The silver spot price 24 hours is a crucial metric for investors, but what exactly does it mean? The silver spot price is the current market price of silver, updated in real-time every 24 hours.
It's influenced by global supply and demand, with fluctuations in the price reflecting changes in these factors. The spot price is also affected by the London Bullion Market Association's (LBMA) daily price fixing.
The LBMA sets the silver price at 10:30 am London time every day, using a process of auction-style pricing. This is a key moment in the global silver market, with prices settling for the day.
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Understanding the Silver Spot Price
The silver spot price is the cost of one troy ounce of silver at that particular second, and it's constantly changing during worldwide trading hours.
This price is not the actual price of a .999 fine ounce of physical silver bullion, as silver bullion dealers add a slight premium to the spot price to ensure profitability.
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The silver spot price is updated continuously to reflect the current rate of silver on the market, as well as the dealer's premium, making it essential to check current prices before making any investment decisions.
The London Silver Market is the largest silver market in the world, with the largest trading volumes, and it's central to silver price discovery for the international silver price.
The silver trading unit in the London Silver Market is one troy ounce of 99.9% silver purity, quoted in US dollars per troy ounce.
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What Is the Silver Spot Price?
The silver spot price is the cost of one troy ounce of silver at a particular second, but it's not the exact price of physical silver bullion.
Silver prices change quickly during worldwide trading hours, often from minute to minute and certainly from hour to hour.
The spot price of silver is used as a reference point for buying and selling silver bullion, and it's essential to know the current spot price to make informed investment decisions.
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Silver bullion dealers add a slight premium to the spot price to ensure profitability, so the actual price of physical silver bullion is higher than the spot price.
The London Silver Market is the largest silver market in the world, with the largest trading volumes, and it's central to silver price discovery for the international silver price.
The London Silver Market is an over-the-counter market where participants trade with each other on a bilateral basis via spot, forwards, and options contracts.
The silver trading unit in the London Silver Market is one troy ounce of 99.9% silver purity, and silver prices are quoted in US dollars per troy ounce.
Most silver bars stored in the London commercial vaulting network weigh around 1000 troy ounces and have a minimum silver purity of 99.9%.
The LBMA Silver Price is a benchmark silver price established in a daily electronic auction held at 12:00 p.m. London time Monday to Friday.
The LBMA Silver Price is for spot unallocated "loco London" silver, which is a form of synthetic paper silver, and the auction is not for physical silver.
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The resulting silver auction price is expressed in US dollars per troy ounce of silver and is an equilibrium price at which buy and sell orders entered by silver auction participants are balanced within an acceptable tolerance range.
The Bid price for spot silver is a price quote for an immediate purchase of a specified quantity or range of quantities of silver, and the Ask price is a price quote for an immediate sale of a specified quantity or range of quantities of silver.
The spread is the difference between ask and bid quotes and can be expressed in either cents or percentage terms.
Comex
The COMEX futures exchange is a major player in the silver market, hosting the world's most traded silver futures contracts. COMEX silver futures trading takes place almost 24 hours a day, with huge trading volumes.
These contracts are technically physically deliverable but in practice are rarely delivered. One criticism of COMEX precious metals futures trading is that it's almost entirely speculative.
The COMEX Silver Futures contract is for 5000 troy ounces of silver. If physical silver is delivered, it must conform to COMEX silver futures contract rules.
COMEX approved warehouses support very small physical silver inventories, while there are huge Open Interest levels.
For more insights, see: Comex Silver Spot Price
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