The current price of silver is 24.63 per 1 troy ounce (31.1 grams). Today the price is trading in the range: 24.61-25.04. Price at the end of the previous day: 24.90. Change for today -$0.27, -1.08%.
| 24.63 | -1.08% |
Recent changes:
| Period | 2 days | 3 days | A week | 2 weeks | 1 month |
| Change,% | -0.89% | -2.03% | -1.76% | +0.29% | +2.03% |
| Price | 24.85 | 25.14 | 25.07 | 24.56 | 24.14 |
Oil price online.
Dollar exchange rate forecast for the month and 2021-2024.
The relationship between sample and price
Silver bullion is not used for smelting and creating jewelry due to the high ductility of the metal. Therefore, bullion is often purchased for storage, with the prospect of an increase in the price of the precious metal, or to emphasize personal status.
To increase the hardness of argentum, impurities of copper, nickel, platinum or other less noble metals are added to the alloy. The percentage of impurities affects the final silver sample. The more other chemical elements there are, the lower the specific gravity of the precious metal and the lower the cost of the bar or jewelry.
What standard of silver items should you invest in?
| Try | Description |
| 999 | Maximum content of pure silver. Sometimes 99.9 is written on bars. There is no higher standard. There are practically no foreign impurities in such a metal. It has the highest price. |
| 960 | As a percentage, the alloy contains 4% copper or nickel. Expensive jewelry is made from metal of this standard. But more often it is used for souvenir spoons, church paraphernalia, water ionizers and highly artistic decor. Silver of this standard has a pronounced antibacterial effect, so the products have double value. The cost of argentum 960 is slightly lower than for bars of the highest category. |
| 925 | Silver of this standard contains up to 7.5% copper, nickel or any other alloying metal. It is from such alloys that most jewelry is created. The metal is harder, more elastic and holds its shape well, which increases wear resistance with constant use. To increase the anti-corrosion effect, resistance to oxidative processes and maximum shine, most jewelry is coated with a layer of white rhodium. This treatment increases the cost and improves the physical properties of the metal. The cost of the finished product is influenced not only by the price of silver, but also by the complexity of the work, piece size, exclusivity or the name of the master. In addition to jewelry, 925 sterling silver is used for expensive interior items, cutlery, coins, medals and memorable signs. |
All silver items from 999 to 925 are priced at the highest value for this precious metal.
Which type of products are less attractive for investment?
The more impurities in silver, the less valued it is by both jewelers and buyers. However, some items may be of high value, but this is rarely explained by the precious metal content.
| Try | Description |
| 875 or 84 | Less popular than 925, but also used by jewelers. Contains 12.5% impurities, most often copper, silicon, germanium or platinum. In addition to jewelry, alloys are used for industrial purposes. It is used to create household items, dishes, medals, coins and other less expensive products. If the composition contains platinum, this leads to an increase in the price of the finished product. On ancient products you can find the marking 84, it is equivalent to the modern 875 standard. Such products are of greater value, but not because of the silver content in them, but rather as a rarity or a collector's item. |
| 830 and 800 | This test is rarely found on jewelry. The metal is initially distinguished by a slight yellowness, which reveals a large amount of impurities of 17-20%. Silver quickly oxidizes - turns black, yellow, red or green, depending on which metal predominates in its composition. It is much more often used for inexpensive cutlery or industrial purposes. |
All silver items are marked. In Russia, marking consists of three elements - the symbols of the state inspectorate for assay supervision, the mark of the assay certificate and the sample number.
Price Action for Trading Silver on Forex
The Price Action method is based on the price chart and its behavior. Together with Price Action, it is quite possible to use Volume Spread analysis patterns, which increases performance.
Using this system, you can effectively analyze price movements, interpret certain data and draw the right conclusions.
What affects the price and exchange rate of silver
The price of one gram of silver depends on:
- Cost of raw materials . It does not change depending on where the metal was mined in Europe or America.
- Demand for metal . In industry, medicine, jewelry and any other industries where it is purchased and used.
