India has always been the largest consumer of gold and jewellery in the world, with consumption exceeding 563 tonnes. According to a study, Indian women alone hold 11% of the world's gold in 2025. Gold is not just a safe haven investment option but holds religious, cultural, and financial significance in India. If you are buying gold, you may have come across what is known as 1 Pavan gold grams.
The term 'Pavan' is widely used in South India, especially Kerala and Tamil Nadu. It holds cultural and practical importance as gold is commonly bought, sold, and gifted in Pavans. But what exactly is a Pavan? This blog will discuss its meaning and everything you need to know.
What is 1 Pavan of Gold in Grams?
The word 'Pavan' is a widely used unit for measuring gold in the southern regions of India, particularly in Kerala and Tamil Nadu states. The 1 Pavan of gold equals 8 grams of gold and is commonly bought and sold in Pavan during weddings, festivals, and religious ceremonies in these states.
How Many Grams of Gold is 1 Pavan?
The cost of 1 Pavan gold is calculated by multiplying the current gold price per gram by 8. Here is the formula you can use to calculate the value of 1 Pavan of gold:
● 1 Pavan = 8 Grams of Gold
● Cost of 1 Pavan gold = 8 Grams of Gold x Price of Gold per gram
Suppose you want to buy 1 Pavan of gold. The price of gold per gram is currently ₹10,276. To calculate the price of 1 Pavan of gold, you will multiply 8 by ₹10,276.
● 1 Pavan gold = 8 x 10,276 = ₹82,208
● 2 Pavan Gold = 16 x 10,276 = ₹164,416
● 10 Pavan Gold = 80 x 10,276 = ₹822,080
Where Did the Term "Pavan" Come From?
The term "Pavan" itself is a local variation of the word "sovereign." The British gold coin, the "British Sovereign," historically weighed around 7.988 grams, just short of 8 grams. Eventually, in Indian local gold markets, this was rounded to 8 grams for simplicity, and the word "sovereign" was adapted to become "Pavan" (otherwise spelt "pawan").
Today, whenever somebody mentions one Pavan of gold, it's referring to the same weight that once was a British gold coin, only rounded off for easy calculations. It simplifies gold transactions, making it important for both daily life and financial dealings.
Let’s understand more about 1 Pavan of gold with the help of below table:
Quick Reference Table for 1 Pavan Gold Grams
Here is a quick reference table for the cost of Pavan to grams:
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How is 1 Pavan of Gold Priced?
The final cost of 1 Pavan gold is not just the gold price multiplied by 8 grams. Here are all the factors that influence the cost of 1 Pavan gold:
1. Current Gold Rate (per gram)
Gold rates fluctuate daily. As of 16 August 2025, the cost of 1 gram of gold is ₹10,118 for 24K, ₹8,275 for 22K, and ₹7,589 for 18K gold in Kerala. The price changes every day based on the market demand, international gold rates, exchange rates, and other economic considerations.
The current rate of 1 Pavan gold will change accordingly with it. So, let's suppose the price of gold today is ₹10,118 per gram. The current rate of 1 Pavan gold will be:
- 1 Pavan Gold = 8 x ₹10,118
- 1 Pavan Gold = ₹80,994
2. Making Charges
Whenever you want to buy gold jewellery or an ornament, the jewellers will always charge you extra for the work and design done. That cost is referred to as the making charges and can be between 5% and 25% or even more, based on how complex the design is. Assuming the making charge is 10%:
- 10% of ₹80,994 = ₹8,094
So, your total amount now becomes:
- ₹80,994 + ₹8,094 = ₹89,088
3. GST (Goods and Services Tax)
As of 2025, you have to pay 3% GST on the total price of the gold that you want to buy (gold + making charges).
