The abbreviation “OZT” stands for “Troy Ounce”, a unit of weight that is primarily used to measure precious metals like gold, silver, platinum, and palladium. The troy ounce is distinct from the more commonly used avoirdupois ounce, which is the standard ounce used for most everyday items like food, liquids, and general goods. Let’s dive deeper into the specifics of the troy ounce (ozt):
1. Troy Ounce vs Avoirdupois Ounce:
- Troy Ounce (ozt):
- Weight: 1 troy ounce is equivalent to 31.1035 grams.
- It’s specifically used for measuring precious metals.
- This system has its origins in the ancient Roman monetary system and was used in medieval trade in Europe. It was named after the city of Troyes, France, a major trading city during the Middle Ages.
- Avoirdupois Ounce:
- Weight: 1 avoirdupois ounce is 28.3495 grams.
- This ounce is used in the everyday measurement system, which is common in the United States and many other countries for general goods.
2. Why is the Troy Ounce Used for Precious Metals?:
The troy ounce was historically used in markets where precious metals like gold and silver were traded. The reason for this historical preference has to do with the fact that the troy system was used by the ancient civilizations involved in precious metal trading, and it became the standard in European markets and later worldwide.
- Consistency in Market Transactions: Precious metals are typically traded in bulk (bars, coins, etc.), so the troy ounce ensures a consistent standard when determining the weight and price of these metals across different markets globally.
3. Conversion Between Troy Ounces and Other Units:
- 1 troy ounce (ozt) = 31.1035 grams
- 1 troy ounce (ozt) = 1.097 avoirdupois ounces
- This means that a troy ounce weighs slightly more than an avoirdupois ounce. If you ever need to convert between the two, keep in mind that the troy ounce is about 10% heavier than the avoirdupois ounce.
4. Common Uses of the Troy Ounce:
- Gold: When trading or purchasing gold, its weight is often measured in troy ounces. For example, a gold bar or coin will typically be priced based on its weight in troy ounces.
- Silver, Platinum, and Palladium: These metals, like gold, are measured using troy ounces in the commodities market, in jewelry, or when evaluating investments in these precious metals.
5. Practical Example:
- If you buy a gold coin that is labeled as “1 troy ounce,” you know the coin weighs 31.1035 grams. If it were labeled as “1 ounce” without the “troy” specification, it would weigh about 28.35 grams, which is different.
6. Summary of the Troy Ounce:
- Abbreviation: “ozt” (troy ounce).
- Weight: 1 troy ounce = 31.1035 grams.
- Common Usage: Used primarily for measuring precious metals like gold, silver, platinum, and palladium.
- Origin: Based on the ancient Roman system and named after the city of Troyes, France.
- Difference: It is different from the standard ounce used for most everyday measurements (avoirdupois ounce), which weighs 28.3495 grams.
Understanding the troy ounce is crucial when buying or selling precious metals, as it ensures that the weight measurement is accurate and consistent in the global market.