A troy ounce is a special way to measure the weight of precious metals like gold, silver, platinum, and palladium. Unlike the regular ounce used for everyday things, a troy ounce is based on a pound that has 12 ounces, rather than the usual 16 ounces. Therefore, it is the standard unit for pricing gold in major trading hubs worldwide, including the COMEX and markets in the US and Hong Kong.
Troy ounce weight
Significantly, One troy ounce is equal to about 31.1 grams or 0.0311 kilograms. Also, it is commonly used to express the weight of gold coins and bars, with bullion often sold by the troy ounce. Consequently, Equivalent to around 31.1 grams, the troy ounce is essential for determining the value of gold.
Troy ounce vs Standard ounce
Surpassing the standard ounce, which is also known as the avoirdupois ounce, the troy ounce holds greater weight. A troy ounce weighs around 31.1 grams or 480 grains, while a standard ounce weighs 28.35 grams which is equal to 437.5 grains. This means a troy ounce is about 10% heavier than a standard ounce.
Particularly, Troy Ounce mostly used for measuring precious metals like gold, silver, platinum, and palladium, stands apart. Conversely, standard ounces are employed for general measurement of goods like food, liquids, and other commodities.
Troy Ounce Conversion
| Unit | Equivalent Value |
| Standard Ounce | 1.097 |
| Grams | 31.103 |
| Pounds | 0.0685 |
| Kilograms | 0.0311 |
| Grains | 480 |
| Pennyweight (dwt) | 20 |
| Carats | 155.517 |
Ounce by Ounce
The term “ounce by ounce” refers to a detailed comparison or evaluation of items measured in ounces, especially for precious metals like gold, silver, platinum, and palladium, which are typically measured in troy ounces. Therefore, it is important in the precious metals market to ensure accurate pricing, trading, and assessment of the quality and purity of these valuable commodities.
Applications and Uses
Pricing of Precious Metals
Firstly, the precious metals market primarily uses the troy ounce for pricing gold, silver, platinum, and palladium. Moreover, global markets price and trade precious metals based on the troy ounce. Likewise, dealers typically sell bullion coins and bars in troy ounces, and reputable dealers and platforms require listing weights in troy ounces to avoid confusion.
Weighing Precious Metals
Particularly, the typical measure used to weigh precious metals and ensure they meet purity standards is the troy ounce. As a result, it commonly expresses the weight of gold coins and bars. Consequently, the preference for the troy ounce in the precious metals market stems from historical reasons and the traditional use of beam balances for weighing.
Determining Value
The troy ounce is crucial in determining the value of gold items and other precious metals. Similarly, It is the standard unit for pricing gold in various markets globally, including influential trading hubs like the COMEX and in countries like the United States and Hong Kong.
Historical Significance
The medieval French town of Troyes originated it, serving as the basis for the medieval British coinage system introduced by Henry II of England. Additionally, the U.S. Mint adopted the Troy system for coinage regulation in 1828, solidifying its importance in the precious metals industry.
Global Standardization
Significantly, standardization of the troy ounce allows for transparent pricing, efficient trading, and reliable quality assessment of precious metals globally. Notably, this makes it an essential measurement tool in the multi-trillion-dollar precious metals industry worldwide.
History of Troy ounce
The Troy system of weights and measures, believed to have originated in the French city of Troyes, an important medieval business hub, transitioned into widespread usage. In Troyes, merchants measured 480 grains of barley as a troy ounce, with 12 troy ounces equaling a troy pound. Furthermore, Some historians trace the troy ounce’s origins to standardized Roman monetary weights.
In fact, as European trade expanded from the 10th century onward, Troyes became a hub for merchants worldwide, leading to the development of a new standardized monetary weight system. The French-born King Henry II later integrated this troy system into the British coinage, replacing the previous avoirdupois system.
However, By 1527, the troy ounce became the official British standard for precious metals, a standard later adopted by the United States in 1828.
