What is a troy ounce?

Anyone interested in investing in gold in the form of gold bars or bullion coins will certainly encounter the term "troy ounce." This is a unit of weight that is also used for silver, platinum, palladium, and other precious metals. So what is a troy ounce? Where did it come from? And why is it so important today when purchasing investment products in gold or silver? Learn some interesting facts about the troy ounce and start building your investment portfolio with Mennica Skarbowa!

Troy ounce – a unit of weight for precious metals

The definition of a troy ounce is not complicated! It is simply a unit of weight commonly used around the world for precious metals such as gold, silver, platinum, and palladium. It should be added that a troy ounce is also known by the abbreviation "ounce" and the symbol "oz." Many people also call it a jewelry ounce. It is currently a commonly used unit of weight in many countries, partly because it has been specially adapted to the needs of the precious metals market.

Good to know! A troy ounce is not the same as an international ounce. There are significant differences between them, which concern conversion into grams.

Troy ounce – how many grams is that?

It is worth knowing that, apart from the purity of the metal, weight is the most important parameter for precious metals. It therefore has a significant impact on the market value of a given investment product. Gold bars, gold bullion coins, as well as bars and coins made of other precious metals, are often described using the troy ounce. How many grams does it equal?

One troy ounce is equal to 31.1034 grams (31.1 g = 1 ounce of gold). This specific unit allows for standardized and, importantly, very precise determination of the weight of precious metals. The troy ounce is commonly used by gold producers, mints affiliated with the LBMA, and distributors such as our Mennica Skarbowa.

However, this does not mean that all investment bars and bullion coins have a weight expressed in ounces. Investment products with a specified weight are also available for sale, e.g., a 1000 g gold bar or a bullion coin: 1 g Chinese Panda gold coin. There are, of course, many more examples – we invite you to visit our store and make quick and secure online purchases with delivery to the address of your choice.

How much does a troy ounce of gold cost?

The price of gold is quoted on global commodity exchanges as the SPOT price. Generally, such organizations indicate the value of one troy ounce of gold expressed in US dollars. Currently, the price of 1 oz of gold is above $2,360 (as of April 21, 2024), and according to forecasts, it may even exceed $3,000 in the coming months!

When it comes to factors shaping the value of gold, the most important one is the relationship between supply and demand for the precious metal. The current state of gold mining, the global political situation, and international economic policy are also significant factors. However, economists agree that the value of gold soars during periods of economic downturn. At such times, a rapid increase in the price per troy ounce of the precious metal can be observed.

Interesting fact! The SPOT price for 1 ounce of gold is not only quoted by commodity exchanges, i.e., state-regulated organizations. It is also quoted by the independent LBMA (London Bullion Market Association), which is recognized as a guarantor of the authenticity and highest quality of precious metals. Every day, LBMA experts publish a precisely calculated gold price according to strict market standards. This price is updated twice a day!

A few words about the history of the troy ounce

The troy ounce has nothing to do with ancient Greek mythology or the story of Troy.  Its origins can be found primarily in the history of European trade and the system of measurement that has been in use on the Old Continent for centuries. The origin of this unit of measurement for precious metals comes from the French city of Troyes, which in the Middle Ages was a very important center of trade, especially with the British Isles. For hundreds of years, the ounce has been a weight system associated with gold and silver, and this remains the case today.