Ounce and Troy Ounce
The gold investor needs to know the various denominations of gold as well as the various forms of measurement, in order to protect himself from getting cheated. For instance, he must find out how many grams in one ounce of gold, as there is a difference between the common ounce and the troy ounce. The common ounce is also known as the avoirdupois ounce, which we use in our daily lives. However, gold is measured in troy ounce (ozt) which is the troy weight system.
Conversion of measurement
The conversion factor is that there are 31.103 grams in one troy ounce of gold. However, if you wish to calculate how many grams in ounce of gold, then one ounce (oz) has 29.349 grams in it. Hence, there is a difference of 3 grams between a troy ounce and an avoirdupois ounce. If the investor does not know this difference, he can easily get cheated out of the 3 grams. There are many other types of systems of weight, such as the pennyweight, and grams too. You also need to know the purity of the gold, which can contribute towards a change in the price. However, you must know that in the international market, gold is usually quoted in troy ounces.
When buying gold bars, they are generally 999 or 995 parts per thousand of gold, which means that there is a small portion of alloy in the bar. The more the purity of the bar, the more bright they look.
Gold stocks and Gold Accounts
There are other options of investing in gold, without actually holding it physically in the form of bars or coins. You could invest in gold stock, and can still benefit from the fluctuation in the prices. In this case, selling of your gold becomes still easier, with just a phone call or by logging in to your online investment or trading account or brokerage agency.
You can have a gold account through banks where they hold the gold safely in a vault, where you can own the bars specifically allotted to you, or you can own the gold with other people who have invested in that bank. After knowing the necessary details of investment, including how many grams in one ounce of gold, you can invest by buying gold stock from mining companies. If the mining company does well, then you can make profits and you can reap benefits without actually participating in the business. The US stock exchange has many such mining companies that are listed.