Purchasing Silver is a very good investment that you can make with your hard-earned money. It can be a great source of investment for you as keeping your money in currency format always involves inflation and reduction of the value of the currency.
Investment in silver can be a great way to outshine inflation rates which affect your money and reduce your wealth.
Unlike gold, the investment in silver is affordable and comes in various weights and purity making it easily accessible to many people.
There are various type of silver and the prices of each of them is different. One such term used in the market is spot silver. In this article, we will discuss what is spot silver, Spot Price, Historic Silver Price data, what factors affect silver prices, and much more.
Types of Silver
The following are the types of silver that you may find in the market in India-
Sterling .925 Silver
Sterling silver is a jewelry standard silver and is the best type of silver available in the market. It can be used to make jewelry like necklaces, bracelets, etc.
It has a higher purity of 92.55% silver and 7.5% of other metals. The mixing of silver and other metals is necessary as pure silver is very soft and can be molded with a bare hand.
An alloy of sterling silver ensures that the strength of the jewelry remains. Typically Sterling silver has .925 and Stg are common quality stamps for this type of silver.
Argentium Silver
Argentium silver is an alloy of silver that is known for its non-tarnish nature meaning it requires less maintenance as compared to sterling silver.
The purity of the silver in this type of silver is the same as sterling silver but Argentium is mixed with Copper and germanium to achieve increased hardness and tarnish resistance.
It is costlier than sterling silver and finding a difference between Sterling silver and Argentium silver can be difficult as it contains a silver purity of 92.5%.
Coin Silver
Coin silver is a silver with purity of silver as 90% and the rest 10% is copper metal. It was a commonly used metal in older times and hence can be found on antiques.
The coin silver comes with a standard of .900 and comes with a stamp of .900 as well. It is quite rare now and can be found on antiques.
Fine .999 Silver
Fine Silver is the highest purity silver available and has a purity of 99.9% and also comes with a .999 mark. Fine silver does not have any shine and has a dull slightly grey color. Fine silver is a weak metal and can be easily bent and molded if you apply force. .999 FS or.999. is a quality stamp you need to look for when purchasing Fine Silver
Bali, Mexican, or Thai Silver
Bali, Thailand, and Mexico are known for high-quality silver used in jewelry-making and are exported from these countries in metal form.
These metals are then converted into jewelry and sold in the market. For determining the the actual value of the metal it requires quality stamps and additional indicators of quality and silver content.
Nickel Silver
Nickel is a metal alloy that contains a combination of chromium, copper, iron, titanium, and molybdenum. The proportion of these metals can be of various denominations.
When this alloy is mixed with the Silver, it becomes Nickel Silver. It is used for making jewelry and is known as German Silver as well as Alpaca Silver. It is an inexpensive metal and looks a little bit like Sterling Silver in appearance but is relatively soft.
Silver-filled
This silver metal type contains about 5% or 10% Sterling Silver and is infused with heat and pressure with other metals to form Silver-filled metal.
It is a cheap and low-quality product and is used for making very inexpensive silver jewelry. The items made out of Silver-Filled metal are prone to tarnish.
Silver Plated
Silver Plated is a technique where a small layer of silver is applied over a base metal and this thin layer formed on the base metal provides an appearance of silver but it is just the outermost layer.
The silver plating technique is used for jewelry and is very affordable as the life of the jewelry is less and is prone to tarnish.
Tibetan or Tribal Silver
Tibetan silver or Tribal Silver is a metal that gives out the appearance of silver but is made of other metal alloys which may or may not include silver.
It becomes difficult to determine the content of Tibetan silver hence the purity of the silver in the metal is also difficult to find.
What is Spot Silver?
Spot Silver is a term used to describe the silver available to purchase at spot rates. The spot rate is the current market price of the silver per ounce of pure silver.
The spot price of silver changes throughout the day due to market fluctuations. When you invest you may be charged an additional premium payment.
Spot Price
Spot Price refers to the current price of the commodity like metal, stock, etc. which is to be bought or sold for Immediate settlement.
