Commodities · XAG/USD
Silver Price
Silver sits between a precious metal and an industrial commodity. This guide explains how the silver price is quoted, where it trades and the forces that tend to move it.
Updated · FXPIPS Editorial Desk · Educational content, not investment advice
Data
Silver price data
Indicative silver spot price in USD and INR, with links to the official benchmark publishers.
Drivers
What moves the silver price
01
Industrial demand
Silver is used in electronics, solar panels and many industrial processes, so the outlook for manufacturing and economic growth can affect demand.
02
Movements in gold
Silver often moves in the same direction as gold because investors treat both as precious metals, although silver's moves are frequently larger.
03
US dollar and real interest rates
Silver is priced in dollars and pays no interest, so a stronger dollar or higher inflation-adjusted yields can weigh on it.
04
Investment flows
Buying and selling through bars, coins, futures and exchange-traded products can shift prices, particularly in a market smaller than gold's.
05
Mine supply
Much silver is produced as a by-product of mining other metals such as lead, zinc and copper, so supply does not always respond quickly to silver prices.
What the silver price means
The silver price normally refers to the price of one troy ounce (about 31.1 grams) of silver in US dollars. Silver has a long history as a monetary metal, but today a large share of demand comes from industry. That dual role means its price responds both to the financial forces that move gold and to the business cycle.
How silver is quoted
Silver's currency-style code is XAG, so the price in dollars is shown as XAG/USD. The base is one ounce of silver and the quote is US dollars. If XAG/USD is quoted at 25.00 (an illustrative price), one ounce costs $25.
Because silver trades at a much lower price per ounce than gold, it is quoted to more decimal places. Brokers define pips and points for silver in different ways, so always check the contract specification before calculating position sizes or pip values.
Where and when silver trades
- London OTC market: the main hub for physical silver. The LBMA Silver Price is a daily benchmark set by an electronic auction.
- COMEX (CME Group): the standard silver futures contract covers 5,000 troy ounces.
- Retail brokers: offer spot silver, CFDs and other products that track these markets, often with smaller contract sizes.
Like gold, silver trades almost around the clock on weekdays, with the most activity during London and New York hours.
Contract basics
Contract sizes vary more for silver than for many instruments. A common retail standard lot is 5,000 ounces, but some brokers use 1,000 ounces or other sizes.
Illustrative example: you buy 1,000 ounces at 25.00 and the price rises to 25.40. Your gross profit is (25.40 − 25.00) × 1,000 = $400. A fall to 24.80 would mean a loss of (25.00 − 24.80) × 1,000 = $200.
The notional value of that position at entry is 1,000 × 25.00 = $25,000. At 10:1 leverage, the margin required would be $2,500. Use the Position Size Calculator with your broker's contract size to size trades by risk.
The gold/silver ratio
Some traders watch the gold/silver ratio: the gold price divided by the silver price. With illustrative prices of 2,000.00 for gold and 25.00 for silver, the ratio is 2,000 ÷ 25 = 80, meaning one ounce of gold buys 80 ounces of silver. The ratio changes over time and is used as one way to compare the two metals, not as a reliable predictor. See our Gold Price page for more on gold.
Why silver can be more volatile
Silver's market is smaller than gold's, and its industrial exposure adds a second layer of sensitivity to economic news. As a result, percentage moves in silver are often larger than in gold over the same period. Higher volatility means wider swings in both directions and generally calls for smaller position sizes for the same risk.
Risks
- Large percentage moves in short periods, especially around economic data.
- Leverage magnifies gains and losses; read What is leverage?.
- Thinner liquidity outside the busiest hours can mean wider spreads.
- Contract differences between brokers can cause sizing mistakes.
Trading silver with leverage carries a substantial risk of loss. This page is for education only and does not provide investment advice.
This page is for education only and is not a recommendation to buy or sell any instrument. Leveraged products such as CFDs and futures can lose you more than you expect; check your broker's contract specifications and your local regulations.