Silver
Also: Ag, Argentum, Silver metal
Silver (Ag) is a white-lustrous precious metal with the highest electrical conductivity of all elements and is used both as an investment metal and in industry, photography and medicine.
Silver is one of the oldest known metals in human history. More than 5,000 years ago it was already being mined in Asia Minor and on the Aegean island of Siphnos. Today silver is far more than a mere jewellery or coinage metal: around 55–60 % of annual world production flows into industrial applications – from photovoltaics through electronics to medicine. At the same time it is regarded as an investment metal and a historically proven store of value.
Chemical and physical properties
Silver (element symbol Ag, from the Latin Argentum) sits in group 11 of the periodic table and belongs to the transition metals. It has the highest electrical conductivity of all known elements, surpassing even copper. Its thermal conductivity and its reflectivity in visible light are also outstanding – freshly polished silver reflects up to 99 % of the incident light.
| Property | Value |
|---|---|
| Density | 10.49 g/cm³ |
| Melting point | 961.8 °C |
| Electrical conductivity | 62.9 × 10⁶ S/m |
| Mohs hardness | 2.5–3 |
| Atomic weight | 107.87 u |
| Colour | white-lustrous (silvery) |
A notable feature is so-called tarnishing: in humid air, silver reacts with traces of sulphur to form black silver sulphide (Ag₂S). This process is reversible and does not impair the material value. Pure silver is resistant to oxygen and most acids; it does, however, dissolve in nitric acid and in hot concentrated sulphuric acid.
Finenesses and alloys
For practical use, silver is almost always alloyed, since fine silver (999) is too soft for mechanically stressed applications.
| Designation | Fineness | Typical use |
|---|---|---|
| Fine silver | 999 ‰ | Investment coins, bars |
| Britannia silver | 958 ‰ | British investment coins |
| Sterling silver | 925 ‰ | Jewellery, cutlery |
| 835 silver | 835 ‰ | Historical European cutlery |
| 800 silver | 800 ‰ | Older European cutlery |
To calculate the pure silver weight in an alloyed item, the following applies:
Fine weight = gross weight × (fineness ‰ ÷ 1,000)
Example: 100 g sterling silver (925)
→ 100 × 0.925 = 92.5 g fine silver
The Silver Calculator automatically determines the melt value on the basis of the current silver price.
Extraction and world production
Silver is predominantly obtained as a by-product of copper, lead and zinc mining. Only a small part comes from pure silver mines. The most important producing countries are Mexico, Peru, China, Russia and Poland. According to the World Silver Survey, worldwide mine production is around 820–850 million troy ounces per year (as of the current decade). In addition there is a significant share from the recycling of scrap silver, electronic waste and photographic materials.
After extraction, doré bars (impure raw metal) are refined into fine silver in refineries. Large refiners such as Heraeus, Umicore or PAMP Suisse subsequently mint the purified metals into standard bars or coin blanks.
Silver as an investment metal
As an investment metal, silver is held in the form of bars and coins. Well-known bullion coins are the Vienna Philharmonic, the Maple Leaf, the American Eagle and the Britannia – all with a fineness of 999 ‰.
Compared to gold, silver typically shows higher price volatility. The relationship between the two metal prices is expressed by the gold-silver ratio: it indicates how many troy ounces of silver are needed to buy one troy ounce of gold. Historically this figure fluctuated between 15 and over 100.
Tax note: in Malta, the purchase of silver bars and coins is subject to the full VAT rate of 18 % (Directive 2006/112/EC as implemented by the Maltese VAT Act, Chapter 406). Gains from the disposal of physical silver by a private individual are not subject to capital gains tax in Malta, since Maltese CGT applies only to specific assets (immovable property, securities, business interests) and not to movable assets such as precious metals; there is no German-style speculation period (this is not investment or tax advice; please clarify individual matters with a tax adviser). Compare also: VAT on silver.
Industrial importance
Industrial demand for silver is a significant price driver that distinguishes silver from other precious metals:
- Photovoltaics: silver is indispensable for solar cell contacts. The rapid expansion of renewable energy increases structural demand.
- Electronics: conductor tracks, contacts, RFID tags and connection solders contain silver because of its unique conductivity.
- Medicine: silver ions act antimicrobially; applications range from wound dressings to coatings of medical devices.
- Photography: despite the decline due to digital photography, silver halide remains relevant in special areas (X-ray, film).
- Catalysis: silver is used as a catalyst in ethylene oxide synthesis.
The dual role as an industrial and investment metal makes silver more cyclically sensitive than gold: in economic downturns, industrial demand can fall and additionally weigh on the price.
Price formation
The silver price is quoted in US dollars per troy ounce (troy oz). The benchmark is the LBMA Silver Price, set daily by auction in London. The current silver price can be retrieved in real time; historical trends can be viewed under historical precious metal prices.
Factors influencing the price include, among others: US dollar strength, real interest rates, industrial demand development (especially the solar sector), mine production, recycling volume and speculative positioning on the COMEX.
In brief
Silver is the only metal that combines outstanding industrial relevance with a millennia-old role as a store of value. Anyone who follows the silver price should always keep both dimensions – the economic cycle and capital investment – in view. The Silver Calculator and the gold-silver ratio are practical aids for orientation.