Silver Spot Price FAQ
Silver is a commodity that trades virtually 24 hours per day across many exchanges such as New York, Chicago, London, Zurich and Hong Kong. The most important exchange, however, when it comes to determining the spot silver price is COMEX. The spot price of silver is calculated using the near term futures contract price. By near term, that may mean the front month contract or the nearest contract with the most volume.
The price of silver is constantly changing. The spot price of silver changes every few seconds during market hours. Between domestic and foreign exchanges, spot silver prices update Sunday through Friday, from 6PM EST to 5:15PM EST each day. Spot prices remain static during that 45 minute down period from 5:15PM EST to 6PM EST each weekday, as well as from 5:15PM EST on Friday until 6PM EST on Sunday. Although silver and other markets may have periods in which they are very quiet, they also have periods in which prices change very rapidly.
The silver spot price is usually quoted in U.S. dollars (USD). However, markets all over the world can take the spot silver price in USD and simply convert it to local currency.
The spot silver price is quoting the price for 1 troy ounce of .999 fine silver.
Yes, the price of silver is the same all over the world. Exchanges and markets all over the world can take the current spot silver price in USD and convert that price to local currency.
Silver is sold by dealers with a premium to the current spot price. When one is looking to sell metals to a dealer, the dealer may offer spot or slightly below the spot price for one’s metals. The dealer premium, as it is often called, represents the price at which a dealer will buy silver and the price at which a dealer will sell silver. The difference between the spread represents the dealer’s gross profit. This is how dealers make profits and stay in business.
The bid price is the maximum offer available for a particular commodity at the present time. The ask price is the minimum asking price available for a particular commodity at the present time. More simply, if you want to buy, you will pay the ask price. If you want to sell, you will receive the bid price. The difference between the two is referred to as the “bid-ask spread”, and often is a reliable indicator of an investment’s liquidity. The smaller the bid-ask spread is, the more liquid a commodity and the less “transaction fees” an investor will incur when getting into and out of investment positions.
Silver Price Factors FAQ
The price of silver is always in flux never sitting stagnant for very long. There are many different factors that can potentially affect silver price fluctuations. These factors may include, but are certainly not limited to: supply and demand, currency fluctuations, inflation fears, geopolitical risks, and asset allocations.
The price of silver is determined by the laws of supply and demand. That being said, if the price of silver drops too low, then mining companies may elect to slow down operations and simply mine less silver. The fact is, if the price of silver gets too low, then these companies may mine silver but operate at a loss due to mining costs. Should silver fall to very low price, then these mining companies may scale back operations in an attempt to wait for higher prices or slow the supply of their silver reserves to the market, thus helping to bring the forces of supply and demand back into balance
The demand for silver is constantly changing. World markets are in a constant state of price discovery. Many other commodities and investment products also trade around the clock.
The gold/silver ratio is simply a formula for determining how many ounces of silver it takes to buy one ounce of gold. Simply take the price of gold and divide by the price of silver — that is the ratio. Investors may use the ratio to try and determine the relative value of silver or gold and see if a potential buying opportunity may exist.
Other Silver Price FAQ
Silver is measured in troy ounces. Each troy ounce contains about 31.1034768 grams of silver, which is slightly higher than a standard ounce which has only 28 grams.
There are 32.151 troy ounces in one kilogram of silver.
The spot price of silver may be only one factor to determine the value of a silver coin. Silver coins can have value not only for their silver content but also for any collectability or scarcity that they may have. While regular silver bullion coins will usually be not too far from the current spot price, a collector’s numismatic silver coin may sell for the spot price many times over. This is once again the laws of supply and demand at work.
If you are looking to acquire as much silver as possible, then you may want to try and buy silver products as close to the spot price as possible. You will want to focus your buying efforts on the most cost-efficient bullion bars, coins, and rounds available. Silver rounds offer a great selection and relatively cost-efficient way to start stacking. In addition, products like silver bars of varying sizes and coins, such as American Silver Eagles and Canadian Silver Maple Leafs, may potentially be a good choice too.
Silver coins generally carry a small face value making them legal tender in their respective country of origin. That said, legal tender silver coins are generally priced based on their silver content. Although silver coins may be legal tender, they are not typically used in day to day transactions as their precious metal content value is usually far greater than their legal tender face value.
