A troy ounce is a unit of measurement commonly used for precious metals such as gold, silver, platinum, and palladium. The troy ounce system originated in France and was later adopted in England during the Middle Ages. It differs from the more common avoirdupois ounce used today for most other goods. While an avoirdupois ounce equals 28.35 grams, a troy ounce is equal to 31.10 grams.
This makes a troy ounce about 10% heavier than an avoirdupois ounce. The troy system is still used widely around the world today for measuring the weights of precious metals in trading and exchange. Understanding troy ounce conversions is essential for investors and collectors dealing in gold, silver, and other high-value metals.
What is a Troy Ounce?
As mentioned, a troy ounce is defined as exactly 31.1034768 grams. One troy pound equals 12 troy ounces, making a pound about 10% heavier in the troy system than the avoirdupois system. The key difference between the two units is their original intended usage. Avoirdupois ounces and pounds were traditionally used for measuring everyday goods in commerce, such as produce, meat, and fabrics.
The troy system was reserved specifically for precious metals. The advantage of the heavier troy ounce when trading in precious metals is that relatively small quantities can represent large values. Even today, currencies are defined in terms of troy ounces of gold and silver rather than avoirdupois ounces.
The word “troy” comes from the French town of Troyes, an important center of trade in the Middle Ages where the unit was standardized. Over time, the troy system spread to other European countries involved in precious metals trading, including England. It remains the standard measure for metals like gold and silver worldwide today.
Origins of the Troy Ounce
As mentioned, the troy weight system has its origins in medieval France. During the Middle Ages, France was the leading European political power and a vital center of regional and international trade. The city of Troyes in northern France was an important hub for precious metals trading. Merchants needed a standardized system of measurement to exchange goods, leading to the development of the troy ounce in Troyes.
The troy system spread first throughout France and then to England as a convenient method for weighing gold and silver. England at the time had a complicated system of weights and measures that varied across different trades. The troy system’s arrival eventually led to the standardization of precious metals measures.
By the 14th century, the troy ounce and pound were firmly entrenched in England alongside traditional avoirdupois weights. In 1527, the troy ounce was officially recognized by the English Crown as the official unit of measure for gold, silver, and other metals. The troy system remains in use worldwide today for pricing, measuring, and valuing precious metal investments and bullion.
Key Facts About the Troy Ounce
Here are some key facts to keep in mind about the troy ounce:
– Equal to 31.1034768 grams exactly.
– Originally used as a measure for precious metals.
– 12 troy ounces in one troy pound.
– A troy ounce is about 10% heavier than an avoirdupois ounce.
– The avoirdupois ounce equals 28.35 grams.
– Based on the medieval marketplace of Troyes, France.
– Made an official unit of measure in England in 1527.
– Used globally today for weighing and pricing precious metals.
– Important for pricing gold, silver, platinum, and palladium bullion.
So in summary, the troy ounce is a specialized larger unit defined for measuring precious metals originating from medieval French trade. It continues today as the standard measure used by dealers and investors worldwide.
Converting Between Troy and Avoirdupois Ounces
Because troy ounces are heavier than avoirdupois ounces, you cannot directly substitute one for the other by weight. Converting between the two requires a mathematical formula.
To convert troy ounces to avoirdupois ounces:
1 troy oz x 0.911458333 = 1.097142857 avoirdupois oz
To convert avoirdupois ounces to troy ounces:
1 avoirdupois oz x 0.911458333 = 0.911458333 troy oz
So for conversions:
– Multiply troy ounces by 0.911458333 to get avoirdupois ounces.
– Multiply avoirdupois ounces by 0.911458333 to get troy ounces.
For example:
– 10 troy oz x 0.911458333 = 9.11458333 avoirdupois oz
– 5 avoirdupois oz x 0.911458333 = 4.557291665 troy oz
This allows easy conversion between the two units using the constant 0.911458333 as the conversion factor.
Origins of the 10th Troy Ounce
Now that we have reviewed troy ounces, what is a 10th of a troy ounce? A tenth refers to one part out of ten equal parts. So a tenth of a troy ounce is simply equal to one part out of ten in a full troy ounce. Historically, precious metals were often divided into smaller fractional measurements for pricing or exchange.
Fractional troy ounces allow dealing in small quantities without requiring cumbersome decimal points. When trading or investing small amounts of high-value metals, fractions are more convenient than decimals. Precious metals can be purchased today in various fractions of a troy ounce, including halves, quarters, tenths, and even twentieths.
