The actual up to date price of silver is changing every second of the day. The current price at any given moment is known as the spot price. The spot price is the cost of one ounce of silver. Silver is always measured in individual ounces as a base price. If you want a 10 ounce bar, the cost would be equivalent to the spot price for one ounce x10. Unless you are buying a coin with a premium, the end price of silver will exactly match whatever the spot price is. Now, while you should be paying the current spot price, there are almost always some small additional fees associated with the purchase of silver. Buying silver from a brick and mortar store will cost you more than buying silver online, though, so it is always more cost effective to make your purchases online.
Added Costs for Silver Purchases
Though there are some extra costs for buying silver, from anyone, they are very small and will not break the bank. The fees that are charged for buying silver are the way that silver companies make their money. Silver companies, stores, or dealers do not make all of their money off of actually investing in the metal themselves, instead they look to make a little bit on each individual transaction. You might be able to locate some dealers who will sell their coins or silver at the exact spot price without any added costs, but these deals will be far and few between.
Brick and Mortar Store Fees vs. Online Fees
Physical silver dealers generally charge around 50 cents per ounce of silver or gold that they sell, though some stores use different fee structures than others. When you buy your bullion online, however, you will find that the cost is much much lower. Instead of paying a half dollar at your local store, you could buy silver online for only pennies on the dollar. The transaction fees are really quite minimal and are not going to put much of, if any, dent in the investment that you are making.
The Price of Silver is a Product of the Free Market
In the end, silver costs whatever the free market decides it should cost. If a country decides to sell off its reserves of silver and the American public gets news of this, expect silver to go up. Silver and other metals are the truest measure of supply and demand. The price and value of paper currency goes down on a regular basis, but this is because the supply is always increasing much faster than the demand can possibly match. Silver bullion, on the other hand, is not going to increase in supply.
The amount of silver available today is the same amount of silver that is going to be available tomorrow and the next day. You won’t be able to find more silver in the world no matter how hard you look, it certainly is not going to grow, and you can’t make it yourself. The price of silver is always fluctuating, though it tends to always go up, and it is always based on how much of a desire there is for the metal. Don’t look at silver like a piece of clothing that can be reproduced when you are considering cost, instead think of silver as a precious gem that is very limited in quantities and availability. Silver is a truly rare investment and the price will always rise because the demand is always there to keep pushing it up.
Price Over Spot
Almost every piece of silver is going to cost more to the end consumer than spot. The reason for this is that sellers/dealers/websites need to be able to turn a profit on their sales. They make money by either buying scrap and refining it for resale, or they buy at a price over spot and sell if at a slightly higher price. Silver dealers are just like any other business in that they buy items at a certain price and sell them for a higher one.
While you are not going to be able to buy silver at spot (assuming you are looking for pure bars, rounds, or coins), you can achieve a discount on your orders if you are buying in bulk. This will send the cost down a fair amount if you are able to afford large orders. Another way to lower the cost of your silver is to use the cheapest payment methods. For example, bank wires will generally come along with a lower final price tag than credit card purchases.
The cost of silver is always going to vary based on dealer, the markets, what you are buying and many other factors. While there is never going to be a definite answer to this question, we hope that this guide served as an informational tool.