silver price guide
WHAT MAKES SILVER A PRECIOUS METAL?
This is a classification of certain metals that are considered rare and have a higher economic value compared to other metals. There are five main precious metals that are traded openly on various exchanges, with silver being the second largest market in this particular sector. Silver is sometimes referred to as a currency metal due to its historical use as a currency and is considered a store of value; However, silver has a significant industrial component, accounting for nearly half of its markets, as it is less reactive, highly conductive and highly malleable.
WHAT IS SPOT SILVER?
The spot price of silver refers to the price of silver for immediate delivery. Gold coin transactions are almost always valued based on the spot exchange rate. The silver spot market operates nearly 24 hours a day, as there is almost always somewhere in the world receiving orders for silver transactions. Most commercial activities take place in New York, London, Sydney, Hong Kong, Tokyo and Zurich. Whenever precious metals traders are active in any of these cities, we will announce on our website with the message "Spot Market is Open". For the highs and lows, we show the lowest bid and highest bid for the day.
SILVER PRICE - FUTURE MARKET
A silver futures market is one of a number of commodity futures contracts entered into by agreeing to buy or sell silver at a specified price on a specified future date. Silver futures are used as a way for silver producers and market makers to hedge their products against market fluctuations and as a way for speculators to make money from the same movements in the market.
A precious metals futures contract is a legally binding agreement to deliver a metal in the future at an agreed price. Contracts are standardized by a futures exchange in terms of quantity, quality, time and place of delivery. Only the price is variable.
Hedgers use these contracts to manage their price risk in an early purchase or sale of the physical metal. They also offer speculators the opportunity to participate in the markets by depositing the necessary margin.
Two different positions can be taken: a long position (buy) is an obligation to receive the physical metal, while a short position (sell) is an obligation to deliver. Silver contracts are rarely settled in physical metal. The vast majority of futures contracts settle before the delivery date. This happens, for example, when an investor with a long position sells that position before the delivery notice.
SPOT PRICE OF SILVER VS FUTURE PRICE OF SILVER
Typically, there is a difference between the spot price of silver and the futures price. The futures price, which we also show on this page, is used for futures contracts and represents the price to be paid on the future delivery date for the silver. In normal markets, the futures price of silver is higher than the spot price. The difference is determined by the number of days to contract delivery date, prevailing interest rates and the strength of market demand for immediate physical delivery. The difference between the spot price and the futures price, expressed as an annual percentage, is called the "forward rate".
CHANGE (CHANGE IN THE PRICE OF SILVER SINCE THE PREVIOUS CLOSING)
This is the change in the price of the metal since the previous close, which is not necessarily the day before. From Monday to Friday from 18:00. m. New York time, through midnight, the previous close of the current day applies. Here's why: The New York weekday silver market break is 60 minutes from 5 pm to 5 pm. m., New York time, until 6 pm. m. Kitco uses the last quoted price at 5:00 pm. m. as the closing price for that day. The change is always the difference between the current rate and the rate at 17:00. Example: Silver last traded at $17.00 at 5pm on January 17th. If it's January 17th at 6:30 pm and the price is $17.02, we'll show a +0.02 change. If it's January 18th at 5pm. m. and silver is trading at $17.50, so we would be showing a +0.50 change at that point.
SILVER FUTURES CHANGE (PREVIOUS NEXT CHANGE)
This is the change in the price of the metal from the price at the end of the previous trading session. Currently, the closing time from Monday to Friday is 2 pm. m, eastern time.
30 DAY CHANGEOVER (30 DAY CHANGEOVER)
This is the change in the price of the metal 30 days ago compared to the previous close.
1 YEAR CHANGE (1 YEAR CHANGE)
This is the change in the price of the metal from a year ago compared to the last close.
HOW IS THE LIVE SPOT SILVER PRICE CALCULATED?
Each precious metals market has a corresponding reference price that is determined daily. These benchmarks are mainly used for commercial contracts and agreements with manufacturers. These benchmarks are calculated in part from trading activity in the spot market.
The spot price is determined from trading activity on decentralized over-the-counter (OTC) markets. An OTC is not a formal exchange and prices are negotiated directly between participants, with most transactions being done electronically. Although not regulated, financial institutions play an important role by acting as market makers and offering bid and ask prices in the spot market.
I HEARD SILVER IS TRADED 24/7 - IS THIS TRUE? IS THERE AN OPENING AND CLOSING?
In fact, silver is traded 23 hours a day, from Sunday to Friday. Most OTC markets overlap; Between 17:00 m. and 6:00 p.m. It's a time slot of one hour. and 6 p.m. Eastern Time, when there is no active market. However, as Spot is traded on OTC markets, despite this one-hour close, there are no official opening or closing prices.