- 3% of ₹89,038 = ₹2,671
So, the final price is:
- ₹₹89,038 + ₹2,671 = ₹91,709
| Final Cost of 1 Pavan Gold (Example) | ||||||||||||
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*Note: This calculation is based on the gold and GST prices in Kerala as of 16 August 2025. Prices and charges differ between jewellers, cities, and states.
Is Pavan Used in International Gold Markets?
No, the international gold market follows the gram, ounce, and kilogram system. Pavan is purely a regional or local unit, used mainly for convenience in retail gold buying. You'll often hear gold prices quoted as:
- USD per ounce
- INR per gram
- INR per 10 grams (common in Indian financial markets)
Do People Still Use "Pavan" Today?
Yes, in 2025, many Indians are using the term "Pavan" instead of "grams" to buy and sell gold, as it is rooted deep in our culture. Here is why Pavan is still used and popular in South India:
- Cultural Tradition: For ages, gold was weighed in Pavans instead of grams. Hence, most Indian families use Pavan today to buy, sell, and gift gold.
- Easy to Remember: Pavan not only simplifies transactions but also avoids confusion with metric or international units.
- Wedding and Gifting Traditions: During festivals or weddings, gold is still bought in Pavans because it stands as a symbol of wealth, status, and blessings.
Tips to Keep in Mind While Buying 1 Pavan of Gold
Here are some tips you can follow when buying 1 Pavan of gold:
1. Always Know the Current Rate of Gold
As the current rate of gold in grams changes, so will the current rate of 1 Pavan gold. The price will reduce if the current rate reduces. The price will increase if the current rate increases. Consider this rate before you decide to make a purchase.
2. Be Aware of the Making Charges
Making charges directly influences the cost of 1 Pavan gold. It not only adds to the cost of gold but also attracts 3% GST on it. This is why you must consider making charges and add them to the final price. Here are the factors you must take into account:
- Percentage of making charges
- Whether it is applied to the gold weight or the whole price
- GST on making charges (3%)
3. Inspect Hallmark Certification
Avoid buying gold based on weight alone. Ensure your gold is BIS hallmark certified, which is the highest standard of purity. It certifies that gold meets specific purity standards. It also helps you confirm that the gold is genuine and fairly priced.
4. Look For Differences Between Stores
Even minor variations in making charges or gold prices can reduce the cost by thousands. This is why you must always visit and compare different jewellers to get the best rates possible.
5. Request an Itemised Bill
Always make sure that the bill you get has these things written:
- Gold rate
- Weight
- Making charges
- GST
- Purity (22K/24K)
- Hallmark details
To Conclude
Gold is at the heart of India's culture, tradition, and financial security. However, the gold prices are dynamic and change every day. Whether you are buying it for the first time or again for a safe investment, you must start by understanding the meaning of 1 Pavan gold grams. It helps you make smarter choices in gold transactions.
And if you want to get funds against your gold, Poonawalla Fincorp helps you meet your financial needs without selling it. With a loan amount of up to ₹50 Lakhs, you can cover all your emergency needs. The interest rate starting at just 11% p.a., on the other hand, makes it affordable. Apply for the Gold Loan now with Poonawalla Fincorp and get instant approval.
Frequently Asked Questions
Why is 1 Pavan equivalent to 8 grams if the initial British sovereign was a bit smaller?
The jewellers rounded off the weight of the sovereign (7.988g) to a convenient 8 grams for easy handling and calculations in day-to-day transactions.
Are the making charges based on per gram or Pavan?
Making charges are charged as a percentage of the overall gold value, not per Pavan or gram.
Is the gold price for one Pavan the same for any jeweller on a given date?
Usually, the price you get for one Pavan will be marginally different based on how they got the gold, their overheads, brand value, and local price variation.
Can I buy exactly one Pavan of gold in the form of a coin or bar?
Yes, most people buy 8-gram 24K gold coins as a gift or as an investment.
Is GST charged on the making charges too, or only gold value?
GST is charged on the total invoice value, which includes both the final price of your gold and the making charges.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
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