- Exchange rates . Quotes for the currencies of those world leaders whose reserves hold a large volume of this precious metal also affect the price of silver.
- Key rates of central banks of leading countries . When rates at major banks in major economies fall or rise, the price of silver also changes.
- Amounts of metal on the planet . The total volume of Argentum deposits, according to US estimates, is 512 tons. Most of it is concentrated in Peru - up to 23%, another 14% in Chile, Poland and Austria, 7% in Mexico and 5% in the USA.
According to experts, the development of silver deposits will be completed within the next 20 years. It is then that demand will begin to increase, since at the moment no widespread alternative has been found. In some industries, artificial alloys are already used instead of silver, while in other areas such “substitutes” cannot perform the functions assigned to them. In this regard, investors see a certain perspective in this asset, as in any other asset that physically cannot remain infinite.
The limited nature of silver gives it added value as a long-term investment. While getting a quick profit from investing in precious metals is less likely.
XAU/XAG Chart Analysis
A few important points that can be seen on the monthly gold/silver ratio chart:
- It is clear that the ratio tends to vary within a narrow range of 45-85 (highlighted on the graph). But as volatility and uncertainty increase, we see sharp movements that push the trade ratio further outside of its normal range. For example, during the Covid crisis, the gold/silver ratio peaked close to the 125-127 levels, well above its all-time high, normal range and psychological level of 100.
- The 35-40 range acts as a lower limit for the ratio. It is highlighted with a green rectangle on the graph.
- The statistical average calculated over the period (January 2000 to August 2021) is around 65 (approximate value). This means that the 65 level acted as a midpoint for several swings, which is also clearly visible on the chart.
Now that we have a basic understanding of what important levels are, let's move on to interpreting these levels and understanding what rising and falling ratios mean.
How to calculate the value of silver yourself
Information on the price of silver is updated daily. Just like the prices of other assets - gold, securities, currency, oil. The Bank of Russia publishes current information every weekday.
In order to independently calculate the cost of 1 gram of silver in jewelry or cutlery, you will need to multiply the price by the sample. For example, the cost of a 925 silver ring weighing 10 grams as of 02/05/2020 will be:
36.24 rubles * 0.925 * 10 grams = 335.22 rubles, the cost of 1 gram of silver will be 33.52 rubles.
But it’s impossible to buy a new silver jewelry or spoon for that kind of money. This happens because the price includes not only the official cost of the precious metal spent on the product, but also other components. For example, it is influenced by the country of origin, the appearance of the product, the price of other metals included in the alloy and other factors.
What else affects the price of precious metals?
The method described above for calculating the price of silver does not give an objective result. With its help, it is difficult to estimate the real value and find out what the actual price of 1 gram of silver is on the market. As of 02/05/2020, the cost of silver at the discount price of the Central Bank of the Russian Federation of 36.24 rubles per gram looks like this:
| Measure | Purchase | Sale |
| International silver market price in US dollars per ounce (28.3495 grams) | 17,54 | 17,57 |
| Estimated price for silver in Russian rubles per gram | 35,29 | 36,35 |
The given data reflects silver quotes on the stock exchange. Indicators change daily. The data is recorded based on the trading results and entered into the Bank of Russia tables.
In addition, prices for 1 gram of silver will be different:
- a pawnshop, where silver jewelry is accepted for 18-22 rubles per gram, and when selling the pawned product they are sold for 31-100 rubles per 1 gram, this is based on various factors;
- a jewelry store, where the discount price of the Central Bank is tens of times higher, and the price for 1 gram varies from 500 to 700 rubles;
- on the stock exchange, here prices are closest to the rates at the Bank of Russia, they are in the range of 32-36 rubles.
Therefore, it is not only the sample that affects the price. Although it depends on it more than on any other parameters. The cost of two products with the same characteristics, but different silver content will differ in price only in terms of the volume of precious metal.
