Gold Price Per Ounce - Are You Sure You Differentiate Between Troy and Imperial Ounce?
Gold price per ounce is a traditional measure for weight of gold, as it is for other precious metals also. But you must differentiate between troy ounce or a regular (imperial) ounce!
Gold price per ounce is a traditional measure for weight of gold, as it is for other precious metals also. But be careful since gold price can be expressed for troy ounce or a regular (imperial) ounce. Normally, when you see gold price per ounce published, it is talking about a troy ounce. Not understanding the difference between these two ounce measures is primary misunderstanding between gold buyers and sellers.
Gold Troy Price Per Ounce vs. Gold Imperial Price Per Ounce
So what's the difference between gold troy and imperial price per ounce? The simple answer is about 10%. Officially 1 imperial ounce of gold exactly equals 0.911458333 of a troy ounce.
1 Imperial Ounce = 0.911458333 Troy Ounce
1 Troy Ounce = 1.09714285 Imperial Ounce
We can also present imperial and troy ounce in grams.
1 Troy Ounce = 31.1034768 Grams
1 Imperial ounce = 28.349523125 Grams
If you are buying precious metals - on eBay for example, you really need to be sure which type of ounce you are getting - because a troy ounce is over 9.7% heavier than an imperial ounce! A troy ounce is a unit of measurement used almost exclusively these days in precious metals markets.
Gold Price Per Ounce/ Gram Calculator
If someone lists a weight in grams you are safe and know the weight. Now to convert from grams to troy ounces is easy, it takes 31.1034768 grams to make one troy ounce. If you have a weight of 126 grams you just take 126 and divide by 31.1034768 this will give you troy ounces. 126/31.1034768 = 4.05 troy ounce. Try it yourself...
You will also see listings with weights of grains; do not confuse this with grams. It takes 15.4326 grains to equal one gram. A grain is equal to 1/7000 pound; equals a troy grain or 64.799 milligrams.
Are You the Seller of Gold?
The current gold price per ounce is not what you can expect when selling gold. It represents the maximum value of your gold for shiny new bullion bars as traded on the commodity exchanges. It doesn't take into account the cost of turning your scrap gold into bullion or the profits of the gold buyers. 80-90% of this value is realistically the most you can expect to receive. Please bear in mind that if the price you get is per ounce, they are talking about a troy ounce.
If You Are the Buyer of Gold...
If you see an item made of gold listed and they give the weight as (imperial) ounces, be suspicious. It is an advantage to the seller that you will think that this is the amount of silver or gold that they have for sale. They boost the perceived value by 8.9% when they list it this way. If they list imperial ounces and not troy ounces just take the amount listed and multiply by 0.91. For example, if sellers state it is 10 (imperial) ounces just take 10 x 0.91 = 9.11 troy ounces.
You will also see people list weights on items by (postal) ounces; this is not a troy ounce. Just use the same calculation, 91% of the amount listed.
Written by: Goran Dolenc
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