Gold prices have reached historic highs recently, creating a lot of talk around the price of gold. Now has never been a better time to sell your gold, whether its jewellery, scrap, bars or coins. However, people can become confused and be faced with difficulty when trying to value their gold from home. In order to maximise your returns, it's crucial to understand precisely how your gold is measured and how a value is calculated.
Gold is priced in the global market per troy ounce. In this article, we'll clearly explain the differences between a troy ounce and an ounce, show you how you can calculate your gold's worth accurately from home, and highlight why some key factors that should be considered when looking to cash in your gold.
When selling any precious metal such as gold, precise measurements directly influence how much money you will receive. Gold along with other precious metals are commonly valued using the troy ounce unit of measure. Misinterpreting this, or using the wrong units can significantly undervalue your gold. If you go to a gold buyer equipped with incorrect values, you may be taken advantage of by the wrong type of buyer.
By clearly understanding the difference between a troy ounce and a standard ounce, you ensure accurate valuations and fair transactions.
An imperial measure previously widely used in the UK before the adoption of the metric system. A standard ounce, officially known as the avoirdupois ounce, was historically used throughout the UK for everyday items such as groceries, postal services, and household products. However, most day-to-day measurements in the UK have now transitioned to grams and kilograms under the metric system.
1 ounce (oz) = 28.35 grams
The avoirdupois ounce originated from the French term "Aveir de pois," meaning "goods of weight." A standard ounce became widely adopted throughout Europe for trade in everyday goods during the 13th century and was later standardised in England in the 14th century, becoming the primary unit for general goods and commodities. The standardised use of imperial units began to be phased out in 1965. However, we still see imperial units occasionally used in the UK.
The troy ounce is specifically used to weigh precious metals like gold, silver, platinum, and palladium. It's used by commodity exchanges such as COMEX and London Bullion Market (LBMA) to quote prices of precious metals. The troy ounce is abbreviated to “t oz” or “ozt”
1 troy ounce (ozt) = 31.103 grams
The troy ounce has origins in the medieval market town of Troyes in France, where traders developed a standardised measurement specifically for precious metals and gemstones. It was then widely adopted in the early Middle Ages. The troy ounce became an international standard among goldsmiths and jewellers, distinguishing it from the avoirdupois ounce used for common trade.
A troy ounce is roughly 10% heavier than a standard ounce. This extra weight significantly impacts your gold’s valuation and is crucial you get this right when calculating a potential selling price.
It's critical to remember that an ounce used for everyday items is lighter by approximately 2.75g than a troy ounce used for precious metals. One troy ounce is equivalent to 1.09714 avoirdupois ounces.
| Measurement Type | Weight in Grams | Usage |
|---|---|---|
| Troy Ounce (ozt) | 31.103 grams | Precious metals (gold, silver, platinum) |
| Ounce (oz) | 28.35 grams | Everyday items (food, postal items, etc.) |
This table clearly shows the substantial weight difference between a troy ounce and a regular ounce.
In the UK, most household scales measure weight in grams. Its important to only use this as a guide, as the average set of digital kitchen scales will not have the same accuracy or calibration as professional grade precious metal scales.
To calculate your gold’s value accurately, you will need to convert troy ounces to grams using the following steps:
For example:
Suppose you have 62.2 grams of gold.
Convert troy ounce spot to grams so £2,300 / 31.103 = £73.95
Multiply your gold weight by the spot price per gram 62.2 x £73.95 = £4,599.69
Important: This is based on the assumption that your gold is 24ct pure, as the spot price is quoted for pure 24ct gold.
If your gold is 9ct for example this contains 37.5% pure gold, so after you have weighed your gold you would need to calculate the pure gold weight which would be 37.5% of 62.2g = 23.32g of pure gold. You can then continue with the remainder of the calculation.
Each gold carat purity represents a percentage of pure gold in the item, 9ct = 37.5%, 22ct = 91.67% pure gold etc. You can find reference for each purity online.
To ensure you get accurate results, avoid these common mistakes:
To ensure you maximise your returns, follow these best practices when selling gold:
Here are answers to common questions sellers frequently ask:
Q: Do jewellers always use troy ounces?
A: Not always, this is generally reserved for trading gold bullion. Where gold coins are minted in troy ounce weights such as the 1 toz Gold Britannia, and gold bars in 1toz sizes.
Q: How do I know if my scale measures troy ounces?
A: Check your scale’s specifications. A scale that measures precious metals will clearly indicate "troy ounces" or "ozt."
Q: Can confusion between ounces and troy ounces cost me money when selling gold?
A: Yes, significantly. Mixing up these measurements could undervalue your gold by approximately 10%, potentially costing you hundreds or even thousands.
Clearly understanding the difference between a troy ounce and a standard ounce ensures you have clarity when you are buying gold or selling gold in the UK. With current gold prices at historic highs, accurately weighing and valuing your gold has never been more critical.
Take advantage of today's favourable market conditions. For an accurate valuation and expert advice, contact our trusted team or use our online gold calculator. Act now to ensure you receive the maximum possible value from your gold!
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