How is the silver price determined?
Like gold, silver is traded worldwide, mainly in the London market and on futures exchanges such as COMEX. The LBMA Silver Price is set once a day in London as a benchmark.
Supply and demand set the price. Much of the world's silver is mined as a by-product of lead, zinc and copper, so supply hardly reacts to the silver price itself.
What moves the silver price?
Unlike gold, silver is largely an industrial metal. More than half of demand comes from industry, for example electronics, solar panels and medical technology, so the economy and the energy transition have a noticeable effect on the price.
At the same time silver is an investment metal and reacts to interest rates, inflation and the US dollar in a similar way to gold. Because the market is smaller, the silver price usually fluctuates more than the gold price.
Silver price per gram, ounce and kilogram
One troy ounce equals 31.1035 grams. As silver is much cheaper than gold, it is often traded in kilogram bars. The table above shows the current price in all three units.
Silverware and jewellery often have a lower fineness, such as sterling silver (925) with 92.5% pure silver. The fineness table shows the material value per gram.
Buying silver without VAT
In many EU countries silver bars are subject to full VAT. Stored in a free trade zone, no VAT is due. At Spargold all precious metals are stored in a free trade zone, so you buy silver without VAT.
