Today’s Silver Prices Per Ounce – What’s the Current Rate?

Silver has long been considered a valuable precious metal, used both for jewelry and as an investment. With its shiny luster and malleability, silver holds inherent appeal. Its versatility also lends itself well for industrial uses. For investors, the fluctuating price of silver offers opportunity to buy and sell at different values. So what are today’s current silver prices per ounce? Let’s take an in-depth look.

An Overview of Silver Pricing Factors

Many factors impact the daily spot price of silver. By understanding what moves silver valuations, investors can make informed decisions. Here are some key elements that shape silver’s ongoing market price:

  • Supply and Demand – Basic economic principles largely control silver prices. When supply is low and demand high, prices tend to rise. The opposite occurs when supply is high and demand decreases. This includes investment demand as well as commercial/industrial needs.
  • Inflation/Deflation – As a physical asset, silver often acts as an inflation hedge. Inflation can lead investors to silver to protect against currency devaluation. Deflation, on the other hand, can dampen prices.
  • Market Performance – Stock market volatility frequently impacts precious metals like silver, making it an alternative asset. When markets decline, investors may park money in silver as a safe haven.
  • Global Events/Uncertainty – Geopolitical events, trade wars, economic instability can influence investment flows. Investors tend to move to precious metals in unstable times.
  • The U.S. Dollar – A stronger dollar typically drives silver prices down. Since silver is dollar-denominated, a stronger USD makes silver more expensive for foreign buyers. A weaker dollar conversely lifts prices.
  • Gold Prices – There is a close correlation between gold and silver prices. When gold prices rise, silver also sees a corresponding increase as investors allocate to precious metals.
  • Production – Silver mining production outputs each year can affect supply. Disruptions or expanded mining can cause supply-related price movements.
  • Futures Trading Activity – Hedge funds and speculators trading in the futures markets significantly impact silver’s volatility and prices.

Keep in mind silver trades 24/7 on global exchanges, sensitive to both macro and micro-economic forces worldwide. This complex interplay of dynamics moves silver prices daily.

Where to View Live Silver Spot Prices

Many online resources provide live updating silver spot prices throughout the trading day. These streaming prices reflect the latest quoted rate for an ounce of silver, typically quoted in U.S. dollars. Some leading sites to view current silver valuations include:

  • Kitco – Offers silver prices along with news and analysis at www.kitco.com
  • APMEX – Precious metals dealer displays live prices at www.apmex.com
  • JMBullion – Features current rates alongside dealer prices at www.jmbullion.com
  • SilverPrice.org – Displays charts and calculators at www.silverprice.org
  • Yahoo Finance – Look up silver futures under symbol SILVER at finance.yahoo.com
  • Google Finance – Search for silver or SILVER for quick spot prices

These sites provide the current trading prices, updated every few minutes during active trading hours (normally 8AM-5PM EST).savi

What are the Various Silver Price Benchmarks?

There are several common benchmark silver price quotes traders keep an eye on:

  • Spot Price – The live price silver is selling for immediate delivery. Varies between exchanges.
  • Futures Price – Contract price for future delivery of silver on the COMEX exchange. Most widely used benchmark.
  • London Fix – Twice daily benchmark price set in London by major silver dealers via conference call.
  • SIFO – The Silver Indicative Forward Rate shows 1-month futures contracts rates.
  • SIFMA – The Silver Indicative Forward Midrate Average details 3-month and 6-month futures rates.
  • Photovoltaic Indicator – Benchmark for solar panel manufactures set once daily in Europe.

Understanding these common reference prices provides context around market silver valuations. The spot price directly impacts silver coins/bar dealers and retail customers. Futures and fix pricing influence industrial users and larger investors for upcoming delivery and hedging.

Typical Spreads Between Spot Silver and Futures

Though correlated, there are typical variances between the spot and futures silver prices:

1-Month Futures vs. Spot

  • Higher than spot by 2-4 cents normally
  • Can spike higher during periods of heavy demand

2-Month Futures vs. Spot

  • Higher by around 5 cents on average
  • Spikes above 10 cents if strong demand

6-Month Futures vs. Spot

  • Ranges from 8-12 cents above spot generally
  • Can jump to 16 cents higher during robust trading activity

12-Month Futures vs. Spot

  • Moves 12-16 cents above the spot price commonly
  • Approaches 24 cents in peak volatility environments

These consistent price spreads derive from the costs required when trading futures contracts, like broker fees, delivery expenses, insurance/storage for delayed delivery.

Current World Silver Reserves and Top Producing Countries

Globally about 530,000 metric tons of silver reserves are known to exist currently. This may last around another 18 years at current production rates before being depleted. The top silver producing countries worldwide include:

| Country | Production (2019) | Reserves (2020) | Global Reserve Share |
|-|-|-|-|
| Peru | 4,100 tons | 120,000 tons | 18% |
| Australia | 1,700 tons | 69,000 tons | 10% |
| Chile | 1,600 tons | 77,000 tons | 12% |
| China | 4,600 tons | 43,000 tons | 6.5% |
| Poland | 1,400 tons | 85,000 tons | 13% |

Other major producers include Russia, Mexico, Bolivia, Argentina, and the United States. Peru topped production for the past decade+ with prolific mines. Australia and Chile have steadily dropped in rank as lower ore grades diminish outputs. China still produces meaningful volumes but has fallen from #1 position years ago.

