What is a Troy Ounce?
The expression troy ounce is widely in use by the precious metals industry. If you’re new to precious metals, you may have been wondering what is a troy ounce and why is it significant to the precious metals industry? This article will reveal the history of the troy ounce, precious metal scales, the troy ounce in modern times, with a dash of color grades.
The History of the Troy Ounce
The term “troy ounce” has its origins in medieval Europe, particularly in the city of Troyes, France, during the 15th century. The city was a major trading and financial center, and its influence extended to the precious metals market.
Troyes, a historic city in northeastern France, has a rich economic history that spans centuries, marked by periods of prosperity and decline. The economic rise and fall of Troyes can be traced through its evolution from a thriving medieval trading center to a city that faced challenges in the modern era.
The time before there was a troy ounce
Troyes’ ascent began in the medieval period, particularly during the Middle Ages, when the city became a prominent hub for trade and commerce. Situated at the crossroads of major trade routes, Troyes was strategically positioned for economic success. The city’s prosperity was closely tied to its status as a key center for the Champagne fairs, renowned trade fairs that attracted merchants from across Europe.
During the 12th and 13th centuries, Troyes experienced a boom in economic activity. The Champagne fairs, which took place in the city, played a crucial role in fostering commercial exchange. Merchants, craftsmen, and traders converged on Troyes to showcase and exchange a wide array of goods, including textiles, spices, wines, and luxury items. The fairs not only stimulated the local economy but also contributed to the city’s cultural and intellectual vibrancy.
Gold was not the main attraction in Troyes
Troyes was known for its skilled artisans, particularly in the production of textiles. The city gained a reputation for high-quality fabrics. Its weavers and cloth merchants played a significant role in shaping the economic landscape. The prosperity of the textile industry contributed to the construction of impressive Gothic structures. Including the Saint-Pierre-et-Saint-Paul Cathedral and the Basilica of Saint-Urbain.
As the economic hub of the region, Troyes became a flourishing center of banking and finance. The Counts of Champagne, who ruled the area, supported and encouraged economic activities, further fueling the city’s growth. The Champagne fairs, coupled with a favorable political climate, led to a period of economic affluence for Troyes.
Riches must be accounted, a Troy ounce was needed in Troyes
In the 1400s, merchants and goldsmiths in Troyes were actively involved in the trade of precious metals. Particularly gold and silver. To standardize transactions and ensure fairness in trade, a system of weights was born. This system, known as the troy weight system, became widely adopted in the precious metals trade.
The troy ounce, which is the basic unit of the troy weight system, is equivalent to approximately 31.1035 grams. Unlike the avoirdupois system commonly used for most goods, the troy weight system has distinct characteristics. Some believe that the troy weight system has relation to the city of Troyes. Apparently making a connection. And it was here, where the market for precious metals flourished.
More than likely, its origin as a central weight was simply a random unit that was routinely in employ. Likewise, the meter is a metal bar in France, that is… well, the length of a meter. As that was not very scientific, apparently to appear more official, we now define the meter as the distance light travels, in a vacuum, in 1/299,792,458 seconds. Anyway, a central agreed upon unit had to be something. When it came to gold, the troy ounce was that something.
The time came to be when the Troy ounce began to travel on its own.
By the 16th century, Troyes faced economic challenges, compounded by the effects of religious conflicts, including the French Wars of Religion (1562–1598). The city struggled to regain its former prominence as other urban centers, like Paris, emerged as new economic powerhouses. The decline continued into the 17th and 18th centuries, as Troyes grappled with economic stagnation and social unrest.
The troy ounce gained international recognition over time. Becoming the standard unit of measurement for precious metals, including gold, silver, platinum, and palladium. Its use extended beyond Troyes and became widely accepted in European trading centers and eventually around the world.
Eventually the British Empire adopted the unit. Then the troy ounce became the official unit of weight for precious metals in the 15th century. A tradition that is alive and well. As the troy ounce is still in use to measure the weight of precious metals. And has almost become a surname of gold, silver, platinum, and palladium.
One of the key factors that contributing to the widespread adoption of the troy ounce was the prominence of the British Empire in global trade during the 19th century. As British imperial influence expanded, so did the use of the troy ounce in international trade and finance. The British gold sovereign, a widely circulated coin, was minted using the troy ounce standard, further solidifying its prevalence.
Color Grades and Scales for Weighing Precious Metals
Beauty is in the eye of the beholder met its match when it comes to measuring precious metals. Color grading and scales are important factors to consider. Yet subtle is the line when a color passes a grade or not. Color grades determine the purity of a precious metal. Opposite of precious gems, the higher grades with metals indicates a higher level of purity.
Scales perform their traditional objective function of simply weighing the metals. In the precious metal industry, there are several different scales that we use. Including the troy ounce, the metric system, and the avoirdupois system.
But weighing the elusive metals is a finite art. If you have ever wondered what exactly is the difference between gold and silver, now you can see for yourself.
Pay attention to details when shopping for the noble metals:
A rather large gathering of the above atoms can result in a significant change in value.
The raw science says one troy ounce is equal to 31.1034768 grams, or about 1.097 ounces in the avoirdupois system. You may be more familiar with the feel of this weight than you think. Common objects that way 1 oz. are the pencil, a CD, AA battery, and a slice of whole wheat bread. You probably never noticed that when you picked up 6 sheets of paper you were holding an ounce. Same when you held a $1.25 in all quarters (that’s 5 quarters for those using the metric system). The next time you need to test the weight of a claimed 1 oz, you can verify with 28 paperclips.
Or ten pennies if you are in a pinch.
What became of Troyes?
In the 20th century, Troyes underwent further transformations as the global economy evolved. The decline of traditional industries and the shift towards a more service-oriented economy presented new challenges for the city. Modernization efforts and initiatives aiming at diversifying the economy were temporary solutions. But Troyes continues to struggle to regain its former economic prominence.
Despite facing economic challenges, Troyes has preserved its historical charm and cultural heritage. Today, we recognize the city for well-preserving its medieval architecture, museums, and vibrant arts scene. The economic rise and fall of Troyes reflect broader historical trends. The city’s resilience and commitment to preserving its heritage contribute to its continued significance in the 21st century.
The Troy Ounce Waits for No One
Today, the troy ounce remains the standard unit of measurement for precious metals in markets worldwide. It is utilized in the pricing, trading, and valuation of commodities such as gold and silver. The historical connection to Troyes, France, serves as a reminder of the city’s influential role. Shaping not only economic practices but also the very units of measure that continue to impact global markets today.
Central to measuring precious metals, the troy ounce is the most common unit of measurement. Our industry’s gold standard unit of weight. Be it for silver, platinum, palladium, as well as the other four precious metals, and of course gold.
The key take away is we must be diligent and do our homework with precious metals. It’s important to understand the weight and purity of the metal you are buying. As well as the current market price of a troy ounce. Because that is the most important unit of weight in the precious metal industry. We hope you now have a better understanding of what a troy ounce is. This industry-wide importance is key to making informed decisions.