For larger transactions, most gold traders use a reference price that is determined at certain times during the trading day.
WHAT IS THE OFFER PRICE FOR SILVER?
The bid price is the highest price anyone is willing to pay for an ounce of silver.
WHAT IS THE ASKING PRICE FOR SILVER?
The asking price is the lowest price someone is willing to sell an ounce of silver for.
WHAT DOES THE SPREAD MEAN FOR THE PRICE OF AN ounce OF SILVER TODAY?
The spread is the price difference between the bid and ask price. Silver is a very liquid market, so traders in these markets can expect a very tight spread; however, other precious metals may have wider spreads, reflecting a less liquid market.
IS THERE A SILVER REFERENCE?
As there is no official opening or closing price for gold or silver, market participants rely on reference prices set by different organizations at different times of the day. These reference points are also known as fixtures.
The London Bullion Market Association (LBMA) is the main organization responsible for maintaining benchmarks for all precious metals. The LBMA Silver Price, LBMA Gold Price, and LBMA PGM Price are the universally accepted benchmarks in the precious metals space. Kitco.com also offers a range of gold and silver reference prices.
The reference price for silver is determined daily in an electronic auction between banks participating in the LBMA administered by the ICE Reference Administration.
Like the Gold Fix before it, the London Silver Fix has been a global benchmark that has been used for over 100 years, but was revised in August 2014. The widely used LBMA Silver Price Auction is operated by the CME and managed by Thomson Reuters. The price is set in US Dollars every day at 12:00 noon. m., London time, and changed the auction process from physical to electronic.
There are six banks participating in the LBMA silver price, namely China Construction Bank, HSBC Bank USA NA, JPMorgan Chase Bank, Mitsui & Co Precious Metals Inc., The Bank of Nova Scotia - Scotia Mocatta, The Toronto Dominion Bank and UBS AG .
DER KITCO SILBERFIX
The Kitco.com 10:00 Silver Fix consists of four daily fixed prices: the 10:00 New York Silver Fix, the 10:00 UK Silver Fix, the 10:00 Mumbai Silver Fix and the 10:00 Hong Kong Silver Fix. These time zones were chosen because they represent the largest trading centers for precious metals in the world.
The 10 o'clock silver adjustment is determined by a unique Kitco algorithm that calculates the average spot price between the wholesale silver market bid and ask prices quoted by internationally recognized gold dealers. The Kitco Silver Fix can be found at:http://www.kitco.com/fix/
ARE SILVER ONZA PRICES THE SAME WORLDWIDE?
A troy ounce of silver is the same anywhere in the world and for larger transactions the price is usually quoted in US Dollars as this is the most active market; However, the value of an ounce of silver can be higher or lower depending on the value of the local currency. Traditionally, coins stronger than the US dollar have a lower silver price, while coins lower than the US dollar have a higher price. While silver is primarily priced in ounces per US dollar, OTC markets in other countries also offer other weight options.
WHAT IS OZ, GRAMS, KILO, TOLA, (ETC.)?
Silver and most precious metals are quoted in troy ounces; However, countries that have adopted the metric system report the price of gold in grams, kilograms and tons.
Grams = 0.032151 troy ounces
Kg = 32,150747 Feinunzen
tons = 32,150,7466 troy ounces
Tael = 1,203370 Feinunzen
Tola = 0.374878 Feinunze
Although not as popular as the kilogram and gram, the tael is a measure of weight in China. The tola is a measure of weight in South Asia.
WHAT IS THE DIFFERENCE BETWEEN ONE ONA AND THREE OUNCES WHEN I SEE A SILVER LETTER?
The troy ounce is used specifically for weighing and pricing precious metals, and its use dates back to the Roman Empire when coins were valued by weight. The process was transferred to the British Empire, where a pound sterling was worth a troy pound of silver. The United States Mint introduced the troy ounce system in 1828.
A troy ounce is slightly heavier than an imperial ounce by about 10%. An imperial ounce is 28.35 grams, while a troy ounce is 31.1 grams.
WHY IS THE PRICE OF SILVER MOSTLY IN DOLLARS?
While you can buy silver in any currency in the world, it's important to realize that ultimately everything is based on the value of the US dollar. As the US is the largest economy in the world and one of the most stable, the dollar has become a reserve currency, meaning that it is held in significant amounts by other governments and major institutions. Reserve currencies are used to process international transactions. The US dollar has been the world's dominant reserve currency since the beginning of the 20th century.
WHY ARE SILVER AND GOLD PRICES SO DIFFERENT?
