Internationally, gold jewellery and ornaments are traded in ounces, specifically the troy ounce. In India, gold jewellery is generally measured in grams or traditional units, such as tola and pavan.
Understanding the gold ounce meaning and how global trade units translate into regional metrics can help you plan and invest better. As domestic gold rates fluctuate based on global market benchmarks, import duties and currency exchange rates, converting international spot prices per troy ounce allows buyers and borrowers to calculate the exact asset value.
This way, you can also assess the accurate value of your jewellery when applying for a gold loan.
What is an Ounce in Gold?
When discussing precious metals such as gold, an ounce typically refers to a troy ounce, rather than the standard ounce used to measure everyday items.
One troy ounce is slightly heavier than one standard ounce and equals approximately 31.10 grams. When you see an international gold price quoted as a certain amount per ounce, it generally means the price of one troy ounce of gold.
This distinction is important when converting 1 ounce of gold into grams or comparing international gold prices with the gold price per gram in India.
What is 1 Ounce in Grams?
1 ounce of gold = 31.1035 grams
This conversion refers to one troy ounce, which is the standard unit used in international markets. For practical calculations, you can round to 31.10 grams, but a more precise conversion is 31.1035 grams.
For example, if you have 2 troy ounces of gold, the weight in grams will be:
2 × 31.1035 = 62.207 grams
This conversion only applies to a troy ounce. A standard ounce, used for everyday goods, is approximately 28.35 grams.
Troy Ounce vs Standard Ounce
Troy and standard ounces weigh different amounts and differ in a few other ways, as highlighted below.
| Feature | Troy Ounce | Standard Ounce |
|---|---|---|
| Weight in grams | 31.1035 grams | 28.3495 grams |
| Primary use | Gold, silver and other precious metals | Everyday goods and general weight measurement |
| Abbreviation | Oz t or ozt | oz |
| Used for international gold pricing | Yes | No |
| Pounds system | 12 troy ounces = 1 troy pound | 16 standard ounces = 1 standard pound |
Gold Ounce Conversion Table
The troy ounce can also be converted into traditional Indian gold-weight units. The exact use and local definition of traditional units can vary. However, you can use the following figures as approximate conversions.
| Gold Weight | Grams | Tola | Pavan | Bhori |
|---|---|---|---|---|
| 1 Troy Ounce | 31.1035 | 2.667 | 2.489 | 2.667 |
Why India Uses Grams, Not Ounces
Gold is commonly quoted and sold in grams in the Indian retail market. Jewellery prices, gold rates and gold loan calculations generally use the weight of eligible gold in grams. Using grams also makes it easier for customers to compare prices across different jewellery items.
International markets, meanwhile, generally quote precious metal prices using troy ounces. Therefore, someone comparing an international gold price with an Indian gold rate may need to convert the troy ounce price into a per-gram rate first.
For instance, if the international gold price is quoted for one troy ounce, dividing that price by 31.1035 gives the approximate Indian price per gram. This does not account for currency conversion, taxes, duties, premiums or local market conditions.
How Gold Weight Affects Your Gold Loan Amount
More eligible gold weight, measured in grams or converted from another unit, generally means higher loan eligibility, subject to purity, applicable LTV limits and other lender conditions.
For a gold loan, the lender considers more than the jewellery's gross weight. Other factors, such as purity and the eligible gold content in the piece, also matter in determining the final loan value.
At Manappuram Finance, we calculate your gold value based on purity, weight and market price to give you the best gold loan per gram rate. We also offer convenient online and offline applications for gold loans so you can apply from anywhere.