FLASH SALE! - "FINANCIAL MODELING COURSE BUNDLE AT 60% OFF" Enroll Now

Troy Ounce

Updated on June 4, 2024
Article byWallstreetmojo Team
Edited byAaron Crowe
Reviewed byDheeraj Vaidya, CFA, FRM

What is a Troy Ounce?

A troy ounce (oz t) refers to a unit of measurement used to represent the weight of an object. It is different from the standard ounce and optimal for noting the weight of precious metals like gold, platinum, and silver.

Precious metals value per ounce usually refers to the measurement in a troy ounce. Using it standardizes the process of weighing precious metals worldwide, making it easy for investors to trade in assets like gold futures and options. A uniform unit of measurement also ensures the purity of precious metals.

Key Takeaways

• The troy ounce (oz t) is a unit of measurement developed in the Middle Ages.
• It is primarily used to measure precious metals such as gold, silver, and platinum.
• It is not equivalent to the standard ounce, and it is heavier than an ounce. Also, the standard ounce is commonly seen in measurement representation in the food industry.
• The common conversions in the troy weight system are 24 troy grains representing a pennyweight (dwt), 20 pennyweights representing a troy oz (t oz), 12 troy oz meaning 1 troy pound (t lb).
• 1 oz t equals 31.1035 gm or 0.0685714 lb or 0.0311035 kg.

Explanation

Troy ounce (troy oz) measure exhibits the troy system of weights. Its use was prevalent in the Middle Ages and continues even today. For instance, Various websites presenting financial market news represent the troy ounce price of silver and a troy ounce of gold price. The common conversions in the troy weight system are 24 troy grains representing a pennyweight (dwt), 20 pennyweights representing a troy oz (t oz), 12 troy oz meaning one troy pound (t lb).

Several analyses link the origins of the ounce concept to the Roman monetary system. Also, the term troy is derived from a major trading center in Champagne County, France, known as Troyes. This location was well-known for staging important fairs in the 10th century. Such trade events drew merchants and tradespeople from all around the world. Markets like this necessitated a defined set of rules for quantifying commodities, such as standardized weights. As a result, it stands to reason that the troy measurement emergence points to these ancient markets.

King Henry IV of England proposed “troy” as a unit of weight during the 14th century, and King Henry VIII proclaimed it the standard unit of measure for gold and silver in England in 1527. Furthermore, it was included in the British imperial weight system founded in 1824 and was selected as the official measure for coinage by the United States Congress in 1828.

Financial Modeling & Valuation Courses Bundle (25+ Hours Video Series)

–>> If you want to learn Financial Modeling & Valuation professionally , then do check this ​Financial Modeling & Valuation Course Bundle​ (25+ hours of video tutorials with step by step McDonald’s Financial Model). Unlock the art of financial modeling and valuation with a comprehensive course covering McDonald’s forecast methodologies, advanced valuation techniques, and financial statements.

Conversions

It is common to convert the troy weight into different units for understanding and calculation purposes. These include:

For eg:
Source: Troy Ounce (wallstreetmojo.com)

#1 – Troy ounce to grams

To convert a troy weight to grams, multiply the given value in troy oz by 31.1035. The resulting product is the value in grams.

For example:

Convert 100 oz t into gm

100 oz t = 100 × 31.1035 gm

= 3.11035 gm

#2 – Troy ounce to pounds

To convert to pound (lb), divide the troy oz value by 14.583. Also, one troy pound is equivalent to 12 troy oz.

1 lb = 14.5833 oz t

1 oz t = 1 ÷ 14.5833 lb

For example:

Convert 100 t oz into lb

100 t oz = 100 ÷ 14.5833 lb

= 6.8571 lb

#3 – Troy ounce to kilo

To convert a troy oz mass to kilograms, divide the troy oz mass value by 32.15.

1 kg = 32.1507 oz t

1 oz t= 1 ÷ 32.1507 oz t

For example:

Convert 100 oz t into kg

100 oz t = 100 ÷ 32.1507 kg

= 3.11035 kg

Due to international trade, the conversion of troy weight masses to other units like grams, kilograms, and pounds is standard. Conversion nowadays is much easier because online converters give accurate figures.

The Troy Ounce vs Ounce

The units used to represent the weight measurement of substances usually vary by industry. For instance, weights are commonly measured in ounces or grams in the food industry. Whereas troy ounces dominate as the basic unit of measure in the case of precious metals and gems.

1 oz t = 1.09714 oz

An ounce is also known as avoirdupois ounce, referring to a unit of weight equivalent to one-sixteenth of a pound avoirdupois. An oz weighs 28.349 gm or 437.5 troy grains or 0.912 oz t. A troy oz weighs 31.1035 gm, 480 troy grain, or 1.097 oz. These data reveal that measurement in a troy ounce is heavier than one in an ounce. Though the difference may seem small, it adds to significant variance when weighing heavier goods.

Why do they call it a troy ounce?

The term troy is originated from Troyes, a prominent trading hub in Champagne County, France. In the 10th century, this area was well-known for hosting significant trade events. Such trade shows attracted merchants and artisans from all over the world. It demanded a clear set of norms for quantifying goods, such as uniform weights. As a result, it seems that the troy oz originated in these ancient marketplaces and hence the term.

What is a troy ounce worth?

1 oz t = 1.09714 oz
A troy oz is 31.1035 gm, 480 troy grain, or 1.097 oz in weight. In addition, one troy oz or oz t equals 0.0685714 lb or 0.0311035 kg.

What is a troy oz of gold?

A troy oz weighs 31.1034768 gm, and a 12 troy oz makes one troy pound. A troy oz of gold contains 31.1035 grams of 24 karats pure gold.

This article has been a guide to Troy Ounce and its Meaning. Here we discuss conversions, their differences from ounce, along with a detailed explanation. You can learn more from the following articles –