Summary: If you’re going to invest in gold, then you need to know as much about precious metals as possible. That includes its weight measurements of it. In this article, you’ll learn what a gram is, how much an ounce of gold is, and how many grams it consists of. You’ll learn about troy ounces, how to buy gold and even purity levels. Keep reading for more fun facts about the most popular precious metal invested today.
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Grams In Gold And More
The world is divided in how we use measurements, and while most of the world uses metric measurements, the USA still uses imperial measurements, including inches and ounces. Gold and other precious metals are measured in ounces, and people planning to invest in gold can get confused by the terms used when weighing this precious metal. No worries, we are here to clarify things for you, so read on as we discuss ounces, troy ounces, and grams.
What is a Gram?
A gram is a metric unit for mass, equal to the one-thousandth of a kilogram, defined in 1795 as the absolute weight of a volume of pure water in one cubic centimeter at 4°C.
While people who are used to the metric system don’t have a problem grasping this concept, people used to the imperial measurement system can’t easily understand this.
Generally speaking, a gram is about the weight of a paperclip. When precious metals weigh less than one ounce, they are precisely measured in grams, as grams offer more precise measurements and are much simpler to calculate.
What is an Ounce?
An ounce can be a measurement for mass, weight, or volume and derives from Roman times, and when it comes to measuring mass in ounces, the avoirdupois ounce is used.
The measurement derives from a time when standardization of measurements was necessary to measure goods when trading, and it was defined as the one-sixteenth of a pound or the weight of 437.5 grains. In grams, the avoirdupois ounce is 28.35 grams.
The ounce is used in the US and many English-speaking countries worldwide, primarily for measuring packaged goods, foodstuff, and the like.
What is a Troy Ounce?
A troy ounce is defined as the weight of 480 grains, and it started to be used in the 15th century when merchants in the French city of Troyes needed to standardize the weight used to measure gold and other precious metals. The troy ounce spread as a measurement for gold in England, later in the USA, and most of the world, and is still used to this day, and it is 31.1014 grams.
All US and most European gold dealers use troy ounces to measure precious metals; the gold brick bars traded by central banks (the bars seen in movies) are 400 troy ounce gold bars, but most often, smaller quantities are used, like 100 troy ounce bars or less.
How Is Gold Measured in Various Cultures?
Different countries around the world use different measurements when it comes to gold. Gold dealers and traders in the USA and Great Britain use troy ounces for measuring gold, but this is not the case with the rest of the world.
If you wish to trade gold in Singapore, India, and Pakistan, you will meet with tola, their preferred measurement system. One tola is 11.66 grams, and 3/8 troy ounce of gold.
In Thailand, gold is measured in baht, which amounts to 15.244 grams.
People in China, Japan, and Hong Kong use tael or tahil, a similar measurement system with different definitions. In China, a tael is 50 grams or 1.607 troy ounces; in Japan, a tael is 37.5 grams; and in Hong Kong, a tael is 37.799 grams.
Gold Purity and Different Types of Gold
When it comes to gold, weight is not the only critical measurement, as, for bullion gold, purity is also essential. Gold bullion is defined as gold that is 99.999% pure, and anything lower than this purity has a lower gram count, which is why the term karat was invented.
The karat defines gold purity by indicating the ratio of gold within the gold item. The purest 99.999% gold is defined as 24-karat gold; a 23-karat item has 96.5% gold, and so on.
Regarding investment gold, the preferred gold purity is 24-karat gold. However, when it comes to using gold for other applications like jewelry, it is necessary to blend gold with other metals to give it better qualities. Pure gold is soft and malleable, and it is better to alloy it with copper, silver, or palladium to improve its hardness, color, and other desirable properties.
How and When to Buy Gold?
Now that we’ve covered the topic of measuring gold, now let us talk about how to invest in gold safely:
- Purchase physical gold – you may be tempted to invest in gold futures, but this is not as safe as having physical gold. You should aim to purchase gold bullion which you can later trade if needed.
- Purchase pure gold – gold is valued by its weight and purity, and for the best investment, you should buy gold bullion with 99.999% purity, or 24-karat gold. Ensure the gold bullion you purchase comes with adequate documentation, including the item’s weight and the manufacturer.
- Purchase manageable sizes – tend to invest in smaller gold bars, as these are more easily managed and easy to sell if necessary. You can easily sell ten 1-troy-ounce bars than one 100-troy-ounce bar. Also, you can purchase coins, as these have a higher value and are collector pieces. Still, these may be tricky to sell, so if you are only after gold investments, you should prefer gold bullion bars.
- Use reputable gold dealers – always check the reputation of the gold dealer you are thinking of working with, as this proves the dealer has good services and authentic products. Also, you should compare the prices from different sellers and check for any accompanying fees like certification fees, shipping fees, and something extra.
To Wrap Up: Gold Can Be a Wise Investment Commodity
Gold is famous for its properties, conceived value, and scarcity, and it has been the most coveted metal since the early days of civilization. Always ensure the gold dealer provides you with a precise quantity of gold and you know the unit of measurement of gold you are buying and pure gold, as this is the way to get the most gold for your money. If you have more inquiries on gold, measurements, or the best gold prices, browse our blog for answers.
See Also: How Much Does A Gold Bar Weigh?
