How Much Is 1 Troy Ounce of Silver Worth Today?

Are you curious about the current value of your silver holdings? Understanding “How Much Is 1 Troy Ounce Of Silver Worth” is essential for investors, collectors, and anyone interested in precious metals. HOW.EDU.VN provides you with the latest silver prices and expert insights to help you make informed decisions. Discover the factors influencing silver’s value, including spot price fluctuations, market trends, and investment strategies. Stay ahead in the silver market with our comprehensive guide.

1. Understanding the Silver Spot Price

What exactly is the spot price of silver? The silver spot price refers to the current price at which one troy ounce of .999 fine silver can be bought or sold for immediate delivery. It represents the price for silver that is available “on the spot.” This price is constantly fluctuating based on market conditions, supply and demand, and various economic factors. The spot price serves as a benchmark for pricing various silver products, including coins, bars, and rounds.

1.1. How Is the Silver Spot Price Determined?

The spot price of silver is determined by several factors, primarily through trading on major exchanges such as the COMEX (Commodity Exchange) in New York. Here’s a breakdown:

Futures Contracts: The most influential factor is the near-term silver futures contract price. This is the agreement to buy or sell silver at a specific price and date in the future. The contract with the highest trading volume, often the front month contract, is closely watched.
Global Exchanges: Silver is traded virtually 24 hours a day across various exchanges, including those in New York, Chicago, London, Zurich, and Hong Kong.
Supply and Demand: The basic economic principle of supply and demand plays a crucial role. High demand and limited supply will drive the price up, while low demand and abundant supply will push it down.
Market Sentiment: Investor sentiment, influenced by economic news, geopolitical events, and inflation expectations, can significantly impact silver prices.
Currency Fluctuations: Since silver is often priced in U.S. dollars (USD), fluctuations in the dollar’s value can affect the price of silver. A weaker dollar can make silver more attractive to international buyers, potentially increasing demand and price.

1.2. Real-Time Fluctuations in Silver Prices

Silver prices are not static; they change constantly due to the dynamic nature of the market.

Frequency of Changes: The spot price of silver can change every few seconds during market hours. This continuous fluctuation reflects the ongoing interaction of buyers and sellers.
Market Hours: Spot silver prices update Sunday through Friday, from 6 PM EST to 5:15 PM EST each day. There is a 45-minute down period from 5:15 PM EST to 6 PM EST each weekday, and from 5:15 PM EST on Friday until 6 PM EST on Sunday.
Volatility: Silver markets can be volatile, experiencing periods of rapid price changes. This volatility can be influenced by news events, economic data releases, and shifts in investor sentiment.

1.3. Currency Quotations for Silver Spot Price

Silver is typically quoted in U.S. dollars (USD), serving as the standard reference currency.

Global Conversion: Markets worldwide can easily convert the USD spot price to their local currency using current exchange rates. This allows investors and traders in different countries to understand the value of silver in their own currency.
Impact of Exchange Rates: Changes in exchange rates can influence the attractiveness of silver to international buyers. For example, if the U.S. dollar weakens against another currency, silver may become more affordable for buyers using that currency, potentially increasing demand.

2. Factors Influencing Silver’s Value

What factors can influence the value of silver? Understanding these factors is essential for making informed decisions about buying, selling, or holding silver.

2.1. Economic Factors

Economic conditions play a significant role in determining the value of silver.

Inflation: Silver is often seen as a hedge against inflation. As the purchasing power of fiat currencies decreases, investors may turn to silver to preserve wealth, driving up demand and prices. According to a study by the World Gold Council, precious metals like silver tend to perform well during periods of high inflation.
Interest Rates: Interest rates can impact the attractiveness of silver relative to other investments. Low interest rates can make silver more appealing because the opportunity cost of holding a non-yielding asset is lower.
Economic Growth: Economic growth can increase demand for silver in industrial applications, as it is used in electronics, solar panels, and other products. Higher demand can lead to higher prices.

2.2. Geopolitical Factors

Geopolitical events can introduce uncertainty and affect silver prices.

Political Instability: Political instability in countries that produce or consume significant amounts of silver can disrupt supply chains and increase price volatility.
Trade Wars: Trade disputes and tariffs can impact the flow of silver and related products, affecting supply, demand, and prices.
Global Crises: Events such as pandemics, wars, or major economic crises can drive investors towards safe-haven assets like silver, increasing demand and prices.