The convenience of tenths made them a popular fractional weight over time. Just as a dime is one tenth of a U.S. dollar, a tenth-ounce represents one tenth of a full troy ounce. The use of tenths simplified transactions between merchants and consumers when trading small volumes of precious metals. Today, tenth-ounce bullion coins and bars remain a popular size for small investors and collectors.
Key Facts About a 1/10 Troy Ounce
Here are the key details about a 1/10 troy ounce:
– Equal to one tenth of a full troy ounce.
– Calculated as 1 troy oz / 10 = 0.1 troy oz.
– Provides a convenient fractional size for trading.
– Allows pricing tiny amounts of precious metals.
– Represents 3.11034768 grams.
– Popular size for small bullion coins and bars.
So in summary, a tenth of a troy ounce is an established fractional measurement ideal for pricing and exchanging limited quantities of precious metals.
Comparing 1/10 vs. 1 Troy Ounce
To understand the size of a 1/10 troy ounce, it helps to visualize it compared to a full troy ounce:
– 1 troy ounce = 31.1034768 grams
– 1/10 troy ounce = 3.11034768 grams
So a 1/10 oz is exactly one tenth the weight of a full troy ounce in grams.
Another way to compare them:
– If a 1 oz gold coin contains 1 oz of pure gold,
– A 1/10 oz gold coin would contain 1/10 oz of pure gold.
A 1/10 oz bullion coin is much smaller in size than a 1 oz coin, since it contains only one tenth the amount of precious metal. However, the 1/10 oz coin would be priced around one tenth the market value of gold compared to the 1 oz coin.
This demonstrates the value of fractional sizes – they allow investing in precious metals at a more affordable price point for small investors. The tenths system provides an easy way to pay and receive fair value for tiny portions of gold, silver, platinum etc when full ounces are unavailable or impractical.
Converting 1/10 Troy Ounces to Grams
Now that we understand the meaning of a 1/10 troy ounce, how can we calculate its weight in grams? Since a troy ounce equals 31.1034768 grams exactly, the math is straightforward:
1) Start with 1 troy ounce = 31.1034768 grams
2) Divide by 10 to get 1/10 value: 31.1034768 / 10 = 3.11034768
Therefore, a 1/10 troy ounce equals 3.11034768 grams.
To summarize:
– 1 troy ounce = 31.1034768 grams
– 1/10 troy ounce = 3.11034768 grams
So if you need to convert tenths of a troy ounce to grams, simply divide the number of tenths by 10 and multiply by 31.1034768.
For example:
– 5/10 troy ounces x (31.1034768 / 10) = 15.5517384 grams
This provides an easy method to convert fractions of a troy ounce to gram weights for precious metals pricing and measurement.
Comparing 1/10 Oz to Other Common Weights
To better understand the size of a 1/10 troy ounce, it’s helpful to visualize it compared to other metric and imperial units:
– 1/10 troy oz = 3.11034768 grams
– 3.11034768 grams = 0.10966 Troy oz
– 0.10966 Troy oz = 0.12055 Avoirdupois oz
– 0.12055 Avoirdupois oz = 3.434105447 grams
Some other equivalent weights:
– 3.11034768 grams = 0.109543584 oz
– 0.109543584 oz = 3.11034768 grams
In imperial units:
– 1/10 troy oz = 0.0321507466 lb
– 0.0321507466 lb = 1/10 troy oz
So in summary, a 1/10 troy oz represents a tiny amount of weight, equaling just over 3 grams or about 0.11 avoirdupois ounces. But despite its small size, 1/10 oz remains a popular and practical fractional size for investing in gold, silver, and platinum bullion.
Pricing Metals in 1/10 Troy Ounces
The main application of 1/10 troy ounces today is for pricing and selling precious metal investments and collectibles. Small bullion coins, bars, and rounds are often sized in tenths of a troy ounce. Their value is determined by the current market price of the raw precious metal content.
For example, a 1/10 oz gold American Eagle coin will be priced based on 1/10 troy oz of pure gold at the current gold spot price:
If gold is $2000 per troy oz, then 1/10 oz of gold would be:
– Gold spot price / 10 = Price per 1/10 oz
– $2000 / 10 = $200
So with gold at $2000/oz, a 1/10 oz gold coin would sell for around $200. The purity and overall demand for the specific coin issues will also impact the final sales price.
