GOLD / SILVER / PLATINUM / GEMS LEXICON

What is a Troy Ounce?

Troy Ounce: A Unit of Measurement in Precious Metals

In the world of precious metals, a troy ounce is a unit of measurement used to express the weight of gold, silver, platinum, and other precious metals. One troy ounce is equal to 31.1034768 grams, and is approximately 10% heavier than a standard avoirdupois ounce.

The troy ounce has a long history, with its origins traced back to the medieval town of Troyes in France. The troy ounce was originally used to weigh spices and other goods that were traded in the town's market. Over time, the troy ounce became the standard unit of measurement for precious metals, and is still widely used today in the gold, silver, and platinum markets.

When investing in precious metals, it is important to understand the concept of "spot price." This is the current market price of a precious metal, expressed in troy ounces. Spot prices are constantly fluctuating, and are influenced by a number of factors, including supply and demand, political stability, and global economic conditions.

When buying or selling precious metals, it is also important to be aware of the concept of "pure gold" or "fineness." This refers to the amount of gold or other precious metal in a coin or bar, expressed as a percentage of the total weight. For example, a gold bar with a fineness of 99.99% is 99.99% pure gold and 0.01% other metals.

In conclusion, the troy ounce is a unit of measurement used in the world of precious metals, and is used to express the weight of gold, silver, platinum, and other precious metals. When investing in precious metals, it is important to understand the concept of spot price and fineness in order to make informed decisions.