The Difference Between Ounce and Troy Ounce

Above, reverse side of the Niue Godzilla vs. Kong coin. Photo by Armand Vaquer.

Every so often, when posting about coins and bullion, the terms ounce and troy ounce pop up. 

One may ask, What is a troy ounce? To tell you the truth, I knew that each are used in measuring the weight of different things, but didn't know the weights of each. Are they the same?  Actually no. A troy ounce is heavier than the ounce we are familiar with.

The Epoch Times posted an article explaining the difference between an ounce and a troy ounce. 

They begin with:

Precious metals like gold and silver are excellent investments. Unlike most financial assets, they offer protection against inflation and don’t pose a risk to your credit. But what good is such an investment if you don’t know how to calculate its value?

You might have difficulty determining how traders measure gold if you’ve recently started investing and collecting gold and silver. Understanding Troy ounce versus ounce is the first step in getting started in this field. Even when dealing with small amounts of gold and silver, using the wrong unit of measure causes complications.

What Is a Troy Ounce?

You’ve probably heard of “Troy ounce” in advertisements or marketing materials for precious metals like silver and gold. Typically, individuals familiar with the Troy ounce thoroughly understand its role in determining the value of metals in the bullion industry.

A Troy ounce is a unit of weight commonly used to measure the mass of precious metals. Since medieval times, goldsmiths and other metalworkers have used the Troy weight system. Today, traders worldwide use Troy ounces when calculating the value of silver and gold bars or coins. The abbreviation for Troy ounces is “oz t.”

Due to their high value, precious metals are often bought and sold in large quantities and need a specialized measurement scale. Investors tend to use Troy ounces over regular ounces because the former offers more precision than the latter.

The Troy ounce is the only measurement unit used by the Troy weight system, and this is the standard at sovereign and private mints because it ensures consistency in purity and weight. In addition to weighing precious metals, historically, manufacturers used Troy ounces to weigh gunpowder and pharmaceuticals.

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