Silver bars will typically get less expensive on a per-ounce basis as the bar gets bigger. For example, a one ounce Sunshine Mint silver bar may sell for $22.68 while a 10 ounce Sunshine Mint silver bar may sell for $219.60. If you do the math, you’ll see that on an ounce for ounce basis the 10 ounce bar is a much better deal at only $21.96 per ounce compared to the one ounce bar at $22.68 per ounce.
The spot silver price does not reflect a dealer premium or any associated costs. Dealers will use the spot price to determine pricing by taking the spot price and adding their markup. These markups can range from less than one dollar to thousands of dollars over the spot price depending on the product and scarcity.
While dealers will use a fixed amount over spot, such as $.99 over spot for ABC coin, dealer premiums can and do change based on market conditions and product. There is no fixed percentage markup that is set in stone.
While losing money is always a possibility with any type of investment, just because there is a dealer spread does not necessarily mean one will lose money on their silver holdings. For example, if one buys a silver round at 75¢ over the spot silver price, and one wanted to sell it back immediately, then yes he or she would likely lose money. In addition, should silver prices fall with all other factors being equal, he or she will lose money. On the other hand, should the spot silver price rise, it may rise more than enough for the purchaser to make a profit over and above what they originally paid for their bullion product. Most buyers of physical silver bullion buy their investments for the long-term and are not concerned with short-term day-to-day price fluctuations.
Dealer markups in precious metals are no different than in any other business. Dealers have a cost of doing business that they must take into account, and then they must have some type of profit margin in order to stay in business. Brick and mortar store dealers often must charge higher dealer premiums due to the higher cost of doing business. This is why in many cases one can buy precious metals from an online dealer at a lower relative cost.
If silver prices are constantly changing, how can I lock in a price when making a purchase?
Silver price manipulation has been a hot topic of debate for some time. There is plenty of information available online for one to research and try to draw his or her own conclusions.
Right here on our website, of course. Metals.com offers a wide variety of quality physical silver bullion products for purchase 24 hours a day, 7 days a week at the lowest prices in the industry. Browse some of our selection at the links below: Silver Bars Silver Coins Silver Rounds Please note that Metals.com is the only major retailer in the industry offering FREE SHIPPING on all orders to the United States. This allows our customers to keep their transaction fees on silver bullion purchases at an absolute minimum.
What is Gold Spot Price?The spot price of gold is the most common standard used to gauge the going rate for a troy ounce of gold. The price is driven by speculation in the markets, currency values, current events, and many other factors. Gold spot price is used as the basis for most bullion dealers to determine the exact price to charge for a specific coin or bar. These prices are calculated in troy ounces and change every couple of seconds during market hours..
Gold as an InvestmentGold is available for investment in the form of bullion and paper certificates. Physical gold bullion is produced by many private and government mints both in the USA and worldwide. This option is most commonly found in bar, coin, and round form, with a vast amount of sizes available for each.
Gold bars can range anywhere in size from one gram up to 400 ounces, while most coins are found in one ounce and fractional sizes. Like other precious metals, physical gold is regarded by some as a good way to protect themselves against the ongoing devaluation of fiat currencies and from volatile stock markets.
Buying gold certificates is another way to invest in the metal. A gold certificate is basically a piece of paper stating that you own a specified amount of gold stored at an off-site location. This is different from owning bullion unencumbered and outright because you are never actually taking physical ownership of the gold. While some investors enjoy the ease of buying paper gold, some prefer to see and hold their precious metals first-hand.
Gold Spot Price FAQs
When you see the price of gold posted somewhere, such as on a website or a dealer’s page, it will usually be quoted as the spot gold price per troy ounce in U.S. dollars (USD). One can, however, get the price of gold per gram or kilo, as well.
The spot price of gold — or any commodity for that matter — represents the price at which the commodity may be exchanged and delivered upon now. This is in contrast to gold or commodity futures contracts, which specify a price for the commodity for a future delivery date.
Gold is a commodity that is traded all over the world, and as such, it trades across many different exchanges, such as Chicago, New York, Zurich, Hong Kong, and London. The COMEX, formerly part of the New York Mercantile Exchange and now part of the CME Group in Chicago, is the key exchange for determining the spot gold price. The spot gold price is calculated using data from the front month futures contract traded on the COMEX. If the front month contract has little to no volume, then the next delivery month with the most volume will be utilized.
Our up-to-the-minute spot price feed is compiled from the collective data of various reliable sources to ensure our spot prices are always as accurate and current as possible.
Bid prices represent the current maximum offer to buy in the market, and Ask prices represent the current minimum offer to sell in the market. If you are a buyer, you will pay the Ask price, and if you are a seller, you will receive the Bid price. The difference between the two prices is the bid-ask spread, and the tighter the spread, the more liquid the product.
