It is useful to know the amount of Precious Metal content in each bullion. One term that trips up many is the troy ounce. The troy ounce is a confusing term for many people.

Precious metals are weighed using the traditional troy weight system rather than the more known "avoirdupois" units used when weighing other items.

Avoirdupois ounces are used to measure items such as salt, sugar, and coffee. The term avoirdupois literally translates to "goods of weight" and is the unit of measurement used in the United States to weigh practically everything other than precious metals.

If you put a 1 oz gold coin on a regular store scale, you'd find that it's around 10% heavier than an ounce of meat or vegetable. The ounce measurements are not the same.

A troy ounce of silver or gold is heavier and contains more precious metal than an avoirdupois ounce.

A standard ounce weighs 28.35 grams and a troy ounce weighs 31.1 grams. It may not appear to be significant, yet the troy system allows for greater precision. A pound is 16 standard ounces while it is 12 troy ounces. This difference isn’t noticeable, but it allows you to accurately weigh coins and bars that are tiny or thin.

Always keep the troy ounce in mind when purchasing for gold and silver. If you buy a 1/10 oz gold coin, the dealer will most likely quote it at roughly 30% less per troy ounce than a one troy ounce gold coin. This is because there is less gold in a smaller coin.

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