Convert Troy Ounces To Grams

Why are PGMs measured in Troy Ounces?

Precious metals are measured in troy ounces due to historical and practical considerations that have endured for centuries. The troy ounce system has its roots in the medieval trading practices of the 19th-century gold and silver merchants in Troyes, France, which became a prominent trading center. The system eventually spread throughout Europe and gained acceptance in international trade.

Unlike the avoirdupois ounce, which is commonly used in everyday commodities like food and is based on a pound of 16 ounces, the troy ounce system is distinct. One troy pound comprises 12 troy ounces, emphasizing a division based on the duodecimal system rather than the more common decimal system. This distinction is crucial in the context of precious metals because it provides consistency in measuring their weight across different commodities.

The troy ounce system's enduring use in the precious metals market is also attributed to its application in coinage. Throughout history, coins were often minted with a specific weight of precious metal, and the troy ounce provided a standardized unit for this purpose. The system is particularly prevalent in the gold and silver markets, where precise measurements are essential for determining the value of these precious metals.

Moreover, the troy ounce has become a standard in the commodities and financial markets. Precious metals, such as gold, silver, platinum, and palladium, are globally traded commodities, and the uniformity provided by the troy ounce simplifies transactions and ensures consistency in pricing.

Use the LPPM Weight Convertor