What is a Troy Ounce?
A troy ounce is a specialized unit of measure used primarily for weighing precious metals like gold and silver. Originating from the medieval French city of Troyes, one troy ounce is precisely equal to 31.1034768 grams. In contrast to the standard (avoirdupois) ounce, which is used for most other commodities such as sugar and grain and weighs 28.35 grams, the troy ounce is about 10% heavier.
We use ’troy ounce’ exclusively in the precious metals market, adhering to purity standards, often abbreviated as ’t oz’ or ‘oz t.’
Key Takeaways
- Used for Precious Metals: The troy ounce is specifically used for weighing precious metals.
- Weight: 1 troy ounce equals 31.1034768 grams.
- Comparison: A standard ounce equals 28.349 grams, making the troy ounce heavier by nearly 10%.
- Troy Pound: This is measured as 12 troy ounces, which is lighter than the standard pound of 16 ounces.
- Lasting Metric: The troy ounce remains the only modern application of the troy weight system.
Understanding the Troy Ounce
The troy ounce is incredibly significant in the current pricing and trading of precious metals such as gold, platinum, and silver. Most metal prices listed per ounce are referencing the troy ounce.
This system was also used for gemstones before the carat system took its place. Despite the shifting weight measures in various sectors, the troy ounce remains a pivotal measurement in precious metals.
History of the Troy Ounce
The troy ounce likely takes its name from the bustling medieval trade hub, Troyes, France. During this era, merchants would count 480 grains of barley to equal one troy ounce, and 12 ounces would make one troy pound.
Some believe that the roots of this system extend back to Roman times. The Romans had their standardized monetary system weighing exactly 31.1 grams per bronze bar segment, divided into 12 pieces called “uncia,” giving rise to the ounce.
As Europe’s economic dominance surged around the 10th century, Troyes became a melting pot for traders from all lands, necessitating a uniform weight system. This system was later adjusted by King Henry II of England to sync with the French troy scale. By the 15th century, troy weights were in universal use, replacing the earlier Anglo-Norman avoirdupois measurement system. Britain officially recognized the troy ounce by 1527, followed by the United States in 1828.
Troy Ounce vs. Standard Ounce
The standard ounce, used widely in the U.S. to measure various commodities, weighs 28.349 grams or 437.5 grains. In contrast, the troy ounce is 31.1 grams. Although they differ insignificantly for small amounts, the difference becomes significant in larger quantities.
When precious metals prices are stated, they refer exclusively to the troy ounce, explaining why 16 standard ounces compose a pound, but only 12 troy ounces make a troy pound.
Converting Troy Ounces
Here’s a convenient conversion table:
| Troy Ounce Conversion Table | |
|---|---|
| Standard Ounce | 1.097 |
| Grams | 31.103 |
| Pounds | 0.0685 |
| Kilograms | 0.0311 |
| Grains | 480 |
| Pennyweight (dwt.) | 20 |
| Carats | 155.517 |
Investing in Precious Metals
The distinction between the troy ounce and the standard ounce is crucial for precious metals investors. Historically, gold has been a go-to safe-haven asset, but market volatility influenced by its imperishability status keeps investors on their toes. Alongside traditional metals like gold and silver, platinum and palladium have become part of modern metal trading.
Investment Options:
- Commodity ETFs or Mutual Funds: These offer simplistic entry points for beginners into precious metals trading. Shares can be traded while the physical metals remain securely managed by the fund.
- Stock Shares: Engage more directly by buying shares in the metals and mining sectors. This approach comes with the potential of higher rewards and notable associated risks.
- Futures and Options: Notoriously professional, the futures and options market for precious metals demands astute trading skills. Accessibility has improved via the Internet, allowing broader participation.
- Gold Certificates: These historical yet actively traded assets represent an indirect way to own gold, albeit backed by trading entities rather than governments.
Key Comparisons
- Comparative Weight: The troy ounce surpasses the standard ounce by 10%.
- Current Usage: Troy ounces are reserved for measuring the weight of precious metals and specific gemstones, contrasting with the standard ounce utilized broadly for other commodities.
- Troy Pound Insight: Comprised of 12 troy ounces, a troy pound differs significantly as it turns out lighter at 0.823 modern pounds.
Conclusion
Troy ounces are integral to weighing and valuing precious metals, dating back to the historic French town of Troyes. A troy ounce, equivalent to 31.1034768 grams or 1.097 standard ounces, today signifies value in global trade and investment. Evoking centuries of tradition and economic development, the durability of the troy ounce attests to its importance in specialized markets.
Related Terms: precious metals, gold, platinum, palladium, silver, ETF, investment.
References
- The Royal Mint. “What Is a Troy Ounce?”
- Karat Gold. Weights and measures. Maguire Reference, 1982.
- JM Bullion. “What Is a Troy Ounce?”
- International Society of Weighing and Measurement. “Weights and Measures Tables”.
- Metric Conversions. “Troy Pounds to Pounds”.
- Royal Society of Chemistry. “Platinum”.
- Society of Chemistry. “Platinum”.
