as a form of currency. Therefore, while 14 milligrams may seem minimal, its worth can extend beyond just the current market price, reflecting the ongoing demand and value of gold in various applications.