The reason gold and silver prices fluctuate so much comes down to one simple fact: rarity. The lower the supply of a metal, the higher the price. Therefore, gold prices tend to be much higher than silver prices, as it is much more difficult to obtain. The reason silver is in much greater supply is because it is an easier metal to extract and is often mined as a by-product of mining other metals. The average occurrence of gold in igneous rock is 0.004 parts per million. Silver appears at a rate of 0.07 parts per million.
WHAT IS THE PRICE OF THE GOLD AND SILVER RATIO?
The gold to silver ratio tells you how many ounces of silver are needed to buy one ounce of gold. If the ratio is 60 to 1, that means it takes 60 ounces of silver to buy an ounce of gold.
Investors use the ratio to determine whether a metal is undervalued or overvalued, and therefore whether it is a good time to buy or sell a particular metal.
When the ratio is high, silver is generally believed to be the preferred metal. When the ratio is low, the opposite is true and generally indicates that it is a good time to buy gold.
Silver mining refers to the process of extracting silver from the ground. Silver is usually extracted from the ore by smelting or chemical leaching. The main sources of silver are copper, cupronickel, gold, lead and lead-zinc ores mined in Canada, Mexico, Poland, Peru, Bolivia, Australia and the United States. According to the Silver Institute, growth in silver mining production Global silver mining slowed to 2% in 2015, reaching a record 886.7 million ounces, while primary silver mine production increased by 5% and represented 30% of the global silver mining supply. The general slowdown in mining production last year is expected to continue.
WHAT IS LBMA?
The London Bullion Market Association (LBMA), headquartered in London, is an international trade association representing the precious metals markets including gold, silver, platinum and palladium. It's not an exchange. Its current members include 140 companies made up of refiners, manufacturers, traders, etc. The LBMA is responsible for setting reference prices for gold and silver, as well as PGMs. For the refining industry, the LBMA is also responsible for publishing the Good Delivery List, widely recognized as a reference for the quality of gold and silver bars in the world.
WHAT IS SLV?
The iShares Silver Trust, commonly known as SLV, is the largest silver-backed exchange-traded fund in the world. Managed by BlackRock, it is valued at over $5.9 billion as of May 26, with over 10 tons of silver in deposit. The ETF was first launched in April 2006.
DO INTEREST RATES CHANGE THE PRICE OF SILVER?
Although silver is considered a monetary metal due to its large industrial component, the metal does not have a significant direct correlation with interest rates. However, silver is highly correlated with gold, which is also correlated with interest rates, so there are indirect implications for silver. Simply put, interest rates represent the cost of borrowing. The lower the interest rate, the cheaper it is to borrow money in local currency. Interest rates affect economic growth. Interest rates are an important tool for central bankers when making monetary policy decisions. A central bank can lower interest rates to stimulate the economy, allowing more people to borrow money, which increases investment and consumption. Low interest rates weaken a country's currency and depress bond yields, both positive factors for silver and gold prices.
WAS THE QUANTITATIVE RANGE?
Quantitative easing is a monetary policy tool used by central bankers in response to the 2008 financial crisis. The tool was first used in Japan, but became a widely used term (pun intended QE) after the former chairman of the Federal Reserve, Ben Bernanke, introduced the concept to the US in response to the collapse of the large investment bank Lehman Brothers. Bernanke bought bad debts from other large commercial banks to avoid defaults while increasing the money supply. Since then, other central banks have implemented this tool, including the European Central Bank and the Bank of Japan.
QE poses risks, including rising inflation if too much money is created to buy assets, or it could fail if money given to commercial banks by central bankers does not reach businesses or the average consumer.
WHAT IS A SAFE PORT?
Silver and gold have been used as currency and as a store of value since ancient Egypt. Historically, precious metals, despite their volatility, have performed well in times of financial turmoil or economic weakness. To help stabilize an economy, a central bank relaxes monetary policy or the government takes fiscal initiatives. These actions can affect a country's currency and ultimately increase domestic demand for physical precious metals. Investors buy gold and silver when they lose confidence in their currency.
USO INDUSTRIAL DA PRATA
Although silver is sometimes associated with gold as a currency metal, it has a significant industrial component. Half of the physical demand for silver comes from the industrial market. Most of the industrial demand comes from the solar energy sector, as silver is an important component of photovoltaic cells.
WHAT ARE THE MOST POPULAR SILVER COINS?
Each major mint produces its own silver coins and is extremely popular with investors looking to hold the physical metal. Although only state mints can produce silver dollars, there are a variety of private mints that produce similar products called silver coins. Here is a list of the most popular silver coins available.
- American Eagle 1 ounce coin
- canadian maple leaf
- Vienna Philharmonic Silver Coins
- British silver Britannia coin
- australian silver kangaroo