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WHAT IS AN OUNCE?

What is an ounce

In this article we want to take a closer look at everyone’s favorites unit of measurement. We are talking, of course, about almighty ounce. First off, the officially recognized symbol of ounce is oz. But, did you know that ounce is used to measure a few different units, including the mass or weight of an object, including its volume. But, primarily when ounce is used in daily life it is to measure the weight of something. In that case, it needs to be said that one ounce (oz) is equal to 28.35 grams. In addition, another factor that is important when discussing any unit of measurement, which here now we are discussing ounce, is the use cases of that unit of measurement. So what is ounce used for most? The answer is rather obvious, isn’t it? Our favorite elements on earth! The precious metals, of course. Ounce is used to measure almost all valuable metals. But clearly they do not have the same meaning. For instance, one ounce of silver is not as valuable as for instance one ounce (oz) of gold. And it is clear why. This is because of the difference in the price of gold and silver. Even though, an ounce of silver does not amount to much, but still once is used frequently as a unit of measurement in this field. Why? The reason is that many of the precious metals that are measured with this unit are actually extremely expensive, which itself comes from multiple reasons; including their scarcity and ease of access, i.e. the mining operation and refinement, if necessary. So, it wouldn’t be practical to use a weightier, so-to-speak, unit for measuring them. But is it practical? The short answer is a resounding yes. Let us elaborate. Take platinum or palladium. One ounce of platinum or its similar sounding cousin, one ounce (oz) of palladium are worth a considerable amount of money. And that is because of the hefty price of these metals themselves. So, in this case it would be quite useful to count them in ounces, rather than other units. This is because even a small amount of these metals can carry a significant amount of value and worth. But implementing ounces in counting silver and gold is also prudent. The reason being some people’s budget. Maybe you don’t want to spend that much money into them. Or maybe you are new into this field of investment and first want to dip your investment foot into the pool of precious metals before jumping in with all your assets. In that case you can purchase one ounce or several ounces of your chosen precious metal, and then make the right decision suited to your needs.

TROY OUNCE

Troy ounce

 

Let’s take it a step further with even a more interesting unit of measurement for precious metals; troy ounce. As was mentioned above, conventional ounce is used to measure a few units, but also it is used in numerous occasions, only one being valuable metals. But troy ounce is a specialized unit of measurement that is used only for precious metals. But what is the different between conventional ounce and troy ounce? To answer this question, let’s have a quick history lesson. Troy ounce finds its roots in a French town roughly with the same name. This town, back in the 16th century, used to be a hub for trading precious metals. One of the most prevalent units that they used to measure the weight of precious metals was equal to the weight of 480 barley grains. As it so happens, these 480 grains have a weight equal to about 31 grams, which is itself astonishingly close to the weight of one conventional ounce, which as we saw was about 28 grams; hence the new name for this unit of measurement became Troy ounce. Now you know exactly what a troy ounce is and exactly how it came to be. You can brandish this knowledge with your trader and investor friends whenever you like. So, in essence, it needs to emphasized that a Troy ounce of gold or a Troy ounce of silver are only slightly different in weight and subsequently price to those of one conventional ounce of these metals. Yet at the same time, a Troy ounce of palladium still carries with itself a substantial amount of worth of value compared to other precious metals. But the point needs to be made in the end that ounces or Troy ounces may be a more popular option for certain metals, such as palladium, platinum, or other extremely precious metals; however, other metals like gold and silver are usually weighed in bars, this is why you have definitely heard the phrase gold bars or silver bars more often than others. Nevertheless, bars also have various sizes and weights. Ordinarily, when you hear the word bar, you think of something weightier than usual. But this is not always true. Since, for instance, Real001 offers even 10 gram bars, 100 gram bars, of course 1 kilogram bars, and even 1 oz bars. This high variety in sizes is to accommodate any budget that users may have allocated to purchasing precious metals. So now you have a much deeper understanding of what an ounce is and what different types of ounce are there. All this information can help you become a more experienced investor in the market of precious metals.

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