Top Silver Producing Companies Worldwide

While many miners extract silver from mines focused on other metals, some companies primarily produce silver. Here are the leading global silver producers based on 2019 mining volumes:

  • Fresnillo Plc – 58.7 million ounces
  • KGHM Polska Miedź – 40.2 million ounces
  • Pan American Silver Corp. – 26.1 million ounces
  • Polymetal International Plc – 25.6 million ounces
  • Buenaventura – 23.3 million ounces
  • Volcan Compañía Minera – 22.8 million ounces
  • Southern Copper Corp – 18.6 million ounces
  • Glencore Plc – 13.5 million ounces
  • Gold Corp – 12.8 million ounces
  • Hochschild Mining Plc – 12.7 million ounces

These top companies account for over 40% of the world’s silver production. Fresnillo, the largest, operates almost exclusively in Mexico. KGHM is based in Poland’s historic mining region. Pan American Silver and Buenaventura have multiple South American mines.

Development of Silver Prices Over the Last 5 Years

Silver has gone through volatility over the past five years, seeing both spikes and sharp drawdowns. Overall it remains rangebound but is up from its lows:

Silver Prices (Based on London Fix):

  • Oct 2018 – $14.34/ounce
  • Oct 2019 – $17.57/ounce
  • Oct 2020 – $24.47/ounce
  • Oct 2021 – $22.74/ounce
  • Oct 2022 – $19.02/ounce

The huge run-up in 2020 extended into early 2021 with silver reaching nearly $30/ounce before sliding back down. This coincided with the demand shock of COVID-19 which strained supplies. Prices remain depressed in 2022 amidst broad market weakness and dollar strength.

Historical Silver Price Movements

Looking back over decades shows both big upward and downward swings for silver, with major economic and geopolitical developments driving large price movements:

  • 1970s – Rose from $1.50s to reach record of nearly $50/ounce in 1980 due to oils shocks and rampant inflation.
  • Early 1980s – Fell back under $10/ounce with Fed raising interest rates to contain inflation.
  • Early 1990s – Dropped under $4/ounce due to recession and waning inflation/investment demand
  • 2006-2011 – Soared back to nearly $50/ounce as a commodity boom unfolded amidst US housing bubble and QE programs.
  • March 2020 – Briefly crashed below $12/ounce as COVID lockdowns hit before violently reversing higher.

These multi-year cycles illustrate silver’s volatility historically. The metal offers opportunities whether as a safe haven play, inflation hedge, or via shifting supply and demand drivers.

Short Term Silver Price Outlook

In the near term over 2022-2023, analysts expect silver prices to remain rangebound but ultimately begin recovering:

  • Median Price Forecast End of 2022 – $21 per ounce
  • Median Price Forecast End of 2023 – $25 per ounce

With markets anticipating a peak in inflation and Fed tightening, investment demand should improve. Still challenged mine supply and uses for solar/EVs also paint a better picture long term.

Upside price risks include a falling dollar, equity market crashes, geopolitical turmoil. Downside risks stem from renewed dollar strength, global slowdown curbing industrial demand. But the long-term thesis remains bullish.

How Does the Price of Physical Silver Coins Compare?

When purchasing physical silver coins and bars from dealers, premiums get added above the spot silver prices:

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  • Silver Eagle Coins – $3-$5 premiums generally
  • Silver Rounds/Bars – Around $2 premium per ounce
  • Junk Silver Coins – Spot + $1.50 premium per ounce

These premium costs cover manufacturing, transportation, marketing, and dealer profit margins. Higher volume purchases can qualify for lower premiums in some cases. Geographic location also impacts premiums charged.

Common Questions About Current Silver Valuations:

What factors make silver prices change daily?

Myriad factors cause daily fluctuations in silver valuations, including metals futures trading, currency movements, inflation outlooks, economic performance, geopolitical turbulence, supply and demand dynamics in end-use markets, ETF activity, and investment positioning.

How can I buy silver bars and coins at the lowest premiums?

Finding reputable dealers offering the lowest premiums above spot generally involves shopping around online, comparing pricing from various retailers. Higher volume purchases usually qualify for the lowest premium deals. Secondary market sites may also offer discounted pricing.

Is now a good time to invest in silver?

With silver prices still historically low after the 2020 run-up, many analysts forecast higher prices long term. But short term volatility persists, so dollar cost averaging may be prudent rather than making all-in bets today. Consider your risk tolerance and investment time horizon.

Does silver offer better return potential than gold currently?

Because silver has more industrial uses than gold, it could generate higher returns if global growth accelerates. With a gold:silver ratio around 80:1, above the historical average near 60:1, silver also appears relatively undervalued to gold at the moment.

How will a recession impact silver prices in the near future?

Recessions typically spur safe haven demand for precious metals like silver, buoying prices. However, recessions also curb industrial/investment activity which could mitigate gains. The net effect may be muted price action until recovery resumes.

Conclusion

Understanding where silver prices stand today provides useful insight for investors considering buying or selling the metal. Tracking silver spot rates, futures benchmarks, and dealer premiums grants perspective on opportunities. With silver poised to retain intrinsic value and importance across various industries long term, current price lulls may offer advantageous entry points relative to future upside potential. Yet paying mind to the array of complex forces swaying silver on a daily basis remains an essential part of an informed investment process.

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