Troy Ounce Versus Ounce: What’s the Difference?

Gutta100/Shutterstock

Precious metals like gold and silver are excellent investments. Unlike most financial assets, they offer protection against inflation and don’t pose a risk to your credit. But what good is such an investment if you don’t know how to calculate its value?

You might have difficulty determining how traders measure gold if you’ve recently started investing and collecting gold and silver. Understanding Troy ounce versus ounce is the first step in getting started in this field. Even when dealing with small amounts of gold and silver, using the wrong unit of measure causes complications.

What Is a Troy Ounce?

You’ve probably heard of “Troy ounce” in advertisements or marketing materials for precious metals like silver and gold. Typically, individuals familiar with the Troy ounce thoroughly understand its role in determining the value of metals in the bullion industry.

A Troy ounce is a unit of weight commonly used to measure the mass of precious metals. Since medieval times, goldsmiths and other metalworkers have used the Troy weight system. Today, traders worldwide use Troy ounces when calculating the value of silver and gold bars or coins. The abbreviation for Troy ounces is “oz t.”

Due to their high value, precious metals are often bought and sold in large quantities and need a specialized measurement scale. Investors tend to use Troy ounces over regular ounces because the former offers more precision than the latter.

The Troy ounce is the only measurement unit used by the Troy weight system, and this is the standard at sovereign and private mints because it ensures consistency in purity and weight. In addition to weighing precious metals, historically, manufacturers used Troy ounces to weigh gunpowder and pharmaceuticals.

What Is an Ounce?

An ounce, generally abbreviated as “oz,” is an avoirdupois ounce, an American measurement of weight and mass. Imperial system measurements measure 28.3495 grams, 1/16th of a pound, or 437.5 grains.

Under the US system, we use avoirdupois ounces to calculate the weight of food and even postal packages. Fluid ounces measure the volume of liquids and drinks.

Troy Ounce Versus Ounce

Is a Troy ounce the same as a regular ounce? What are the main differences between a Troy ounce and an ounce?

Many people tend to conflate the two terms. It’s important to note that the Troy ounce differs from the units of measurement used in households, and you can’t measure flour or milk in Troy ounces. Liquids and drinks served in bottles and cans aren’t measurable by Troy ounces.

•  Troy ounces and avoirdupois ounces measure different classes of items.

While avoirdupois ounces measure everyday household items and goods such as liquids, foods, and cooking ingredients, Troy ounces only measure silver and gold coins.

•  Troy ounces are heavier.

The main difference between a Troy ounce and an avoirdupois ounce is the weight; a Troy ounce weighs more than a standard ounce. In imperial measurements, one Troy ounce weighs about 31.103 grams or 480 grams, making it about 10 percent heavier than one regular ounce (1 Troy oz = 1.097 avoirdupois ounces).

On the contrary, an ounce is 28.349 grams. The weight difference may seem minor on the surface, but the difference is especially noteworthy when a silver bar is sold or purchased in larger quantities.

•  They are measured differently.

Another distinction between Troy ounces and ounces is how they are measured. One ounce is equivalent to 1.16 pounds. Since a Troy ounce is heavier than a traditional ounce, you would assume that the same holds for pounds, correct? The truth is that the Troy pounds are lighter than standard pounds. A Troy pound is 12 ounces, while 16 ounces equals a pound in the imperial system.

What Is the Origin of the Troy Ounce Weighing System?

Now that you fully understand the metrics involving the Troy ounce, it’s time to explore the historical aspects of this weighing system. The Troy ounce is just one of the units of measure from the Troy weighing system. There are several theories surrounding the origin of the Troy ounce, and there may be some truth to many of them. Top theories include:

• The name Troy originated from a famous town in France called Troyes. Troyes was the center of e-commerce during the 1200s. Bronze bars were commonly sold in this town. A pound was composed of 31.1 grams divided into 12 equal parts.
• Some believe that the term Troy comes from the French name Tresorerie de l'Hôtel des Monnaies (or the Treasury of the Hotel des Monnaies), the name of a French coin factory that established this system of measurements at its formation in Troyes, France.
• The Troy weighing system began to spread throughout Europe as trade grew. The primary unit of measure used during bullion transactions was the Troy ounce. ‌The Troy ounce became France’s official measurement unit for gold and silver in 1828. The unit of measure also took front and center in the British coinage system.
• The Roman monetary system heavily influenced the Troy unit of measurement. For centuries, the Troy ounce played a crucial role in shaping the commodities market.

Why Do Troy Ounces Matter?

Although avoirdupois ounces help determine the weights of household products and other goods, they are of little use when dealing with precious metals. Traders base the pricing of their bullion collections on the number of Troy ounces it contains. Because Troy ounces are the primary weighting system on the bullion market, you'll need to become well-versed in calculating the weight of your precious metals.

The gold and silver Troy ounces are the most popular unit sizes. ‌Besides its flexibility, it allows investors to track the performance of their bullion against the global market, which‌ ‌displays gold and silver in Troy ounces.

The Oxford Gold Group helps investors protect and grow their wealth by purchasing physical gold and silver for their IRAs and for home delivery as effortlessly and securely as buying bonds or stocks. That’s why investors have turned to the security of gold and silver and the Oxford Gold Group. Call 833-600-GOLD or visit OxfordGoldGroup.com  to receive a complimentary copy of “Your Precious Metals Investment Guide.”

Third-party advertisements and links to other sites where goods or services are advertised aren’t endorsements or recommendations by The Epoch Times of the third-party sites, goods, or services. The Epoch Times takes no responsibility for the content of the ads, promises made, or the quality/reliability of the products or services offered in all advertisements.