Gold Bullion Weight – What Lies Behind Troy Ounce Measurement?

Gold Bullion WeightWhen it comes to gold bullion weight, what is the history of the troy ounce and why is it used for precious metals?

A troy ounce comes from an older system of weighing that was believed to be used in France, at the fair of Troyes, although this cannot be verified with certainty. This measurement of gold bullion weight has been used since before the tenth century though, and is still used today when precious metals are weighed. Before the establishment of this standard, weighing gold and gemstones was done differently in various parts of the world presenting some confusion and discrepancies. Another source states that the term “troy” did not originate in France, but rather in the Kingdom of Mercia on the territory of modern United Kingdom. If you want to know how to buy gold bullion, you will need to understand that this metal is weighed using troy ounces, which weigh slightly more than thirty two grams, not the usual twenty eight gram ounces.

Through history bullion had been used as money, and the value was determined by the gold bullion weight used. The weight and the monetary value of the precious yellow metal has always been tied together, and using a troy ounce has been the standard for weighing precious metals for centuries. This is why many coins are available as a 1 oz gold bullion coin, because this coin has a known weight, quality, and value. One example is the 1 oz gold Krugerrand, which is very popular with investors. The troy ounce sets an international standard to be followed, so that precious metals everywhere around the world are weighed according to this single standard.

Gold bullion weight is weighed according to the troy ounce, so be wary of any buyers or sellers who try and use another form of weight measurement. If you plan on buying scrap gold this is important, because you will get thirty two grams for the ounce price, versus the usual twenty eight grams. The troy ounce standard of bullion ensures that there are no discrepancies in the precious metals markets, and that the playing field is level no matter where the buyer and seller are located.

You might be interested to find out that this weighing standard is used not only for precious metals but also for precious stones and even gunpowder.