The troy ounce is the standard weight measure used for determining the value of silver as a trading commodity. The troy ounce of silver measure first came into use in Ancient Rome when traders decided to standardize their weight measures in order to formally establish guidelines for pricing precious metals for sale and purchase.
The exact weight of a troy ounce silver measurement is 31.1034768 grams. This is the measurement which is used for determining a troy ounce regardless of the kind of silver you’re talking about, whether it is silver coins, scrap silver or silver bullion in the form of ingot or bars. Though silver coins may carry a currency value, that value is usually superseded by the price of 1 troy ounce of silver on the commodity market, as a single coin usually weighs just about a troy ounce.
While the standard measurement of the troy ounce remains constant, the value of a troy ounce of silver on the commodity market does fluctuate. Global economic and political factors influence the value of precious metals, silver included, and the price of silver in the trading market changes as a result. Market values list the price of 1 troy ounce silver. Commodity traders must then utilize the current silver price to calculate the value of their silver assets or to determine if the purchase price of a silver trade is a good investment opportunity.
In addition to looking at the current price of 1 troy ounce of silver, investors also look at past values. By analyzing historical data and looking at the influential global events that have lead to ups and downs in silver’s value, investors are able to predict how silver will perform in the market in the future. This in turn allows investors to project when may be the right time to buy more silver or sell off their silver assets.