This demonstrates the math behind pricing and buying popular fractional bullion products sized in 1/10 troy ounces. The same principle applies to silver, platinum, and palladium bullion priced to their current metals spot prices per troy ounce.
Popular 1/10 Troy Ounce Bullion Coins
There are a variety of bullion coins issued worldwide that contain a 1/10 troy ounce of pure gold, silver, or other metals. Here are some of the most popular fractional ounce coins:
Gold
– American Gold Eagle: United States
– Gold Maple Leaf: Canada
– Gold Philharmonic: Austria
Silver
– American Silver Eagle: United States
– Silver Maple Leaf: Canada
– Silver Britannia: United Kingdom
Platinum
– American Platinum Eagle: United States
– Platinum Maple Leaf: Canada
Palladium
– Canadian Palladium Maple Leaf: Canada
These major government mint bullion coins are trusted worldwide, containing guaranteed amounts of the precious metals stated on each coin. The 1/10 oz size provides an affordable entry point for small investors and collectors interested in owning iconic gold, silver, platinum, and palladium coins.
Uses of 1/10 Oz Bullion Coins
Here are some of the common uses for 1/10 oz bullion coins and bars:
– Affordable precious metals investment
– Hedge against inflation
– Portfolio diversification
– Saving in a tangible asset
– Collectible numismatic value
– Gifts and inheritance
– Special occasions like birthdays and holidays
– Graduation or milestone gifts
– Unforgettable souvenirs from travels
– Display piece in collections
In summary, 1/10 oz bullion products open up the benefits of precious metals ownership to average investors. They provide a smart portable investment, commemorate special occasions, and make meaningful keepsakes for a lifetime.
Advantages of Investing in 1/10 oz Bullion
Here are some of the unique advantages of buying precious metals in 1/10 troy ounce sizes versus larger coins and bars:
– Great entry-level price point
– Lower upfront investment
– Easy to mail/ship/transport
– Fungible and divisible
– Practical barter size if ever needed
– Fun collectible opportunity
– Can slowly accumulate more over time
Overall, the small fractional size makes 1/10 oz bullion accessible and flexible for beginners investing in precious metals. An investor can diversify into several different fractional coins to enjoy a fun pursuit that directly hedges against inflating fiat currencies.
Where to Buy 1/10 oz Bullion Coins and Bars
1/10 oz bullion products are produced and sold worldwide by government mints, private mints, and precious metal dealers. Here are some recommended reputable sources to buy from:
– Directly from government mints like the U.S. Mint
– Established major retailers like JM Bullion, APMEX, Money Metals Exchange
– Local coin shops or bullion dealers in your area
– Safe online ordering for home delivery
– Auction sites like eBay from highly-rated sellers
Be sure to research the dealer and check ratings, reviews, certifications, and return policies when buying online. Only purchase from trusted industry sources. Beware unrealistically low prices which may signal a scam. With a reputable seller, 1/10 oz bullion represents a safe and affordable entry point into the precious metals market.
Storing and Protecting 1/10 oz Bullion
Since fractional 1/10 oz coins and bars have investment value far above their face value, proper storage and protection is important for preservation:
– Store in protective plastic capsules or sleeves
– Place in protective hard cases or boxes
– Consider a safe deposit box for larger collections
– Use a home safe or lockbox anchored securely
– Separate and diversify storage locations
– Never clean or polish to avoid damage
With proper care, 1/10 oz bullion coins can remain in pristine condition for many decades, or even centuries. Future numismatic value far exceeds the metal content, so careful storage is recommended. Handle with care to avoid loss or damage.
Selling and Redeeming 1/10 oz Bullion
When the time comes someday to sell or redeem 1/10 oz bullion holdings, there are several options:
– Sell back to reputable precious metal dealers
– List for sale on auction sites like eBay
– Arrange sale to local coin shop or jewelry store
– Sell directly to other bullion investors
– Trade online or in-person for other assets
– Redeem some from government mints
Reputable precious metals dealers can often make competitive offers for buying back 1/10 oz coins and bars. Compare payouts from multiple dealers when selling. Factor in premiums paid originally too. And don’t forget about capital gains taxes on any investment gains.
Conclusion
A 1/10 troy ounce provides a practical fractional size for investing in and trading precious metals. Pricing and value are determined relative to the full spot price per troy ounce. Smaller tenths represent an affordable entry point to start an investment and collection in gold, silver, platinum, or palladium coins. With sound storage and care, 1/10 oz bullion can reward investors with financial value and memorable keepsakes for years to come.
