The global silver market is a robust component of the precious metals sector, involving mining, refining, industrial use, investment demand, and physical trade. Silver, like gold, trades on spot markets and through institutional contracts but also has significant use in technology, medical, and energy sectors.

Good Delivery & Accepted Bar Sizes

Silver bars that meet London Bullion Market Association (LBMA) Good Delivery standards are globally accepted for settlement and investment. Key criteria include:

• Weight: Typically 1,000 troy ounces (~31.1 kg), though some variation is allowed.

• Purity: Minimum 99.9% (999 fine).

• Stamps: Bars must be marked with the refiner’s hallmark, purity, weight, and serial number.

• Bars are produced by LBMA-accredited refiners to ensure global tradability.

Retail bar sizes include:

• 5 oz, 10 oz, 100 oz, and 1 kg bars.

• Silver coins for retail and collector markets.

Spot Silver, Storage, Refining & Transport Costs

• Spot Price reflects real-time market valuation for immediate delivery, influenced by industrial demand and investor sentiment.

• Silver requires more volume per dollar than gold, so storage costs are higher. Secured vaulting typically ranges from 0.3% to 0.7% annually.

• Silver refining is generally less costly than gold, but varies by purity. Costs range from $0.50 to $1.50 per troy ounce depending on contamination and form.

•  Larger volume makes silver more expensive to transport relative to value. Secure logistics can cost $500–$2,000+ per shipment, depending on distance and insurance.

Risks of Discounted Silver from Mexico and Peru

Mexico and Peru are leading silver producers, but buying discounted silver, especially in dore or raw forms, carries significant risks:

•  Informal markets can present counterfeit or impure metal.

• Illegitimate export documents, unclear origin trails.

• Mining rights, permits, and export policies can be complex.

• Processing silver ore or dore bars into LBMA-grade silver can be uncertain and expensive.