2.3. Industrial Demand

Industrial applications are a major source of demand for silver.

Electronics: Silver is used in a wide range of electronic devices due to its high conductivity. Increased production of electronics drives up demand for silver.
Solar Panels: Silver is a key component in solar panels. The growth of the solar energy industry has significantly increased the demand for silver.
Medical Applications: Silver has antimicrobial properties and is used in medical devices and treatments.
Photography: Although less prevalent than in the past, silver is still used in some photographic processes.

2.4. Investment Demand

Investment demand is another critical factor in silver pricing.

Bullion: Investors purchase silver bullion in the form of coins, bars, and rounds as a store of value and a hedge against economic uncertainty.
ETFs and Funds: Silver-backed exchange-traded funds (ETFs) and mutual funds provide investors with exposure to silver without directly owning the physical metal. Changes in ETF holdings can reflect investor sentiment and impact silver prices.
Futures Contracts: Speculators and institutional investors use silver futures contracts to bet on the future price of silver, which can contribute to price volatility.

2.5. Supply Factors

The supply of silver, from mining and recycling, also influences its price.

Mining Production: The amount of silver mined each year affects the overall supply. Disruptions in mining operations, due to strikes, natural disasters, or political instability, can reduce supply and increase prices.
Recycling: Silver is often recovered from recycled electronics and industrial products. The amount of silver recycled can supplement the supply from mining operations.
Government Stockpiles: Government sales or releases of silver stockpiles can increase supply and potentially lower prices.

3. Investing in Silver: Physical vs. Paper Silver

What are the different ways to invest in silver?

3.1. Physical Silver Bullion

Investing in physical silver involves owning the metal directly in the form of coins, bars, or rounds.

Coins: Silver coins are often government-minted and can have collectible value in addition to their silver content. Popular examples include American Silver Eagles, Canadian Silver Maple Leafs, and Austrian Silver Philharmonics.
Bars: Silver bars are typically produced by private mints and come in various sizes, from 1 ounce to 100 ounces or larger. Bars often have lower premiums over the spot price compared to coins.
Rounds: Silver rounds are similar to coins but are produced by private mints and do not have a face value. They are often a cost-effective way to invest in silver.

3.2. Paper Silver

Paper silver refers to investment products that track the price of silver without the investor taking physical possession of the metal.

ETFs (Exchange-Traded Funds): Silver ETFs are investment funds that hold physical silver and issue shares that trade on stock exchanges. Examples include the iShares Silver Trust (SLV).
Futures Contracts: Silver futures contracts are agreements to buy or sell silver at a specified price and date in the future. These contracts are traded on exchanges like the COMEX.
Certificates: Silver certificates represent ownership of a specified amount of silver held by a bank or financial institution.

3.3. Pros and Cons of Each

Each form of silver investment has its own advantages and disadvantages.

Investment Type	Pros	Cons
Physical Silver	Tangible asset, no counterparty risk, potential for collectible value, good hedge against economic uncertainty.	Higher premiums over spot price, storage costs, potential for theft, difficulty in selling quickly.
Paper Silver	Lower premiums over spot price, easy to buy and sell, convenient for diversification, can be held in brokerage accounts.	Counterparty risk (risk that the issuer may default), may not track spot price perfectly, no physical possession of silver.
Futures Contracts	Potential for high returns through leverage, can be used to hedge other investments, liquid market.	High risk due to leverage, requires understanding of futures markets, potential for significant losses.
Certificates	Represents ownership of physical silver, can be easier to store and manage than physical bullion.	Counterparty risk, may be difficult to redeem for physical silver, fees for storage and management.

3.4. Factors to Consider When Choosing

When deciding how to invest in silver, consider your investment goals, risk tolerance, and time horizon.

Investment Goals: Are you looking for long-term wealth preservation, short-term gains, or diversification?
Risk Tolerance: How comfortable are you with price volatility and the potential for losses?
Time Horizon: How long do you plan to hold your silver investment?
Storage and Security: If investing in physical silver, consider storage options and security measures.
Costs: Factor in premiums over spot price, storage fees, transaction costs, and management fees.

