I`ll preempt this post by saying that I`m absolutely dreadful at maths, and a relative newb when it comes to global markets and stuff. but I`m curious as to How the price of silver is worked out, and how that affects the price in the UK. for instance what is the currency that the silver price is based on? it certainly seems not be based on Local levels or currency. if for instance it`s based on the USD, and it`s at $20 Oz right now, and GBP was 1 = $2 (like it was in the good old days), I should be able to buy 1 Oz for a tenner, would that be about right? so Ideally I`d need to wait for a Strong GBP and a Low silver price to Buy, or does it make any difference at all? are they even linked like that? sorry if it`s a dumb question, and please reply in laymans terms if at all possible Cheers!
The spot price is in USD from the futures markets at least I think it's traded in USD even in HK and London - might be wrong. Current spot is $19.48 USD looking at the top of the silver stackers page Current GBP/USD exchange rate is 1.67969 (according to xe.com) So spot in GBP is 19.48 / 1.67969 = 11.6 pounds What you actually pay for a physical ounce will depend on fabrication costs and taxes etc etc so might be considerably more than the spot price
Yes. But then u add on uk tax. Everything is traded in US dollars. If a country chooses not to trade in US dollars they will attack you.
so a weak Pound and low silver price will be the same value as a strong pound for a higher silver price in overall value for money? so the ideal time to buy would be a Strong pound against the dollar at a low silver price.
I understand and dont understand the first question. It blew my mind lol. The ideal time to buy is when silver costs less in pounds. If silver costs less for the pounds you have the better it is for you in your day to day life. U dont have to worry about what the US dollar is doing or the dollar to an oz of silver is doing. Just find a chart that shows the silver/pound live price and always refer to that.
How does the price mechanism itself work? In order to stick a price on something, demand and supply must be measured somehow. That means that a part of the market is monitored. The starting and stopping of a futures market position of 5000 ounces, the purchasing and sellingof 1000 ounce bars by ETF management, the coin purchases and sales from the wholesale level bullion dealers, and so on. A Londox 'price fixing' is according to some sources a meeting where big bullion dealers come together and according to their sales figures, take, dump, rollover or settle futures contracts, the whole of it delivering a figure that is used as reference for the spot price. I don't know why this requires such a meeting. Why don't they just trade those futures contracts along internet/whatever communication? For ex, a precious metals dealer can suddenly be confronted with lotsa / big customers that return to sell their silver back, think GEEZ!, and hurry to change/take a futures market position more towards the short side (so less longs and/or more shorts), thus driving price down, so that the customers get less dollars for the silver they want to sell back to the precious metals dealer. So the role of that price fixing meeting, appears abit unclear to me.
