Gold has been a store of value for thousands of years and remains one of the most popular precious metal investments. It is traditionally priced in troy ounces, with one troy ounce equal to approximately 31.1035 grams. Gold investment returns are calculated simply as the difference between the current market price and your purchase price, multiplied by the quantity you hold.

The formula is: Profit = (Current Price - Purchase Price) x Weight in Ounces. ROI is expressed as a percentage of your total cost. For example, if you purchased 10 ounces at $1,800/oz ($18,000 total) and the current price is $2,350/oz ($23,500 total), your profit is $5,500 with an ROI of 30.56%. The cost per gram at the purchase price would be approximately $57.88.

Gold is often used as a portfolio hedge against inflation and currency devaluation. Unlike stocks or bonds, gold does not generate income through dividends or interest, so your return depends entirely on price appreciation. Physical gold also involves storage and insurance costs, while gold ETFs and futures provide alternative exposure without the logistics of holding physical metal.