4. Understanding Premiums and Dealer Markups

Why can’t you buy silver at the spot price? The spot price of silver represents the price of raw silver bullion, but it does not include the costs associated with producing, distributing, and selling silver products to retail investors.

4.1. What Is a Dealer Premium?

The dealer premium is the amount added to the spot price when buying silver from a dealer. This premium covers the dealer’s costs and profit margin.

Definition: The dealer premium represents the difference between the spot price of silver and the price at which a dealer will sell silver to a customer.
Dealer’s Gross Profit: The difference between the price a dealer pays to buy silver (the bid price) and the price at which they sell silver (the ask price) represents the dealer’s gross profit.
Business Sustainability: Dealer premiums are essential for dealers to cover their operational costs and make a profit, ensuring they can continue to provide services to investors.

4.2. Factors Affecting Dealer Premiums

Several factors can influence the size of dealer premiums.

Product Type: Coins, especially those with numismatic value or government backing, often have higher premiums than generic bars or rounds.
Minting and Production Costs: The cost of minting coins or producing bars affects the premium. Intricately designed or limited-edition products may have higher production costs and, therefore, higher premiums.
Supply and Demand: High demand for a particular product can drive up premiums, while low demand can lead to lower premiums.
Dealer Competition: Competition among dealers can influence premiums. Dealers may lower premiums to attract customers.
Market Conditions: During times of economic uncertainty or high demand for precious metals, premiums may increase due to increased demand and limited supply.

4.3. How to Minimize Premiums

While you can’t avoid premiums entirely, there are strategies to minimize them.

Compare Prices: Shop around and compare prices from different dealers to find the lowest premiums.
Buy in Bulk: Premiums are often lower when buying larger quantities of silver.
Consider Generic Products: Generic bars and rounds typically have lower premiums than government-minted coins.
Take Advantage of Specials: Dealers sometimes offer special deals or promotions with reduced premiums.
Be Aware of Payment Methods: Some dealers offer discounts for paying with cash or bank wire, which can help lower the overall cost. At JM Bullion, a 4% discount is offered on all “cash payments” which include personal checks, money orders, and cashier’s checks.

4.4. Understanding Bid and Ask Prices

The bid and ask prices are important concepts in the silver market.

Bid Price: The bid price is the highest price a buyer is willing to pay for silver at a given time. If you want to sell silver, you will receive the bid price.
Ask Price: The ask price is the lowest price a seller is willing to accept for silver at a given time. If you want to buy silver, you will pay the ask price.
Bid-Ask Spread: The difference between the bid and ask prices is called the bid-ask spread. A smaller bid-ask spread indicates a more liquid market with lower transaction costs.
Liquidity Indicator: The bid-ask spread 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.

5. Silver Futures and Paper Silver

What are silver futures contracts and other paper silver products?

5.1. Silver Futures Contracts

Silver futures contracts are agreements to buy or sell a specific amount of silver at a predetermined price and date in the future.

Definition: A silver futures contract is an agreement between a buyer and a seller to exchange a fixed amount of silver at a fixed price on a specific future date.
Example: A buyer agrees to purchase 5,000 troy ounces of silver at $20 per troy ounce two months from now. If the price of silver increases to $22 per troy ounce during those two months, the buyer profits $10,000.
Hedging: Bullion dealers use futures contracts to hedge their physical silver positions, protecting themselves from price fluctuations.
Exchanges: Metals futures contracts trade on various exchanges worldwide, including the COMEX and NYMEX.

5.2. COMEX and NYMEX

The COMEX and NYMEX are key exchanges for trading precious metals futures.

COMEX: The COMEX (Commodity Exchange) is the primary exchange for trading gold and silver futures contracts. Standard silver contracts are for 5,000 troy ounces of silver.
NYMEX: The NYMEX (New York Mercantile Exchange) is the primary exchange for trading platinum and palladium futures contracts.

5.3. Leveraged or Paper Silver Products

Leveraged or paper silver products allow investors to gain exposure to silver without owning the physical metal.

ETFs: Silver-backed ETFs, such as the iShares Silver Trust (SLV), allow investors to buy shares that represent ownership of physical silver held in trust.
Certificates: Silver certificates represent ownership of a specified amount of silver held by a bank or financial institution.

