What Was the Highest Price for Silver?

Mining & Minerals - Evaluations / Silver Exploration & Mining

Date posted: 09/23/15

Charlotte McLeod reports that Like most metals, silver has taken a beating in 2015. As of mid-September, it was down about 7 percent since the start of the year, and was selling for around $14.50 per ounce. Many silver-focused investors are understandably finding it difficult to remain positive. However, a little perspective on the market can go a long way, and those concerned about the silver price today might do well to ask themselves, what was the highest price for silver? The answer to that question reveals exactly how much potential there is for the silver price to rise and may provide some hope for those tired of the current low price environment. Before answering the question, what was the highest price for silver?, it is worth looking at how silver is traded. Knowing the mechanics behind how the metal changes hands can be useful in understanding why and how its price changes. Put simply, silver is traded in dollars and cents per ounce, with market activity taking place worldwide at all hours of the day. Key commodities markets like New York, London and Hong Kong are just a few locations where investors trade the metal. London is the center of physical silver trade, while the COMEX division of the New York Mercantile Exchange, or NYMEX, is where most paper trading is done. Physical silver is sold on the spot market, meaning that buyers pay a specific price for the metal and then have it delivered immediately. Paper trading is done via the futures market, with participants agreeing for the delivery of silver in the future at an agreed-upon price. In such contracts, two positions can be taken - a long position to accept delivery of the metal, or a short position to provide delivery of the metal. In terms of historical price action, the silver highest average annual price was $35.12 per ounce in 2011. The rise came on the back of very strong silver investment demand, and was more than double the 2009 average silver price of $14.67. Good Read ...