What is the current price of silver per ounce today?
Silver traded at $31.52 per ounce as of 9 a.m. ET. That represents a decrease of 0.47% over the past 24 hours. Year to date, silver is up 31.75%.
On the last day, it has reached a low of $31.41 and a high of $32.30.
Silver spot price
Silver’s spot price is the price at which the precious metal can be bought or sold right now. That’s different from futures contracts, where you secure silver for delivery at a later date.
XAG/USD represents silver’s spot price in U.S. dollars. The price in euros is XAG/EUR. For British pounds, it’s XAG/GBP. The market is active 24/7, so prices are constantly in flux.
Silver price chart
See the chart below for how silver spot prices have changed over the past year. The data is updated at 9 a.m. ET and doesn’t have intraday lows or highs.
As of 9 a.m., silver is up 31.75% since the beginning of the year. The 52-week high reached $32.71 on Sep. 26, 2024, and the 52-week low dropped to $20.69 on Oct. 4, 2023.
The spot price of silver represents the current market rate at which silver can be exchanged and immediately delivered. Similar to gold, silver prices can be provided in troy ounces, grams and kilograms. Notably, a troy ounce, the standard unit for quoting silver prices, is slightly heavier than a standard ounce, with one troy ounce equaling 31.103 grams or 1.097 ounces.
The worldwide silver spot price calculation is a complex process, influenced by several factors and majorly impacted by futures contracts rather than physical silver trading.
Precious metals prices
Silver is one of four main precious metals investors can trade via physical bullion, exchange-traded products or futures contracts. Gold, palladium, and platinum spot prices are also updated 24/7 in various currencies.
Gold/silver ratio
The gold/silver ratio is the price of gold per ounce divided by the price of silver per ounce. Today, it’s 83.83.
The gold/silver ratio is significant because it is a tool for comparing the relative values of these two precious metals over time. This ratio helps investors and traders understand how the value of gold and silver fluctuates compared to each other.
The high ratio suggests that gold is more expensive than silver, indicating a market preference for gold as a haven, which can mean economic uncertainty. Conversely, a lower ratio implies that silver is gaining value or that gold is becoming less expensive.
This ratio can also indicate potential buying opportunities. For instance, if the ratio is historically high, some investors might see it as a cue to buy silver, expecting it to revert to a long-term average.
The gold/silver ratio is also used to gauge economic health. Shifts in the ratio reflect changes in market sentiment and economic conditions.
History of silver prices
Silver prices peaked in January 1980 at $49.45 per troy ounce. They hit a low of $3.56 per troy ounce in February 1993.
Silver’s spot price has fluctuated over the years. Variables like supply and demand, geopolitical events, currency strength, economic data, and changes in investment trends impact silver prices.
1970 – 2005
Silver was under $10 per ounce in the mid-1970s. It reached nearly $50 in 1980. But silver fell back under $10 by the late 1980s.
2006 – 2024
Silver prices cleared $10 again in 2006.
The Great Recession drove prices higher. In March 2008, spot prices reached about $20 per ounce. But another sharp decline followed. Silver dropped back below $10 by October 2008.
Another major jump occurred a few years later. In April 2011, silver traded at over $45 per ounce.
Silver future prices
Key global exchanges facilitate nearly 24-hour silver trading. They exist in cities such as New York, Chicago, Hong Kong, London and Zurich. The COMEX, a branch of the Chicago Mercantile Exchange, uses futures contracts to project silver prices. In this way, it plays an essential role in setting the silver spot price.
Futures contracts set delivery dates and delivery prices. They’re a popular way to speculate on the prices of commodities, including precious metals. That popularity means trading futures on exchanges is relatively easy.
Silver exchange-traded products
Silver exchange-traded products have a variety of structures. These include closed-end funds and grantor trusts.
ETPs typically operate by holding silver bullion in audited storage locations. They trade like stocks on exchanges. Investors buy shares that represent fractional ownership of the stored silver. Note that management fees and other expenses can impact returns.
How to invest in silver
Investing in silver can be approached in several ways, each with unique benefits and considerations:
- Bullion. This direct method involves owning physical silver bars and coins. But investors must consider storage and insurance costs, dealer markups, and the bid-ask spread when buying and selling.
- ETPs. These are available in most brokerage accounts and offer a more accessible alternative. But investors face ongoing annual expense ratios and possible tracking errors relative to the spot price of silver. It’s important to note that redeeming shares for physical silver is only sometimes guaranteed.
- Futures.Futures allow for speculation or hedging against price movements. Trading these derivatives is done on margin, making it highly volatile and potentially unpredictable. It requires a thorough understanding of the market and its risks.
Is silver a good investment?
Whether silver is a good investment depends on an investor’s objectives, risk tolerance and the specific time considered. For some, silver can be a way to diversify a portfolio that already includes stocks and bonds.
But investors must be aware of several factors: the limitations in accessing silver in different forms, its high volatility, and the potential for extended negative or flat return periods.
It’s also important to understand that investments in silver can experience multiyear troughs and may not always align with broader market trends or inflationary pressures.
Frequently asked questions (FAQs)
Gold is rarer than silver.
A precious metal’s rarity can be understood through its mass fraction. This indicates how much of the metal can be found per billion kilograms of Earth’s crust. Gold is present at four parts per billion, compared to 75 parts per billion for silver.
Silver’s effectiveness as a hedge against inflation is mixed and varies by time and location. Some studies indicate that silver does not correlate well with consumer price movements in the U.S. But there has been some correlation in the U.K. market over the long run.
But for a more reliable hedge against inflation, investors might consider other commodities like energy and agricultural products. These often have a more direct and consistent relationship with inflationary trends.
Read More: Silver is trading at $31.52