In our turbulent times, one of the most important indicators of the reliability of the economic condition of a country is the sum of its gold reserves. When they talk about the value of this yellow metal in one or another currency, they use a rather strange measure, which is called troy ounce of gold. In grams, the cost of this metal for some reason is not reflected. How did it happen, why is the universal weight unit not used for weighing gold? And how much does troy ounce weigh in grams?
What is an ounce?
The concept of an ounce was born in ancient Rome. In those days there were in circulation bronze coins that were divided into pieces. The twelfth of the ancient Roman bronze coin was called "ounce." In modern terms, its weight was just over 27 grams.
Over time, an ounce began to be used not only as a currency. Since the standards for coinage were fairly strictly observed in Rome, it became convenient to weigh small measures of various substances in ounces. The price of gold at all times was high, so an ounce was the best fit for weighing this metal. Over time, this small measure of weights spread throughout Europe.
The modern troy ounce of gold in grams is slightly different from the weight of its ancient namesake. This is due to the fact that after the death of the Roman Empire, there was no single standard for minting bronze coins. This means that the weight of an ounce in different areas was noticeably different.
How did the "troy ounce"
Neither to the ancient Troy, nor to the number three the word "Troy" has nothing to do. This term originates in the 5th century AD, in the fields of medieval France. In those days, natural taxes and taxes were gradually replaced by cash. To sell their products, the peasants took them to fairs. One of the most famous fairs of the time was in Troyes, in the province of Champagne. In the late Middle Ages, the fair in Troyes became very famous both in France and abroad. Traders from all over Europe came here.
Fair in Troyes
The stewards and the most influential traders of the fair cherished their reputation and insisted on the introduction of a universal weight measurement system. There was a lot of controversy about what should be the weight of a troy ounce. In the end, it was decided to use French livre, which included troy pound of silver, as the basis for a new measure of weights.
One troy pound of silver is divided into twelve troy ounces. Such a measure of dividing the money supply existed in ancient Rome and successfully adapted to the realities and needs of the current time.
After the French conquered Champagne in 1304, King Louis 10 imposed excessive taxes on merchants and fair organizers. Trade quickly fell into disrepair and fairs practically ceased to exist. But troy ounce by that time had already gained popularity and was actively used by merchants from different countries.
The new measure of weight was found to be convenient and quickly gained recognition. In troy ounces it was convenient to measure any expensive substance of low weight. Especially the new measure liked the goldsmiths. The price of gold at that time determined the entire economic policy of the state, as well as the exchange and sale of this metal, therefore the need for a new accurate measuring unit was universal. In addition to jewelers and treasurers, troy ounce was loved by pharmacists and sellers of various seasonings. Both medicines and spicy impurities were very expensive at that time, so an exact weight equivalent was necessary for their sale.
Troy ounce seven hundred years ago and today
Depending on the weight of the chasing of French livre, the troy ounce changed as well. These discrepancies caused long disputes between buyers and sellers, because each of them was based on the weight of a particular coin. Gradually, the equivalent of a troy ounce is becoming not a French, but an English coin of one pound. And after the introduction of the metric system of units, it became possible to determine what the troy ounce of gold is in grams. To date, the weight of such an ounce is clearly recorded and equals 31,1034768 grams. A less commonly used unit of measure is troy pound in grams equal to twelve troy functions. Simple multiplication gives the weight of one troy pound. It is equal to 373.2417 grams.
Troy ounce of gold
For many years, thanks to its own Gold Standard, the Bank of England was considered the most stable global financial system. The English bank gave a clear definition of what is equal to troy ounces. This government agency was always ready to buy one troy ounce of gold at a price of 3 pounds 17 shillings and 9 pennies. Selling one tr. An ounce of gold was carried at the rate of 3 pounds and ten and a half shillings. Until the beginning of World War I, this system did not need to be changed.
World War made its own adjustments. South African gold miners refused to sell the yellow metal at such fixed prices. They appealed for help to the powerful Rothschild clan. The latter decided to reverse the system of world gold deals. September 12, 1919 occurred the first in the world fixing for gold.
The word “fixing” comes from English and means the price for a particular product at one time or another. This sets the negotiated price for gold on behalf of the client. This rather simple procedure is carried out twice a day. The current value of gold is based on the following information:
- the number of applications for the purchase of gold;
- the number of applications for the sale of gold.
The percentage of these applications and forms the value of gold at a certain point in time. According to the established procedure, the basic unit of the amount of gold is troy ounce of gold in grams. Fixing is quite a powerful tool for interfering in the internal politics of any state.
The greatest influence on the regulation of fluctuations in the value of troy ounces is exerted by such companies: HSBC; Societe Generale; Capital, Scotia Mocatta; Deuche Bank; Barclays.
The troy ounce of gold in grams is valued in the three most influential currencies of the world: US dollars, euros and pounds sterling. Most of the attention is paid to the price in American money, since it is the US dollar that is the main reserve currency of the world.
How to convert troy ounce to grams
Converting troy ounces to grams is quite simple. It should be remembered that one troy ounce equals 31.1035 grams. Accordingly, for the transfer should be multiplied by the required number of ounces.