A Common Misconception Between Ounces and Troy Ounces
One of the biggest misconceptions for investors who are new to the bullion marketplace is that an ounce and a troy ounce are equal. This is not the case, and many people are frequently confused when their products weigh more than one ounce. In fact, most products are referred to in ounces but are actually sold in troy ounces. The reality is that the vast majority of bullion dealers are referring to troy ounces when they say “ounces”. This is the “industry standard.”
History Of The Troy Ounce
Thousands of years ago, precious metals were weighed using the same system as everyday items. However, this complicated the Roman monetary system, so Rome decided to establish a new weighing system exclusively for gold, silver, platinum, and gunpowder- the troy ounce
The Difference Between The Two Ounce Units
Ounce (oz): 28.3 grams
Troy Ounce (ozt): 31.1 grams
A troy ounce weighs about 10% more compared to an ounce, which makes a big difference when it comes to precious metals.
1 troy ounce = 1.097 ounce
Besides the obvious weight differences, there is another distinction in the way they are measured. Everyone knows that 1 oz = 1/16 lb so a troy pound must be heavier right? Contrary to popular belief, it's not. A troy pound is actually only equal to 12 troy ounces, which ends up being lighter. So in terms of weight 1 pound of silver is approximately 80 grams more than 1 troy pound of silver. For this reason, most of the bullion being traded and sold is measured in troy ounces or kilos. This avoids confusion between the conversions between troy ounces and troy pounds.
The Importance of Buying In Troy Ounces
It is important to be aware of what you are buying because certain unverified dealers will sell precious metals in ounces instead of troy ounces. This small difference can make one product look like a much better deal but don’t be fooled. If you know and trust your source for bullion, this deception is rare and not likely something you would have to worry about.
The best way to make sure it is in troy ounces is to buy products with their weight and purity engraved on them. This is a common industry practice, but in the case that a silver round does not have the weight & purity engraved on it, it may be hard to sell it on down the road. Another option is to buy government minted products. Government mints will not produce bullion that is not in troy ounces.
Buy Bullion In Troy Ounces At SD Bullion
Find great deals on silver rounds, coins, bars all in troy ounces right here at SD Bullion.com. SD Bullion is one of the largest bullion dealers in the US and is proud to sell bullion at the Lowest Price. Period.
Chris Keller has a passion for the precious metals industry (he's been collecting coins since he was a child). He specifically enjoys creating written and video content around unique products that our customers might not see otherwise. At SD Bullion, Chris has consulted thousands of bullion investors leading to millions of dollars in sales.