What is silver spot price to the inexperienced investor is a misunderstood term. Most investors confuse the live silver spot price, with the silver spot price, and believe me they are two different things.
What is Silver Spot Price
The term silver spot price, is the name given to the current month’s future contract, for the price of silver. To be more specific it is the price for silver right now, or on the spot. On the other side, when people refer to a live spot silver price, people actually mean the current price of silver futures, trading on exchanges such as NYMEX or COMEX.
How Spot Price is Calculated
In particular, the spot price is calculated according to the most recent average bid price offered by worldwide traders. The silver spot price changes every minute. It is been influenced by supply and demand, war, etc.
The live spot silver price is the price of silver agreed by the two parties at the settlement date. The live silver spot price is always higher than the silver spot price and this is due to charges for storage, transportation, and finance charges, for the delayed payment in relation to the maturity date of the contract. The live silver spot price is also affected by supply and demand, war, etc.