Silver Ounce
Also: Troy ounce silver, oz Ag, Silver ounce, troy oz silver
The silver ounce is the international standard unit for silver trading and refers to a troy ounce of silver weighing 31.1035 grams.
The silver ounce is the world's most common trading and pricing unit for physical silver. What is always meant is the troy ounce (troy oz, short oz t or oz tr) from the historical troy weight system – not the lighter avoirdupois ounce of everyday trade. The current silver price is quoted on the international futures exchanges and at the LBMA fixing in US dollars per troy ounce.
Weight and delimitation
One troy ounce corresponds exactly to 31.1034768 grams – in everyday use rounded to 31.1035 g. The related but heavier avoirdupois ounce (28.3495 g) is expressly not used for precious metals. Anyone needing conversions will find quick help in the Melt Value Calculator.
| Unit | Grams | Ratio to troy ounce |
|---|---|---|
| Troy ounce (troy oz) | 31.1035 g | 1.0000 |
| Avoirdupois ounce | 28.3495 g | 0.9115 |
| 10 grams | 10.0000 g | 0.3215 |
| Tola (India) | 11.6638 g | 0.3750 |
Fineness: what is a "silver ounce" worth?
The spot price refers to fine silver, i.e. 999.0 ‰ (‰ = per mille silver content). Physical products differ in fineness:
- Fine silver bars (999 / 999.9): full correspondence with the spot price; the Silver Calculator delivers the exact melt value.
- Bullion coins (999 / 999.9): Maple Leaf, Vienna Philharmonic (silver), American Eagle – fineness = spot base, plus a premium. The American Silver Eagle has been consistently 999 ‰ fine since its introduction in 1986 (1 oz gross weight = 31.1035 g); the 2021 redesign changed only the motif.
- Sterling silver cutlery (925 ‰): the fine weight can be calculated from gross weight and fineness in the Coin Weight Checker.
Fine weight (g) = gross weight (g) × fineness (‰) ÷ 1000
Melt value = fine weight ÷ 31.1035 × silver price (USD/oz)
Important silver coins in the "1 oz" unit
The classic trading size for investors is the 1-ounce bullion coin. Alongside this there are fractions (½ oz, ¼ oz, 1/10 oz) and larger pieces (2 oz, 5 oz, 10 oz, 1 kg).
| Coin | Country of mintage | Fineness | Face value |
|---|---|---|---|
| Vienna Philharmonic (silver) | Austria | 999 ‰ | €1.50 |
| Maple Leaf (silver) | Canada | 999.9 ‰ | 5 CAD |
| American Eagle | USA | 999 ‰ | 1 USD |
| Britannia (silver) | United Kingdom | 999 ‰ | 2 GBP |
| Kangaroo / Nugget (silver) | Australia | 999.9 ‰ | 1 AUD |
| Krugerrand (silver) | South Africa | 999 ‰ | none |
Taxation in Malta
Note: this is not tax or investment advice.
In Malta, silver is subject to the full VAT rate of 18 % (Directive 2006/112/EC as implemented by the Maltese VAT Act, Chapter 406). This raises the entry cost relative to investment gold – which is VAT-exempt – considerably. On a sale at a profit, Malta levies no capital gains tax on private disposals of movable assets such as silver: Maltese CGT applies only to specific assets (immovable property, securities, business interests). There is no German-style speculation period or holding requirement. Please check the details of tax thresholds and allowances with a tax adviser.
Market structure and price formation
The silver price in USD/oz is set twice daily by the LBMA Silver Price fixing (electronic auction) and is regarded as the global reference. In parallel, futures contracts are quoted on the COMEX (Chicago), where the standard silver contract comprises 5,000 troy ounces. Private investors typically buy at a dealer price = spot price + premium (agio), which covers minting, storage and dealer margin.
In brief
The silver ounce is the indispensable unit of measurement of every silver market – from the single coin to the LBMA Good Delivery bar. Anyone buying or valuing silver should always distinguish between gross weight and fine weight and keep the tax particularities (18 % VAT, no capital gains tax on private disposals) in view.