Troy Ounce
Definition
A troy ounce is the standard unit of measurement for precious metals, equal to 31.1035 grams. It is approximately 10% heavier than a standard avoirdupois ounce (28.3495 grams), which is the ounce used for everyday items like food. When gold is quoted at "$2,000 per ounce," it means per troy ounce. The troy system dates back to medieval trade markets and remains the global standard for pricing gold, silver, platinum, and palladium.
Why It Matters for Gold IRA Investors
Understanding that precious metals use troy ounces prevents confusion when comparing prices or calculating the value of your holdings. A one-ounce gold coin weighs 31.1 grams, not 28.3 grams — and that difference matters when you are evaluating costs, premiums, and the weight of bars or coins in your Gold IRA.