Live Silver Market
Silver Price Glossary
Plain-English definitions of the terms you'll encounter when tracking silver prices, trading bullion, or reading financial analysis. 26 terms defined.
9
999 Fine Silver
Silver with a purity of 99.9% or higher. Also called pure silver or investment silver. Used in silver bullion bars and coins such as the American Silver Eagle. Its price equals the spot price per gram/ounce.
A
Ask Price
The price at which a dealer will sell silver to you. Also called the offer price. The ask price is always higher than the bid (spot) price by the dealer's spread, which varies by product and dealer.
Allocated Silver
Physical silver stored in a vault that is specifically assigned to you — identifiable by bar number. You own actual bars. This contrasts with unallocated accounts where you have a claim on the pool, not specific bars. Allocated storage is safer but costs more.
B
Britannia Silver (958)
A high-purity silver alloy containing 95.8% silver, used for British hallmarked silverware and the Britannia bullion coin. It has a melt value of 95.8% of the fine silver spot price.
Bid Price
The price at which a dealer will buy silver from you. The bid price is always lower than the ask price. The difference between bid and ask is the dealer's spread — their profit margin.
Bullion
Physical silver (or gold) in bulk form, valued purely by weight and purity — not for collector or artistic value. Silver bullion includes bars, rounds, and coins like the American Silver Eagle or the UK Britannia.
Backwardation
A market condition where the silver futures price is lower than the current spot price. This is unusual and can signal strong immediate demand, supply shortages, or delivery concerns.
C
COMEX
The Commodity Exchange, part of CME Group (Chicago Mercantile Exchange), where silver futures and options are traded in New York. COMEX is the world's largest marketplace for silver derivatives and strongly influences the global spot price.
Contango
A market condition where the silver futures price is higher than the spot price. This is the normal state of silver markets, reflecting storage and financing costs over time.
F
Fineness
The purity of silver expressed in parts per thousand. 999 fineness means 99.9% pure silver (fine silver). 925 fineness means 92.5% silver (sterling silver). Investment-grade silver bars and coins are typically 999 fine.
Futures Contract
An agreement to buy or sell a fixed amount of silver at a set price on a future date. Traded on exchanges like COMEX. Futures prices can differ from spot prices due to the cost of storage, financing, and delivery (known as the cost of carry).
G
Gold/Silver Ratio
The number of ounces of silver needed to buy one ounce of gold. Historically, this ratio has averaged around 60:1 to 80:1. A high ratio (e.g., 100:1) suggests silver is historically cheap relative to gold and may present a buying opportunity.
H
Hallmark
An official mark stamped on silver items to certify their purity and authenticity. In the UK, hallmarking is mandatory for silver items over 7.78g sold as silver. Common hallmarks indicate the assay office, maker, fineness, and date.
L
LBMA (London Bullion Market Association)
The international trade association for the over-the-counter (OTC) precious metals market. The LBMA sets the LBMA Silver Price — a daily benchmark price for silver fixed twice each London trading day, used by banks, miners, and refiners worldwide.
LBMA Silver Price
The official daily benchmark price for silver set by the London Bullion Market Association. It is determined by an electronic auction at 12:00 noon London time and used by refiners, miners, banks, and industrial buyers worldwide for contract pricing.
P
Premium Over Spot
The amount you pay above the raw spot price for physical silver. Premiums cover minting, fabrication, dealer margins, and shipping. A 1 oz silver coin might carry a $3–5 premium over spot. Bars generally have lower premiums than coins.
Paper Silver
Silver exposure through financial instruments rather than physical metal — such as ETFs, futures, CFDs, or silver certificates. Paper silver tracks the price without owning physical metal. It carries counterparty risk but is easier to trade.
S
Spot Price
The current market price for immediate delivery of silver. It is quoted per troy ounce in US Dollars (XAG/USD) and changes continuously during global trading hours. This is the benchmark used by all silver price trackers.
Sterling Silver (925)
An alloy containing 92.5% silver and 7.5% other metals (usually copper). The most common standard for silver jewellery and cutlery. Its melt value is 92.5% of the pure silver spot price.
Spread
The difference between the bid (buy) and ask (sell) price. For silver coins, the spread can be 5–15% above spot. For larger bars, spreads are lower (1–3%). Minimising spread cost improves your return when selling.
Silver Thursday
A market event on March 27, 1980, when the silver price collapsed after the Hunt Brothers attempted to corner the silver market. COMEX raised margin requirements (Silver Rule 7), triggering forced selling. Silver crashed from $50/oz to under $11/oz in weeks.
Silver ETF
An exchange-traded fund that tracks the silver price. Examples: iShares Silver Trust (SLV), Aberdeen Physical Silver Shares ETF (SIVR). ETFs allow investors to gain silver price exposure without storing physical metal.
T
Troy Ounce
The standard unit of weight for precious metals. One troy ounce equals 31.1035 grams — approximately 10% heavier than a standard (avoirdupois) ounce (28.35g). All silver spot prices worldwide are quoted in troy ounces.
Tola
A traditional unit of weight used in South Asia (India, Pakistan, Nepal). One tola equals 11.6638 grams or 0.375 troy ounces. It is commonly used to price silver and gold in India. The silver price per tola is widely quoted by jewellers in Mumbai and across the subcontinent.
X
XAG
The ISO 4217 currency code for silver. XAG/USD is the standard ticker symbol for the silver spot price in US Dollars. The 'X' prefix indicates it is not the currency of a specific country, and 'AG' comes from the Latin word for silver: Argentum.
XAG/USD
The standard ticker symbol for the silver spot price expressed in US Dollars. XAG is the ISO code for silver, and USD is the US Dollar. This is the price shown on all major financial platforms.