The price of silver will never remain absolutely static, and as a result it would be impossible to say what silver costs. The price is ever changing due to a number of different market conditions and variables. The price of silver at any given time is known as the spot price. The spot price reflects what the current equilibrium of buy and sell prices are. For example, if the top buy offer is $50, and the top sell offer is $50.02, the current price or cost of silver is $50.02.
Silver Costs by Type
The type of silver that you buy will play a significant role in its actual price. For example, a coin will cost more than a standard bar. Likewise, rounds and bars will be roughly the same. This is because raw forms of bullion are sold based on their actual metal content, whereas coins have a premium affixed to them primarily because of their collectible value.
The cost of most basic coins is usually around $3-$10 over spot. This will vary based on a particular coin’s rarity and the dealer who you are shopping with. One company might charge $5 over spot for a coin while another could be asking for $7 over spot. This is one of the primary reasons why it is important to shop around for the best deals, especially when you are ordering online.
The cost of silver bars and rounds is typically very close to the spot price itself. There is almost always going to be a slight mark up on any piece of silver, but this is because the silver dealer has to make a little bit of profit; otherwise they would go out of business. For bars and coins, the standard and fair pricing is about $2-$3 over spot for bars and around the same for rounds. All of these figures are relative to the price per ounce. If you are buying in large bulk quantities, however, you will be able to negotiate a bit of a better deal.
Elements in the Cost of Silver
Another factor that comes into play with the cost of silver is how you pay for it. Paying for your purchase with a credit or debit card will frequently force you to pay a slightly higher overall price. This is due to the fact that the person or dealer selling you the metal will be forced to pay processing charges that are associated with these methods of payment. The easiest way to avoid paying anything extra is to pay via check, money order, wire transfer, bank transfer, or even cash if you are buying from a brick and mortar store.
As mentioned previously, bulk orders will earn you a discount. The thing about buying in bulk with silver or any precious metals, though, is that bulk is usually constituted by several thousand dollar orders. You shouldn’t expect to receive any sizable cut off the final price if you are buying just a few ounces. For very larger orders, call the silver website or dealer and ask what type of deal you might be able to work out. There is a good chance that you won’t receive any discount at all, but it is definitely worth asking about.