The gold spot price is the prevailing price for an ounce of .999 fine gold that is deliverable right now. The spot price does not take into account dealer or distributor markups or markups by the minting or manufacturing company. Most of our inventory is purchased directly from the mint; those products are priced at the spot price plus a markup for the mint or maker to turn a profit. The dealer then also has to make a profit in order to stay in business. The dealer will take their purchase price, then markup the products further to cover dealer costs and a profit margin. This is why dealers will typically buy from individuals at or below the spot gold price and they will sell above the spot gold price. The spread between their buy and sell prices represents the dealer’s gross profit.
Spot gold prices are quoted as the price of 1 troy ounce of .999 percent fine gold deliverable now. This means you can usually purchase one ounce of gold bullion for right around this price plus the dealer’s premium.
Gold is traded in U.S. dollars (USD) and is therefore quoted in USD. In areas outside of the U.S., the spot gold price is taken in USD and simply converted to local currency.
The price for an ounce of gold is the same all over the globe; otherwise an arbitrage opportunity would exist. The world spot gold price is simply converted into local currencies to give market participants the price for 1 troy ounce of .999 fine gold in their respective local currency.
Gold Price Factors FAQ
Gold is a commodity that can have very rapid price changes during periods of high volatility and can also have very little price movement during quiet periods of low volatility. There are many different things that can potentially affect the price of gold. These issues include but are not limited to: supply and demand, currency fluctuations, inflation risks, geopolitical risks, and asset allocations. Gold is viewed by some as a “safe-haven” asset for it is one of the only assets with virtually no counter-party risks (gold requires no performance by outside entities to retain its value). This is why gold’s value may potentially rise during times of economic instability or geopolitical uncertainty.
Gold can, just like any other commodity, become volatile with rapid price changes and swings. The gold market can also, however, go through extended periods of quiet trading and price activity. Today many financial experts see gold as being in a long-term uptrend and that may potentially be one reason why investors are buying gold. Markets do not usually go straight up or straight down in price, and gold is no exception. While gold can be volatile, gold prices are often no more volatile than the stock market or a particular equity. Large moves have been seen in almost every asset class, and almost all asset classes also exhibit periods in which they simply trade sideways.
Gold is traded all over the globe through all different time zones. In addition, with today’s markets running nearly around the clock, the need for constant price discovery has increased. Gold trades virtually around the clock to allow for banks, financial institutions and retail investors to access the gold market when they choose.
Gold spot prices change every few seconds during market hours and can fluctuate throughout the course of a day based on breaking news, supply and demand, and other macroeconomic factors. The gold spot price is determined by a variety of domestic and foreign exchanges, allowing the gold spot price to consistently update from 6PM EST to 5:15PM EST, Sunday to Friday (markets close from 5:15 PM to 6 PM EST each weekday). The changes in gold prices are due to supply/demand, as well as order flow and other factors.
Other Gold Price FAQ
There are several gold bullion coins that have a face value. That is to say that they are considered good, legal tender in their respective country and could be used to make purchases just like cash. The fact is, however, that these coins are not often used to make purchases. They are worth more for their gold content than their face value. Have you ever seen someone pay for items at the grocery store with a $20 Saint-Gaudens gold coin? Probably not. These coins, and others that carry a legal tender status, derive their value primarily from their bullion content and collectability or scarcity in the market.
Gold products, especially gold coins, are priced based on gold content and their collectability. The gold content is pretty straightforward. The collectability premium, however, is another animal. Gold coins with the same gold content may have wildly different market values based on such things as when or where they were minted, how many coins of that particular type were minted, what condition the coin is in, and more. Just because a dealer is selling that coin for hundreds over the spot price does not necessarily mean that the dealer is making hundreds of dollars on the coin. The dealer likely paid several hundred dollars over the gold spot price for the coin, as well, and is now looking to sell it with his or her profit margin attached.
Dealers have procedures for locking in a specific price on gold products based on current price levels. These procedures may vary from dealer to dealer. If one is looking to buy gold and lock in a price, one method is for the buyer to lock that price in once he or she reaches their checkout page when making an online purchase. At that time, the investor will typically have a specified amount of time to complete their purchase and lock their price in. The amount of time given may be fairly short, however, such as ten minutes (as is the case with Metals.com). Dealers do this to try and protect themselves from rapidly changing prices.