What Is the Purity of a Traded Gold Troy Ounce?

Gold Generally

• Gold is a chemical element with the symbol "Au" derived from the Latin term "aurum," meaning shining dawn. It has had many uses throughout history including industrial purposes, coinage, art, jewelry and storing of wealth. It is bright gold in color and does not oxidize in air. It is rare and valuable, as well as being very dense. A cubic meter of gold weighs 19,300 kilograms (nearly 42 pounds).

Pure Gold Bars and troy weight

• A popular way to own gold is through gold bars. Gold bars are cast in one-, five-, 10- and 100-ounce bars generally and are marked with the weight, purity and maker. Gold bars are typically .999 pure gold. One troy pound is 5,760 grains, which is approximately 373.24 grams. Troy weight is a system of measuring mass used for precious metals named after Troys, France. Troy ounces are commonly used to weigh gold.

American Eagle coins

• The most popular way to own a troy ounce of gold is through the American Eagle bullion coins. The U.S. Mint began producing American Eagle bullion coins in 1986, and today they area available in tenth-ounce, quarter-ounce, half-ounce and full ounce sizes. They are advertised as a convenient and cost-effective way to add small amounts of physical gold to a portfolio, and they are 22-karat gold or 91.3 percent pure gold. This alloy creates harder coins that resist acquiring scratches.

South African Krugerrands

• As American Eagles were not produced until 1986, many people own gold in the form of South African Krugerrands. Krugerrands are a South African gold coin first minted in 1967. It was the first widely traded bullion coin and is produced by the South African Mint Co. As the U.S. American Eagle bullion coins, it is 22-karat gold or 91.67 percent pure. A Krugerrand contain a troy ounce of gold.

24 karat Canadian gold Maple Leaf coins

• The most pure coin that contains a troy ounce of gold is the Canadian Gold Maple Leaf. The Canadian Gold Maple Leaf is the official bullion gold coin of Canada and is produced at the Royal Canadian Mint. It is characterized by its .9999 fine purity or 24- karat purity. This results in a rather soft coin, but they are available in smaller gold sizes than American Eagles. One can purchase gold Maple Leaf coins in 1/20 and 1/15 ounce sizes in addition to the sizes in the American Eagle program.