Historic Spot Silver Price
The following are the Historic Spot Silver Prices as well as per KG price of the silver metal-
| Year | Silver Rates in /Kg. | Spot Silver Rates |
| 1981 | 2715 | 76.97 |
| 1982 | 2720 | 77.11 |
| 1983 | 3105 | 88.03 |
| 1984 | 3570 | 101.21 |
| 1985 | 3955 | 112.12 |
| 1986 | 4015 | 113.82 |
| 1987 | 4794 | 135.91 |
| 1988 | 6066 | 171.97 |
| 1989 | 6755 | 191.50 |
| 1990 | 6463 | 183.22 |
| 1991 | 6646 | 188.41 |
| 1992 | 8040 | 227.93 |
| 1993 | 5489 | 155.61 |
| 1994 | 7124 | 201.96 |
| 1995 | 6335 | 179.59 |
| 1996 | 7346 | 208.26 |
| 1997 | 7345 | 208.23 |
| 1998 | 8560 | 242.67 |
| 1999 | 7615 | 215.88 |
| 2000 | 7900 | 223.96 |
| 2001 | 7215 | 204.54 |
| 2002 | 7875 | 223.25 |
| 2003 | 7695 | 218.15 |
| 2004 | 11770 | 333.67 |
| 2005 | 10675 | 302.63 |
| 2006 | 17405 | 493.42 |
| 2007 | 19520 | 553.38 |
| 2008 | 23625 | 669.76 |
| 2009 | 22165 | 628.37 |
| 2010 | 27255 | 772.67 |
| 2011 | 56900 | 1,613.09 |
| 2012 | 56290 | 1,595.79 |
| 2013 | 54030 | 1,531.72 |
| 2014 | 43070 | 1,221.01 |
| 2015 | 37825 | 1,072.32 |
| 2016 | 36990 | 1,048.65 |
| 2017 | 37825 | 1,072.32 |
| 2018 | 41400 | 1,173.67 |
| 2019 | 40600 | 1,150.99 |
| 2020 | 63435 | 1,798.35 |
| 2021 | 62572 | 1,773.88 |
| 2022 | 55100 | 1,562.06 |
| 2023 (Till Today) | 74500 | 2,112.04 |
What Factors Affect the Prices of Silver?
The following are the factors that affect the prices of silver –
Supply
Supply of the silver metal plays an important role in factoring out the prices of silver metal. If the supply of silver is cut-off off for any reason, then the price of silver goes up and when there is overproduction of silver, due to availability, the price of the silver goes down.
Demand
The demand for silver is an important consideration when it comes to prices of the silver. As the demand for silver goes up and the supply does not match the demand, then the price of the silver goes up, and with lower demand, the price of the silver goes down.
Currency
The currency used in the country like Rupee is a paper note which has some value attached to it set by various factors and monetary policies of the government.
The currency can also be translated into the purchasing power of the bank note hence, the value of the currency determines the capacity of the banknote to purchase the silver.
Since the majority of international trade happens in US Dollars, therefore, the strength of the currency against the US dollar determines the price of the silver.
If US dollars keep on getting stronger against your currency then the prices of the silver also go up as the purchasing power of your currency is reducing.
Taxes
Whenever you purchase a commodity like silver, there are some taxes which are involved similarly, if you sell the silver then the capital gain that you’ve received due to the appreciation of the metal will be considered for your Income Tax unless it is exempted under some special scheme.
Silver Scrap Prices
Silver Scraps are the scrap or left-over metal which can be used by melting it. It is an unprocessed metal and requires processing for the production of jewelry or other items. If the silver scrap prices go up, naturally, the prices of the overall silver items go up as well.
Where to Buy Spot Silver?
You can buy silver in two formats i.e.- Physical Silver or Digital Silver. If you want to buy silver at spot rates, then the following is the marketplace where you can purchase silver from-
Physically Silver
Bullion
Bullion here refers to the bulk buying of silver which is 99.9% pure and is used for melting the silver and making various things out of it.
Silver Jewelry
Silver Jewelry can be bought from a jewelry store and comes in various sizes, shapes, weights, and purposes. Like Silver rings, chains, anklets, etc.
Silver Coin/Bars
Silver Coins/Bars are investment tools used for investing in silver coins. You can buy a silver coin or bar in various sizes. You can store these coins or bars for mortgaging or seeking a loan.
Paper Silver
Digital Silver on National Spot Exchange
Digital Silver or National Spot Exchange is an exchange market where you can buy silver without having physical possession of the silver. You’ll have possession of the stocks which you can freely trade and on your behalf, the silver metal will be managed, stored, and maintained by the firm. This is a convenient way of keeping the commodity safe and secure from thieves and at the same time allowing yourself to invest in the metal.
FAQ
Silver jewelry, coins, and bars have a hallmark of purity which determines the purity of the silver. The best jewelry-grade silver has a hallmark of .925 stamped on it. So, whenever you are buying anything silver ensure that the .925 mark is printed on it.
Yes, the price of silver keeps on changing and is available as per the international market price.
You can invest in silver by purchasing the silver coin, bar, or jewelry if you want to have physical possession. You can also invest in silver by pushing the digital silver ETFs and bonds wherein you would not have physical possession but still can benefit from investing in silver.
Various purity levels of silver are measured on a millesimal fineness scale for example- Fine silver: has 99.9% purity, Britannia silver has 95.8% purity, Sterling silver has 92.5% purity, etc.
Pure silver is 99.9% pure silver with no mixtures of any sort but the problem with this is that it is too malleable and is not strong for jewelry purposes hence, an alloy is created by mixing 7.5% copper and achieving a strong jewelry standard silver known as sterling silver.
