How is the silver spot price determined?
Silver is one of the most popular naturally occurring precious metals, alongside gold, platinum, iridium, rhodium, and palladium. It is also the most affordable.
Changes in supply and demand play a major role in determining the spot price of silver. Factors like inflation, drops in the value of paper currency, and economic downturns may also affect the cost of silver.
Besides the regular use of silver as a precious metal in jewelry or for other decorative purposes, silver has also been applied in the medical industry for centuries due to its antibacterial properties. Since silver is ductile, malleable, and possesses a high thermal and electrical conductivity, it has also proven to be ideal for numerous industrial uses. All of these uses boost its price.
What is silver spot price? Why should I care about it?
The most widely accepted silver spot price on the live market is by the troy ounce, which our charts update on a live basis. The spot price is not the same as silver bullion prices, because it does not include distribution, manufacturing, and dealing costs. These minor costs make silver bullion slightly more expensive than the spot price. However, some dealers may occasionally run deals allowing customers to buy silver at spot price. Sign up for our newsletter to stay updated on any special offers.
Why should I invest in silver?
Widely cherished and admired for its beauty, silver is a tangible asset that also attracts investors interested in diversifying their portfolios to safeguard against our increasingly unstable economic climate. As the least expensive of all precious metals, silver is an affordable investment option, being instantly convertible into cash worldwide.
Silver Bullion Bars and Coins are thus popular forms of precious metals investment. For your security, always buy your silver bullion from approved refineries only. These include, but are not limited to, the Perth Mint, Engelhard Silver, the US Mint, and the Royal Canadian Mint.
Silver futures contracts, silver certificates, mutual funds, and mining stocks also present opportunities to invest in silver, but these do not allow physical access to the precious metal. Therefore, many investors avoid them and prefer to invest only in physical silver.
Are silver prices the same no matter where I live?
At any given time, the price of silver in the United States is the same as the price of silver in India, China, Australia, the U.K., or any other country in the world. This is to prevent investors from buying silver cheaply in one country and selling it in another for a profit.
What is the gold/silver ratio?
The Gold/Silver ratio can be defined as the number of ounces of silver needed to buy one ounce of gold. This ratio is usually over 60:1, as gold is far more expensive than silver. The purpose of the Gold/Silver ratio is to help investors pick the right time to enter or exit the silver market.
What are bid and ask prices?
The ask price is the lowest price at which a seller is offering to sell silver. The highest price at which a buyer is willing to pay for silver is called the bid price. The difference between the ask price and bid price is defined as the spread.
Why can't I buy at the silver spot price?
The silver spot price is the price of 1 troy ounce of raw silver. The troy ounce silver price listed on most dealers’ products takes into account a nominal dealer fee as well as fabrication and distribution costs alongside the spot price. A collector’s value is added to the price paid by the buyer in case of rare, uncommon, and otherwise valuable items. As a result, you usually cannot buy silver directly at spot price.
Bullion Exchanges may occasionally run deals selling silver at spot price at our discretion. Be sure to subscribe to our newsletter to stay up to date with any special offers.
What is the difference between an ounce and a troy ounce when looking at the silver price chart?
According to medieval French standards and adopted by the United States in the 19th century, precious metals such as silver are not measured by the ounce, which is approximately 28.349 grams, but by the troy ounce which is equivalent to about 31.103 grams.
Why does the price of silver change so often?
Silver can seem volatile when looking at short-term fluctuations, but is very stable when compared to historical prices. The silver price is mainly affected by supply & demand, as well as market speculation. In times of geopolitical crisis and economic instability, silver has been observed to hit record highs. This makes silver a very attractive precious metal for fortifying your investment portfolio.