Using Volume Spread analysis to trade silver on the Forex market
Volume Spread analysis is used quite widely today among professional traders; it greatly facilitates the analysis of the current situation on the market, and also allows you to monitor the activities of major players. If we know what transactions a major player is making, in which direction he is opening, we can duplicate his actions and ensure our profit. Conducting Volume Spread analysis is the simplest and most convenient service, which greatly simplifies the daily activities of an exchange participant. Using this analysis method to assess the volume of completed silver trades, you will always be aware of what is happening and will be able to react as quickly as possible to ensure stable earnings.
Silver as an investment
There are three ways to invest in silver:
- ingots;
- coins;
- open compulsory medical insurance.
All three methods can be implemented in a bank. Although the first and second may also be offered by other companies that have a license to conduct transactions with precious metals.
Silver bars
Silver bullion is a popular way to purchase the precious metal for investment. This service is provided in Russian and foreign banks. To conclude such transactions, the company receives a license from the Central Bank to conduct transactions with precious metals.
The price of bars of the same weight can be different even in two neighboring banks. This happens because companies independently approve tariff policies and strategies. Therefore, before investing in silver bullion, compare offers from several banks.
In addition, pay attention to three nuances:
- Where will the bullion be stored - at your home or in a bank? An apartment or house will not always be a safe place, which means you will have to spend money on renting a safe deposit box or installing an alarm system.
- Find out if the company buys back silver bars that were previously sold. A number of banks do not have such a service. Or the redemption price of the bullion is very low. This reduces the benefits of investing in precious metals.
- Payment of VAT. When you purchase a silver bar, you will automatically pay 20%, which is included in the price. Therefore, the return on investment already at the time of the transaction is reduced by 1/5 of the cost.
Silver bars are standard and measured. The latter produce different weights - from 50 to 3200 grams. Each bar is supplied with a manufacturer's certificate, which should be kept nearby. If a document is lost, the value of the precious metal decreases, as does chips, deformations or scratches.
Silver coins
Coins made of silver and other precious metals can be purchased at a bank or numismatic store. VAT does not apply to such goods. Therefore, the final cost of the metal in a coin may be more profitable than in an ingot. In addition, coins are more likely than bars to appreciate in value over time due to their numismatic and collector's value.
Purchase and sale are carried out with commemorative, investment and exclusive coins, which contain silver or other precious metals. However, coins do not have such high liquidity as, for example, bullion. That is, buying a coin turns out to be easier than selling it. Banks either do not buy coins back at all, or the price for them is lower than when purchased.
To find a true connoisseur or collector who will appreciate the piece, you will need to study a lot of information. Therefore, this method of investing is not suitable for everyone.
However, with bullion coins the situation is different. Most often, banks buy back such products more readily, and their value grows much faster than that of the metal itself. Therefore, investing in investment silver coins can be a profitable alternative compared to an impersonal metal account or bullion.
Compulsory medical insurance
An unallocated metal account, or IMA , is a common method of investing in silver. The principle of operation resembles a foreign exchange account, but it stores not money, but precious metal.
A distinctive feature of compulsory medical insurance is that the exchange rate value of silver does not depend on the individual characteristics of the bullion, which include the purity, manufacturer and license plate. That is why it is impersonal because it has nothing to do with the identity of the account owner. It is in this regard that the account is individual and issued to a specific client.
When you open a compulsory medical insurance, you will not be given a silver bar in your hands. This means that it will not wear out, deteriorate, disappear or lose its original characteristics. You do not need to rent a safe deposit box or install an alarm system in your apartment. In addition, with this type of transaction, VAT is not charged, which means that buying silver through compulsory medical insurance is initially 20% more profitable than buying a bullion.
The account can be replenished at any time, as well as closed without losses or penalties. Some companies give the right to partially withdraw or use funds from the account. According to the observations of employees of the banking sector, compulsory medical insurance is opened in silver less often than in gold, but much more often than in palladium or platinum.
How to earn more on compulsory medical insurance
The exchange rate for silver, which is stored in the compulsory medical insurance, changes depending on the price set by the Bank of Russia and the exchange rate difference of the servicing bank. Some financial companies offer better prices for precious metals when purchasing large quantities. Check in advance, perhaps your servicing bank is also ready to give a discount when purchasing silver of more than 5-10 kg.
