If Math makes you queasy, you may want to skip this post and move on to your favorite sports site. There are weights and measures involved in gold and silver that confuse consumers. You can’t blame consumers, this stuff is confusing. And occasionally there is intent by shop owners to deceive. Here is what you need to know. Gold and silver are measured in a unit called a ”Troy Ounce”. This is different from the ounce you may weigh at home on a postal scale or to measure food. That ounce is called the Avoirdupois and is 28.35 grams. The troy ounce is 31.103 grams. This is the magic number that we use to determine how much silver or gold is in an item. Jewelers have a tendency to use pennyweights. It takes 20 pennyweights (dwt) to make a troy ounce.
In other words a pennyweight is 5% of a troy ounce and a gram is 3.2% of an ounce. Why is this important to you? Because someone using pennyweights can offer a higher price for an item, and yet pay less. Did I lose you? If I offer you $20 per gram for 14k gold, and they offer $25 per pennyweight for 14k gold, then here is what you just got offered per ounce: The $20 per gram equals is $1,063 per ounce. The $25 per pennyweight is only $854 per ounce. The $20 per gram is almost 25% more than the $25 per dwt.
This becomes very important when people call around to get pricing on silver or gold. I always recommend people go in person to get prices on items. One reason is because of the confusion between pennyweights and grams. A second reason is that someone can tell you one thing over the phone and actual pay a different amount after they weigh your jewelry.
Okay, so we didn’t really do that much math….maybe next time!