Silver Spot Prices Explained
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When people refer to the spot price of any metal for that matter, they are referring to the price at which the metal may be exchanged and delivered upon now. In other words, the spot price is the price at which silver is currently trading. Spot prices are often referred to in the silver and gold markets, as well as crude oil and other commodities. Price is in a constant state of discovery and is watched by banks, financial institutions, dealers, and retail investors.
All of the products on our website are priced based on a premium to spot price, and therefore you will notice that prices update every few seconds during market hours. This allows customers to invest based on the most up-to-date market conditions possible.
Silver as an Investment
Since the beginning of the 21st Century, actual metal prices have increased overall, catching the attention of many investors. Many people look to precious metals, such as silver, to help protect themselves against the ongoing devaluation of the U.S. dollar (or other fiat currencies) and volatility in the stock market. Other investors, sometimes referred to as "preppers," believe silver will play a key role in bartering and trade in the event of an economic collapse.
It is available for investment in many different forms, including paper silver and bullion. Physical bullion is most commonly found in coin, round, and bar form with several size options for each. Some investors enjoy owning government-minted coins while others prefer paying lower premiums for bullion bars and rounds. In any case, there are a vast amount of options available in terms of this investment vehicle.
Aside from bullion, "paper silver" is also available in the form of ETFs and certificates. These options are different from physical bullion in the sense that the owner never actually gets to hold the silver in their hands. ETF or certificate is basically a piece of paper that says a bank or financial institution is holding a specified amount of silver for you without you ever seeing that silver
How is the spot price calculated?
It 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.
How often do spot silver prices change?
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 6 PM EST to 5:15 PM EST each day. Spot prices remain static during that 45 minutes down period from 5:15 PM EST to 6 PM EST each weekday, as well as from 5:15 PM EST on Friday until 6 PM 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.
What currency are spot prices quoted in?
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.
What exactly is the spot price referring to?
The spot silver price is quoting the price for 1 troy ounce of .999 fine silver.
Are spot prices the same all over the world?
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 the price in USD to local currency.