5.4. Differences in Pricing

The price of paper silver products may not always match the spot silver price.

Factors Affecting Price: The price of a silver-based ETF may be based on multiple factors, including the spot price, supply and demand for the ETF shares, and management fees.
Tracking Discrepancies: Leveraged products and other paper silver investments may not perfectly track the spot price due to market inefficiencies and other factors.

6. Factors That Can Change Silver Prices

What are some of the factors that can cause silver prices to change?

6.1. Supply and Demand

The fundamental economic principle of supply and demand is a primary driver of silver prices.

Increased Demand: Higher demand for silver, driven by industrial applications, investment, or other factors, can lead to higher prices.
Decreased Supply: Lower supply due to mining disruptions, reduced recycling, or other factors can also increase prices.
Mining Operations: If the price of silver drops too low, mining companies may elect to slow down operations and simply mine less silver.

6.2. Currency Fluctuations

Changes in currency values, particularly the U.S. dollar, can impact silver prices.

USD Influence: Since silver is often priced in USD, a weaker dollar can make silver more attractive to international buyers, potentially increasing demand and price.
Global Markets: World markets are in a constant state of price discovery, adapting to fluctuations in currency values.

6.3. Inflation Fears

Silver is often considered a hedge against inflation, and concerns about rising inflation can drive up demand and prices.

Hedge Against Inflation: As the purchasing power of fiat currencies decreases, investors may turn to silver to preserve wealth.

6.4. Geopolitical Risks

Geopolitical events can introduce uncertainty and affect silver prices.

Political Instability: Political instability, trade wars, and global crises can drive investors towards safe-haven assets like silver, increasing demand and prices.

6.5. Asset Allocations

Investment decisions by large institutional investors can impact silver prices.

Institutional Investment: Changes in asset allocations by pension funds, hedge funds, and other large investors can influence demand for silver.

6.6. Market Volatility

Silver prices can be volatile, and short-term price fluctuations are common.

Short-Term Volatility: While silver prices can be volatile at times, there are also times when prices are relatively quiet. Many customers buying physical silver are buying it as a long-term investment and understand that short-term price fluctuations may be volatile.

7. The Gold/Silver Ratio

What is the gold/silver ratio, and how is it used?

7.1. Definition and Calculation

The gold/silver ratio is a formula for determining how many ounces of silver it takes to buy one ounce of gold.

Formula: Divide the price of gold by the price of silver to calculate the ratio.
Example: If gold is priced at $2,000 per ounce and silver is priced at $25 per ounce, the gold/silver ratio is 80.

7.2. Interpretation

The gold/silver ratio can be used to assess the relative value of silver and gold.

High Ratio: A high ratio suggests that silver may be undervalued compared to gold.
Low Ratio: A low ratio suggests that silver may be overvalued compared to gold.

7.3. Investment Strategy

Investors may use the gold/silver ratio to identify potential buying opportunities.

Buying Opportunity: Investors may see a high gold/silver ratio as an opportunity to buy silver, expecting its price to rise relative to gold.

8. Taxation of Physical Silver

Is physical silver taxed?

8.1. Sales Tax

In the USA, certain states have sales tax on silver bullion products.

State Regulations: Depending on which state you are located in, and where you purchase your silver, you may be liable to pay sales or use tax on the purchase. For more information on individual states, reference a local buying guide.

8.2. Capital Gains Tax

When you sell silver for a profit, you may be subject to capital gains tax.

Taxable Event: Selling silver at a higher price than you purchased it is a taxable event.
Tax Rates: Capital gains tax rates vary depending on your income and the holding period of the silver.

9. Practical Considerations for Silver Investors

9.1. Troy Ounce Measurements

How many grams are in a troy ounce of silver?

Grams in a Troy Ounce: Each troy ounce contains about 31.1034768 grams of silver, which is slightly higher than a standard ounce which has only 28 grams.

How many troy ounces are in a kilogram of silver?

Troy Ounces in a Kilogram: There are 32.151 troy ounces in one kilogram of silver.

9.2. Payment Methods and Pricing

Why is the price different if I pay by bank wire than if I pay by credit card?

