Why is Gold Measured in Troy Ounces

Precious metals including gold are typically measured in troy ounces. However, this is not a mainstream unit of measurement and is different from an ounce. So what exactly is a troy ounce? Let’s dive into the details to get to know all about it.

If you are someone looking to invest in any of the precious metals including gold or silver, then you need to know that they are typically measured in troy ounces. A troy ounce is a different unit of measurement than an ounce. One ounce weighs approximately 28.349 grams, whereas one troy ounce weighs approximately 31.105 grams. A troy ounce weighs approximately 10% more than an ounce.

Where did troy ounces come from? The troy ounce was first used as a measure of weight by English and French Merchants to facilitate trade. At that time, it was an official unit of weight. In fact, the first records of troy ounces being used for coins dated back to the Roman monetary system. Prior to the advent of the metric system in Europe, troy ounces were used to measure gold and silver throughout Europe and the British commonwealth. When Europe adopted the metric system, America kept using troy ounces to measure gold. Today, as the gold market is primarily linked to the US Dollar, gold is still priced in troy ounces. Comex delivery gold bars are available in 400-ounce size, and retail gold bars are available in 1 ounce and 10-ounce sizes. Most gold coins are also available in 1 ounce and fractional ounce sizes.

There are other significant units of measurement for the bullion market. These include grams and kilograms, which are used mostly in Europe. In parts of Asia, gold is measured in Tolas (11.66 grams = 1 Tola). However, the gold price, when looked at in the news or on the stock exchange, is still always priced in troy ounces, and this remains by far the most popular unit of measurement for precious metals.