What is Meant By Spot Price of Silver?
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The price set for sale of silver in the spot market is called the spot price of silver. Spot price silver markets are situated all over the world. The London market fixes the spot price of silver every day afternoon. Spot price silver is the actual cash to be paid to purchase one ounce of silver. This price will fluctuate depending on the silver trade carried across the world on the rest of the day.
Spot price of silver is similar to the price of gold set everyday by all means. The same factors affecting the current and future value of gold affect the silver market too. To a list a few main factors we can mention political instability, release of stockpiled gold into the market by major economies, short supply and excessive demand in the metal due to festive season.
Though all these factors influence the spot price of silver, industry demands and investment demands are the two major factors responsible for the sharp rise in the spot price of silver over the past ten years time. People who decide to invest in silver can enhance their knowledge by viewing the history of silver price rise over the past decades in the various spot price silver websites. COMEX spot price website is a very useful one.
Silver investment is done in various forms. Silver can be bought as bar or bullion, as an ETF share or jewelry. Many people still think buying silver in the jewelry format is the only option. But it is not the truth. The resale value of jewelry and all intrinsically carved objects will be very low because other metals are mixed with them. The cost we pay for those objects include the rate for craftsmanship too. But when we sell them back, we get the price for the silver content only which will be relatively less.
Hence if you are planning to invest in gold for a long time and expect to get a profitable return, avoid investing in silver jewelry and objects. Consider options like silver mutual funds, buying bullions or bars and quality silver coins like American Silver eagles and Canadian maple leaf coins. Their value keeps increasing constantly and they are a safe investment for the future.
References:
http://ounceofgold.net/how-many-pennyweights-in-an-ounce-of-gold/
http://priceofplatinum.org/price-of-platinum-rings/