When it comes to valuing gold and silver, one key aspect to keep in mind is the unit of measure: the troy ounce. This term has been around since the Middle Ages and is the standard used for precious metals. So, when you see gold prices quoted in ounces, they’re actually referring to troy ounces—not your everyday ounces.

If you’re considering converting a unit of measurement back to ounces for the purposes of valuation, then be careful. Ensure you’re using troy ounces rather than regular ounces, as they differ in weight. For example, one troy ounce is approximately 31.1 grams, while a regular ounce is about 28.35 grams.

Converting to regular ounces and then basing your investment value on that could lead to significant misstatements in value, as we have seen many times when auditing funds holding these investments. This simple miscalculation can have serious implications for the valuation of your investments!