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How much is a Troy Ounce of Gold Worth
As gold prices are always quoted in international markets in the form of troy ounce, it is important to know how much is a troy ounce of gold worth. The spot prices on trade websites are mentioned in troy ounces. If the price is listed in ounces, then you need to multiply it by .91 in order to get the value in troy ounces. Even postal ounces are the same as ounces and need to be multiplied by .91. The investor must be very wary when prices are provided in ounces and not troy ounces. By giving the price in ounces, the perceived value of the gold item is getting boosted by 9%, for those who do not know the difference between troy ounce and an avoirdupois ounce.
Conversion from ounce to troy ounce
Many websites list the price just in dollars without mentioning the unit of measurement. It is to be assumed as troy ounces and hence one needs to find out how much is a troy ounce of gold worth. For instance, when checking the spot price, it may be mentioned that today’s spot price is $691.50 (spot today 5-25-2010), which means that this is the price for a troy ounce of gold on the date mentioned. In order to know how much is a troy ounce worth with respect to pounds; there are 12 troy ounces in one troy pound. One troy ounce also contains 31.103 grams, if the price needs to be converted into grams. Do not confuse yourself between grains and grams. There are roughly 15 grains in one gram. In various online shops, they also mention the prices in pounds and not in troy pounds. For this kind of conversion, one ordinary pound equals 14.58 troy ounces.
Calculating the spot price by conversion
When buying gold from these sites, you need to calculate the price by knowing the spot price in troy ounce and multiplying it with the correct percentage of gold in the sample. When buying scrap gold items, you should take into consideration that the price should be lower than the current spot price of gold. Generally even an old and worn out gold coin has greater value than scrap value.
Gold bars can be bought at comparatively smaller premiums and are a cost-effective method of investment. Trusted brands must be brought and these are available in all sizes from 1 ounce to 10 ounce bars. After ascertaining how much is a troy ounce of gold worth, the investor can purchase these bars from approved dealers. A wide selection of government-backed gold bullion is also available in the form of coins.
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