Dealer Costs: Precious metals dealers have numerous costs and often work in a very competitive environment with slim margins. Because of this, they offer a discount to buyers who “pay cash” as they do not then have to pay the fees associated with credit card use.
Cash Discounts: At JM Bullion, a 4% discount is offered on all “cash payments” which include personal checks, money orders, and cashier’s checks. The 4% credit/debit card surcharge helps dealers cover the costs associated with merchant processing fees.

9.3. Factors Affecting Coin Prices

If spot silver is at $20 per ounce, why are some coins selling for over double that amount or more?

Coin Value: 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.
Collector’s Value: 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.

9.4. Maximizing Silver Ounces

I’m a new silver investor and just want to acquire as many ounces of metal as I can. What types of silver bullion products will get me the most ounces of silver for my U.S. dollars?

Cost-Effective Products: 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.
Recommended Products: 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.

9.5. Face Value of Silver Coins

Does the face value of a silver coin affect its worth?

Legal Tender: Silver coins generally carry a small face value making them legal tender in their respective country of origin.
Precious Metal Content: 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 typically their precious metal content value is far greater than their legal tender face value.

9.6. Cost Differences in Silver Bars

Do silver bars of the same type have a cost difference related to their size?

Per-Ounce Basis: Silver bars will typically get less expensive on a per-ounce basis as the bar gets bigger.
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.

10. Buying and Selling Silver

10.1. Dealer Markups and Shipping Costs

Does the spot silver price include dealer markup or shipping costs?

Additional Costs: 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.

10.2. Premium Variability

Are dealer premiums a fixed amount or percentage over the spot price of silver?

Variable Premiums: 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.

10.3. Potential for Profit

Am I going to lose money because the dealer will buy from me at spot or under the spot silver price?

Market Dynamics: 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.
Profitability: 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. Should the spot silver price rise, however, 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.

10.4. Local vs. Online Dealers

Can I get a similar price going to a local coin shop that I can buying silver online? They would both simply markup the spot silver price correct?

Cost of Business: 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.
Online Advantages: 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.

10.5. Locking in Prices

If silver prices are constantly changing, how can I lock in a price when making a purchase?

Dealer Procedures: Different dealers have different procedures when it comes to locking in a price.
JM Bullion’s Policy: At JM Bullion, when you add products to your Cart, the product prices are “fluid” and will continue to change until you advance to Checkout. Once you advance to Checkout, your prices are locked in and displayed on the right side of the checkout form. These prices are final, and are held for 10 minutes while you complete the checkout process. If you take longer than 10 minutes to complete the checkout process, you will have the option to approve the new, updated prices to finalize your order.

11. Additional Considerations

11.1. Market Manipulation

Is the silver market price manipulated?

Ongoing Debate: 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.

11.2. Where to Buy Silver

Where can I buy physical silver?

Online Retailers: JM Bullion offers a wide variety of quality physical silver bullion products for purchase 24 hours a day, 7 days a week at competitive prices.
Please note that JM Bullion is the only major retailer in the industry currently 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.

11.3. Minimum Investment

How much money do I need to buy silver?

Low Entry Barrier: You can get started with as little as $100 (our minimum purchase). We offer a wide range of 1 oz and even fractional ounce silver products that start as low as $3 per piece. Many investors prefer silver to gold given that you don’t need a huge amount of capital to start investing in silver bullion.

11.4. Silver in IRAs

Can I put silver in my IRA?

Self-Directed IRAs: We work with a number of silver IRA custodians who provide “self directed IRAs”, which allow the investor to purchase physical silver bullion and receive the IRA tax benefits on the investment.

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13. Frequently Asked Questions (FAQ)

13.1. General Questions

Q: How is the spot silver price calculated?

A: The spot price of silver is calculated using the near term futures contract price on exchanges like COMEX.

Q: How often do spot silver prices change?

A: The spot price of silver changes every few seconds during market hours.

Q: What currency are spot silver prices quoted in?

A: The silver spot price is usually quoted in U.S. dollars (USD).

Q: What exactly is the spot silver price referring to?

A: The spot silver price is quoting the price for 1 troy ounce of .999 fine silver.

Q: Are spot silver prices the same all over the world?

A: Yes, the price of silver is the same all over the world, with conversions to local currency.

Q: Why can’t I buy silver at the spot silver price?

