The Silver price.
Just like gold or platinum, silver is a precious metal. The international price is set daily by a process known as “fixing” but it is also dependent on the over-the-counter market, referred to as the "spot” price. Unlike the prices of shares quoted on markets such as the NASDAQ, precious metals like silver are constantly traded around the world on the many OTC (over-the-counter) markets. Transactions are carried out directly between sellers and buyers, at an agreed price. This price is not randomly determined, even if there is no officially quoted price. Referred to as the spot price this is the direct price taken from the silver market. There are, however, many different spot prices with sellers and banks both having their own respective methods of calculation. There is also the London fix, set everyday at 10:30 am and 3:00 pm by the London Bullion Market Association (LBMA). The London Silver Price is determined via an electronic platform that takes into account every order for purchase and sale given by a large number of major market players, the majority of whom are financial institutions. This price is used by the largest holders of silver stocks, such as central banks and industrialists who use silver.
Silver is not low-end gold.
The price of silver has risen over the last few years, gaining considerable importance in the marketplace: it is a recognised fact that silver today attracts more and more investors. Its recovery is partly due to a renewed optimism concerning the future of the global economy, as silver is mainly geared towards the manufacturing sector, and all industries that need silver are on the rise, such as the solar energy and electronics markets. It is favourable to buy silver coin rather than bullion (the same is also true for gold) to benefit from improved leverage during times of crisis. It is also an alternative to buying gold to provide increased diversity in an investment portfolio.
Frequently Asked Questions
Why is the VeraCash silver price higher than the spot price?
The price quoted by VeraCash is based on silver coins, unlike most of the silver sales that mainly concern the raw material and bullion. This is why our price is approximately 20% higher than other prices.