If you make a profit from compulsory medical insurance transactions, then you must pay 13% of the individual’s income. Some banks take on this responsibility. They hold the required amount at the time the funds are transferred to the current account. If your servicing bank does not do this, be sure to pay the tax yourself. Profit from compulsory medical insurance is not subject to taxation if:
- silver was stored in the account for 3 or more years;
- if the total amount of transactions for the sale of silver does not exceed 250 thousand rubles per year.
In the second case, you will still have to report the profit in your income tax return, although no tax will be charged.
Remember! Funds for compulsory medical insurance are not insured. Therefore, if the bank loses its license, it will be impossible to return investments in the precious metal.
SMA is the basis of a strategy for trading silver on Forex
The SMA indicator is quite effective and visual for trading precious metals. Let's describe strategies based on this indicator: we install three moving averages on the chart, which will work in accordance with the Simple method for the Close price level. One moving average is colored green and has a period of 5, the other becomes blue and is assigned a period of 3, and the last one is given a period of 8 and an orange color. When the orange line intersects the blue and green lines from bottom to top, you can start trading and open trades to make purchases. When the orange line intersects the other two averages from top to bottom, it is necessary to close positions.
When the blue and green lines cross the orange line from top to bottom, you can start selling shares. If the lines cross again, this is a sure signal to stop selling.
Both presented strategies can be used independently, or can be combined with a deposit acceleration strategy.
Dynamics of the silver rate in the Bank of Russia from 2010 to 2021
Investing in an impersonal metal account brings profit even when the official exchange rate of the national currency falls. The price of 1 ounce of silver and other precious metals is set by the London Stock Exchange. The Bank of Russia converts the troy ounce into grams and publishes the discount price on its website in Russian rubles. When the ruble exchange rate depreciates, the price of silver in rubles rises, regardless of the price set on the London Stock Exchange.
If you sell silver with compulsory medical insurance at a time when the Russian ruble exchange rate is falling, the transaction will bring additional income. And if the dollar exchange rate falls with a simultaneous increase in the price in dollars by 1 gram or 1 ounce of silver, the compulsory medical insurance goes to a loss. But a rise in the Russian ruble could result in a loss, even if the price of silver rises.
The dynamics of the discount price of silver in Russia, according to the Central Bank, over 10 years looks like this:
| Silver discount price effective date | Price in Russian rubles |
| 01.01.2010 | 16,42 |
| 01.01.2011 | 29,96 |
| 11.01.2012 | 29,56 |
| 10.01.2013 | 29,72 |
| 01.01.2014 | 20,63 |
| 01.01.2015 | 28,55 |
| 01.01.2016 | 32,40 |
| 10.01.2017 | 31,68 |
| 10.01.2018 | 31,49 |
| 10.01.2019 | 33,73 |
| 01.01.2020 | 35,48 |
| 05.02.2020 | 36,24 |
Over 10 years, the price of silver has increased 2.2 times. Silver has maintained a steady rise over the past 5 years. Over the summer of 2021, the price of the precious metal increased by 29%, which was the most dynamic increase in the last 37 years. While gold over the same time added 13%, and platinum - 14%.
Demand for silver is driven most by the industrial sector. The most important consumers of metal are China and the USA. Trade wars between these powers could lead to a decrease in demand, but most likely short-term. Leaders will restore or redistribute sales markets. Therefore, it is possible to consider silver as a long-term investment.
If you want to try other investment programs and decide to diversify your portfolio, then direct part of the funds to an individual investment account, brokerage account, deposit, entrust the management of a management company or invest in mutual funds and microfinance organizations.
about the author
Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]
Is this article useful? Not really
Help us find out how much this article helped you. If something is missing or the information is not accurate, please report it below in the comments or write to us by email
Comments: 0
Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:
Author of the article: Klavdiya Treskova
Consultant, author Popovich Anna
Financial author Olga Pikhotskaya
