Making a gold investment in Australia: An insight into the weight and purity measurement of this precious metal

Buying gold or silver coins in Sydney can add diversification and stability to your investment portfolio, especially in the economic climate of market volatility and high inflation. The trend of investing in gold is widely prominent not just in Australia, but in almost every part of the world. The reasons people tend to invest in gold are, however can be pretty diverse. In some cultures, gold is simply ingrained as a form of wealth and saving. On the other hand, a large number of people choose to Invest in gold in Sydney to hedge financial market risks. In many cases, gold investments are driven by fears of inflation, and by investors who want to own assets that are uncorrelated to the stock market. Doing so allows the investors to balance their portfolio.

How Is Gold Valued?

Gold is valued in reference to its weight and purity. When it comes to the purity of this metal, one must know that all that glitters is not necessarily gold. Manufacturers often add other alloys and metals to the mix. Carats are able to measure the proportion of gold relative to other metals. The number of carats is usually stamped on the gold, and tends to range from zero to 24. The higher the carat, the higher would be the proportion of gold in the bullion, in comparison to other metals like palladium, silver or copper. Pure or 100% gold is 24 carats.

Coming to the weight of gold, even though Australia uses the metric system, the weight of gold bullions is still measured in ounces. This ounce measurement however is not an imperial ounce. Rather it is a ‘Troy’ ounce. While an imperial ounce is 28.35 grams, a troy ounce is 31.1 grams. As a result, a troy ounce is heavier by almost 10%. Most bullion dealers today assume that people know the difference between troy and imperial ounces, and hence commonly only show prices ‘per ounce’. Therefore, you must have a proper understanding of the right weight measurements if you are planning to make a Gold investment Sydney.