This work investigated experimentally the photothermal conversion efficiency (PTE) of gold nanofluids in a cylindrical tube under natural solar irradiation conditions, which was also compared with a developed 3-D numerical model. The PTE of gold nanofluids was found to be much higher than that of pure water, and increased non-linearly with the nanoparticle concentration, reaching 76.0% at a concentration of 5.8 ppm. Significant non-uniform temperature distribution was identified both experimentally and numerically, and a large uncertainty can be produced in the PTE calculation by using only one-point temperature measurement. A mathematical model was also established to calculate the solar absorption efficiency without knowing the temperature field within the nanofluids, which can be used to predict the theoretical PTE for nanofluids based on their optical properties only.