In our turbulent times, one of the most important indicators of the reliability of the economic state of a country is the aggregate of its gold reserve. When one talks about the value of this yellow metal in one or another currency, one uses a rather strange measure, which has the name troy ounce of gold. In grams the cost of this metal for some reason is not reflected. How did this happen, why is the universal weight unit not used for weighing gold? And how much does a troy ounce weigh in grams?
What is an "ounce"
The concept of an ounce was born in ancient Rome. In those days there were bronze coins in circulation, which were divided into parts. The twelfth part of the bronze ancient Roman coin was called "ounce." In the modern equivalent, its weight was a little more than 27 grams.
Over time, an ounce was used not only as a monetary unit. Since in Rome standards were strictly observed when coin minting, it became convenient to weigh small amounts of various substances by 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 demise of the Roman Empire, there was no single standard for the minting of bronze coins. So, and the weight of an ounce in different areas was noticeably different.
How did the "troy ounce"
Neither to the ancient Three, nor to the number three the word "troika" has nothing to do with. This term begins in the 5th century AD, in the fields of medieval France. In those days, gradually, natural taxes and taxes were replaced by cash. To sell their products, the peasants took her to the fairs. One of the most famous fairs of that 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 managers and most influential traders of the fair greatly valued their reputation and insisted on the introduction of a universal weight measurement system. There was much debate about the weight of the troy ounce. In the end, the decision was taken as the basis for a new measure of weights to take the French livre, which included a troy pound of silver.
One troy pound of silver is divided into twelve troy ounces. This measure of the division of the money supply existed even in ancient Rome and successfully adapted to the realities and needs of the current time.
After the conquest of Champagne by the French in 1304, King Louis 10 introduced excessive taxes on traders and fair organizers. Trade quickly declined and the fairs practically ceased to exist. But the troy ounce by that time had already gained popularity and was actively used by traders of different countries.
The new measure of weight was recognized as convenient and quickly won recognition. In troy ounces it was convenient to measure any expensive substance of small weight. Especially the new measure was liked by goldsmiths. The price of gold at that time determined the entire economic policy of the state, as was the exchange and sale of this metal, so the need for a new accurate measuring unit was universal. In addition to jewelers and treasurers, the troy ounce fell in love with pharmacists and sellers of various condiments. Both medicines and spicy impurities were very expensive at that time, so an exact weight equivalent was needed to sell them.
Troy ounce seven hundred years ago and today
Depending on the weight of the coinage of the French lira, the troy ounce changed its weight. These discrepancies caused long disputes between buyers and sellers, because each of them relied on the weight of a particular coin. Gradually, the equivalent of the Troy ounce is not a French one, but an English one-pound coin. And after the introduction of the metric system of units, it became possible to determine what is equal to the troy ounce of gold in grams. At the moment, the weight of such an ounce is clearly fixed and equals 31.1034768 grams. Much less often the unit of measure used, the troy pound in grams is equal to twelve Troy functions. Simple multiplication gives the weight of one troy pound. It is equal to 373.2417 grams.
The cost of a troy ounce of gold
Over the 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 the troy ounce is equal to. This state institution was always ready to buy one troy ounce of gold at a price of 3 pounds 17 shillings and 9 pennies. Sale of one tr. ounces of gold was carried out at a rate of 3 pounds and ten and a half shillings. Before the First World War, this system did not need any changes.
The World War has made its own corrections. Gold miners of South Africa refused to sell yellow metal at such fixed prices. They turned to the powerful Rothschild clan for help. The latter decided to break the system of world gold transactions. September 12, 1919, the world's first fixing for gold took place.
Fixing of Rothschild
The word "fixing" comes from the English language and denotes the price for one or another product at any given time. This establishes 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 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 a troy ounce of gold in grams. Fixing is a rather powerful tool for interference in the internal politics of any state.
The greatest influence on the regulation of fluctuations in the value of the troy ounce is provided by such companies: HSBC; Societe Generale; Capital, Scotia Mocatta; Deuche Bank; Barclays.
The troy ounce of gold in grams is regarded in the three most influential currencies of the world: American dollars, euros and pounds sterling. Most of all, 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 translate a troy ounce into grams
The conversion of a troy ounce into grams is quite simple. It should be remembered that one troy ounce is 31.1035 grams. Accordingly, for translation, multiply this value by the required number of ounces.