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 one troy ounce of silver with a weight of 31.1035 grams.
The silver ounce is the most commonly used trading and pricing unit for physical silver worldwide. 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 international futures exchanges and at the LBMA fixing in US dollars per troy ounce.
Weight and distinction
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 agreement with the spot price; the Silver Calculator provides the exact melt value.
- Bullion coins (999 / 999.9): Maple Leaf, Vienna Philharmonic (silver), American Eagle - fineness = spot basis, plus 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 only changed the motif.
- Sterling silver cutlery (925‰): in the Coin Weight Checker the fine weight can be calculated from gross weight and fineness.
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 | Minting country | 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 |
| Kangaroo / Nugget (silver) | Australia | 999.9‰ | 1 AUD |
| Krugerrand (silver) | South Africa | 999‰ | none |
Taxation in the United Kingdom
Note: this is not tax or investment advice.
Silver is subject to the full VAT rate of 20% in the United Kingdom. This raises the entry costs relative to investment gold - which is VAT-exempt - considerably. On a sale at a profit, Capital Gains Tax may apply above the annual exempt amount; however, UK legal-tender silver coins from The Royal Mint (Britannia, Lunar, Queen's Beasts) are CGT-exempt with unlimited gains, while non-legal-tender coins and bars are subject to CGT. There is no German one-year speculation period. Please check 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 covers 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 measure in 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 specifics (20% VAT, Capital Gains Tax) in view.