How is the Silver Spot Price Set?

You may then wonder, who sets the Silver spot price in the first place? The answer to that question is not quite as simple. When you examine how the worldwide Silver spot price is determined you will see that it is a complex equation. The entities with the most power over the Silver spot price do not generally exchange physical Precious Metal, but instead, use derivative commodity contracts to determine the price of Physical Silver.

Why is the Silver Spot Price Constantly Updating?

The fluctuations of Silver’s spot price at this time are mostly determined by the COMEX. The COMEX division of the New York Mercantile Exchange is the most influential trading market for Silver futures contracts and consequently has the greatest impact on Silver’s worldwide fiat currency spot price.

Futures contracts for Silver on the COMEX represent the projected price of 5,000 ounces of Silver on a hypothetical future delivery date. However, most futures contracts are never settled in Physical Silver, just cash. Hundreds of ounces of “on-paper” Silver are traded on the COMEX for every single ounce of Physical Silver that is ultimately delivered in the real world.

Silver Spot Price in Review

Today’s Silver spot price is a composite of worldwide futures markets, mostly the COMEX, representing the underlying real-world Precious Metal value. The Physical Silver market, including respected Precious Metals retailers like APMEX, track the spot price of Silver carefully, and Silver bullion product prices generally hover just above the Silver spot price.

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