A: Silver is sold by dealers with a premium to the current spot price to cover costs and ensure profitability.

Q: What is the difference between bid and ask prices?

A: 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.

13.2. Silver Futures and Paper Silver

Q: What are silver futures contracts?

A: Silver futures contracts are an agreement for a buyer to purchase a fixed amount of silver from a seller, at a fixed price, at a specific time in the future.

Q: What is the COMEX?

A: The COMEX is the primary exchange for trading gold and silver futures contracts.

Q: What is the NYMEX?

A: The NYMEX is the primary exchange for trading platinum and palladium futures contracts.

Q: Could I buy silver by just buying a futures contract?

A: One could buy a silver futures contract and take delivery. This is not what normally happens, however. Taking delivery on a silver futures contract involves additional fees and costs and one is limited in the product type. In addition, the amount of silver is fixed as one regular silver futures contract equates to 5000 ounces of silver.

Q: What about leveraged or paper silver products? Are the prices the same?

A: The spot silver price is the price at which silver may change hands and be exchanged right now in the physical form. The spot silver price should not be confused with say the price of a silver based ETF, where an ETF’s price may be based on multiple factors.

13.3. Silver Price Factors

Q: What are some things that can cause silver prices to change?

A: Factors may include supply and demand, currency fluctuations, inflation fears, geopolitical risks, and asset allocations.

Q: Do mining companies have any say in the price of silver?

A: Mining companies can influence supply, but the price is ultimately determined by supply and demand.

Q: Why does silver trade around the clock?

A: The demand for silver is constantly changing, and world markets are in a constant state of price discovery.

Q: Is the price of silver too volatile for most investors?

A: While silver prices can be volatile at times, there are also times when prices are relatively quiet.

Q: When looking at silver prices and trying to make a forecast, I have heard people speak of the gold/silver ratio. What exactly is this?

A: The gold/silver ratio is simply a formula for determining how many ounces of silver it takes to buy one ounce of gold.

Q: Someone told me silver prices are trending lower-is this true?

A: Silver has certainly seen some ups and downs in its price over the years.

13.4. Other Silver Price Questions

Q: Is physical silver taxed?

A: In the USA, certain states have sales tax on silver bullion products.

Q: How many grams are in a troy ounce of silver?

A: Each troy ounce contains about 31.1034768 grams of silver.

Q: How many troy ounces are in a kilogram of silver?

A: There are 32.151 troy ounces in one kilogram of silver.

Q: If spot silver is at $20 per ounce, why are some coins selling for over double that amount or more?

A: Silver coins can have value not only for their silver content but also for any collectability or scarcity that they may have.

Q: I’m a new silver investor and just want to acquire as many ounces of metal as I can. What types of silver bullion products will get me the most ounces of silver for my U.S. dollars?

A: 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.

Q: Does the face value of a silver coin affect its worth?

A: Silver coins generally carry a small face value making them legal tender in their respective country of origin.

Q: Do silver bars of the same type have a cost difference related to their size?

A: Silver bars will typically get less expensive on a per-ounce basis as the bar gets bigger.

Q: Does the spot silver price include dealer markup or shipping costs?

A: The spot silver price does not reflect a dealer premium or any associated costs.

Q: Are dealer premiums a fixed amount or percentage over the spot price of silver?

A: 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.

Q: Am I going to lose money because the dealer will buy from me at spot or under the spot silver price?

A: 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.

Q: Can I get a similar price going to a local coin shop that I can buying silver online? They would both simply markup the spot silver price correct?

A: 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.

Q: If silver prices are constantly changing, how can I lock in a price when making a purchase?

A: Different dealers have different procedures when it comes to locking in a price.

Q: Is the silver market price manipulated?

A: Silver price manipulation has been a hot topic of debate for some time.

Q: Where can I buy physical silver?

A: JM Bullion offers a wide variety of quality physical silver bullion products for purchase 24 hours a day, 7 days a week at competitive prices.

Q: How much money do I need to buy silver?

A: You can get started with as little as $100 (our minimum purchase).

Q: Can I put silver in my IRA?

A: Yes. We work with a number of silver IRA custodians who provide “self directed IRAs”, which allow the investor to purchase physical silver bullion and receive the IRA tax benefits on the investment