What is a troy ounce? Many precious metals are sold as commodities by the troy ounce, so understanding the troy ounce is the key to determining whether or not you're getting a good deal.
What is a troy ounce?
A troy ounce, abbreviated as ozt, weighs more than the standard avoirdupois ounce used in grocery stores or other common measurement applications. The troy ounce weighs 480 grains, or 31.1035 grams. The standard avoirdupois ounce is the weight you'll find when you measure items at the grocery store or for cooking; the avoirdupois ounce is a little less-437.5 grains or 28.3495 grams.
Where did the troy ounce originate?
The troy ounce comes from the troy weight system, named after Troyes, France. The fair at Troyes in France was a popular destination during the medieval times, and the troy ounce has been retained as a measure for precious metals and gunpowder. The Roman monetary system forms the background for the troy weight system, and although the troy pound is no longer used in any form of measurement, the troy ounce is still utilized for precious metals and gunpowder.
Why the troy ounce?
It is thought that maintaining the troy ounce for these standards ensures maintaining common measures and purity consistent with historical data. For example, an item that weighed a troy ounce 200 years ago still weighs a troy ounce today; there's no change in calculating the weight and therefore the value of the item. This helps to maintain purity standards, as there is no change from old units of measurement to current standards.
Troy ounces are used for precious metals.
Troy ounces are typically the measurement used to determine the value of precious metals. When most dealers refer to the weight of gold, silver or platinum, they're referring to the troy ounce weight. Therefore, one ounce of gold would be 31.1035 grams, instead of the 28.3495 of the standard avoirdupois ounce.
Clarify what you're getting when you buy precious metals.
While troy ounces are the standard when dealing with precious metal commodities, some dealers or sellers don't specify the unit of measurement they're using and substitute the standard avoirdupois ounce instead of the troy ounce. Because the avoirdupois ounce weighs less, buyers who think they're getting a troy ounce worth of metal may be disappointed.
Make sure you know which unit of measurement that the dealer is using before you buy. You might find that the ounce of gold that seemed like such a great deal is actually a rip-off because you're not getting as much as you think you're getting.
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