Determined in the world’s economic centres, the ‘spot’ live silver price is the amount FirstGold™ bases its up-to-the-minute silver prices on. Knowing the silver market is one of the first steps in learning how saving silver bullion with FirstGold™ can make for smarter saving.
What is the ‘Spot’ Live Silver Price?
The spot live silver price is the current price for ‘on the spot’, immediate purchases of silver, with payment to the seller ‘on the spot’. The spot live silver price reflects the direction that the market expects that the price of silver will take in the future. When higher future silver prices are expected, the spot silver price will increase. When the price of silver is expected to fall, the spot live silver price will go down. When the price of silver is expected to rise, the spot live silver price will go up. These changes are seen throughout the course of a day, and are very fluid.
Buying Silver Bullion
Unlike paper silver certificates or futures, buying physical silver bullion means that you are buying silver that has been physically minted into a real asset, namely bullion bars or coins. Physical silver bullion carries a standard premium over the live silver price that includes the costs related to supplying silver in its physical form. This is to cover incremental costs associated with silver bullion such as secure storage in our Custodian vault, insurance, management fees, as well as FirstGold’s profit margin so we can keep providing you with the best possible service.
What determines the Live Silver Price?
The spot live silver price is set in New York and London on commodity exchanges. Overall, the live silver price is determined by the available supply versus demand. In recent years, mine production has fallen significantly below demand, and as available silver sources continue to wane, the fundamental value of silver continues to strengthen. However, because silver is also a ‘monetary metal’, its price is also influenced by the same factors as gold: inflation, fluctuations in stocks and currencies, currency-related crises, interest-rate volatility and international tensions, and by increases or decreases in the prices of other commodities. Now is an excellent time to buy silver because of the consistent rise in price over the last ten years.
The importance of our foreign exchange rate
The live silver price is always set and quoted in US dollars. Thus, the silver price is sensitive to currency fluctuations between the Australian dollar and the US dollar. Simply put, when the Australian dollar gets stronger in relation to the US dollar, the silver price in Australian dollars goes down even if the spot live silver price remains the same. Conversely, when the Australian dollar weakens, the silver price goes up.