Silver
Also: Ag, Argentum, Silver metal
Silver (Ag) is a bright white 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 coin 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, even surpassing copper. Its thermal conductivity and reflectivity in visible light are also outstanding - freshly polished silver reflects up to 99% of 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 | bright white (silvery) |
An important characteristic 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 affect the material value. Pure silver is resistant to oxygen and most acids; however, it dissolves in nitric acid and in hot concentrated sulphuric acid.
Fineness levels and alloys
For practical use, silver is almost always alloyed, since pure silver (999) is too soft for mechanically demanding 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 continental cutlery |
| 800 silver | 800‰ | Older European cutlery |
For calculating the pure silver weight in an alloyed item:
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 based on 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 share comes from pure silver mines. The most important producing countries are Mexico, Peru, China, Russia and Poland. According to the World Silver Survey, global mine production is around 820-850 million troy ounces per year (current decade). In addition there is a significant share from recycling of scrap silver, electronic scrap and photographic materials.
After extraction, doré bars (impure raw metal) are refined into fine silver at refineries. Large refiners such as Heraeus, Umicore or PAMP Suisse then mint the refined 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 with gold, silver typically shows higher price volatility. The ratio of both 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 the United Kingdom, the purchase of silver bars and coins is subject to the full VAT rate of 20%. Capital gains from silver may be subject to Capital Gains Tax above the annual exempt amount; however, UK legal-tender silver coins from The Royal Mint (e.g. Britannia, Lunar, Queen's Beasts) are CGT-exempt with unlimited gains. There is no German one-year speculation period (this is not investment or tax advice; please clarify individual matters with a tax adviser). See also: VAT on silver.
Industrial significance
Industrial demand for silver is a key 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 solder joints contain silver due to its unique conductivity.
- Medicine: silver ions are antimicrobial; applications range from wound dressings to coatings on medical devices.
- Photography: despite decline through digital photography, silver halide remains relevant in specialist 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: during economic downturns, industrial demand can fall and place additional pressure 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 in London by auction. 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: US dollar strength, real interest rates, industrial demand trends (especially the solar sector), mine production, recycling volumes and speculative positioning on the COMEX.
In brief
Silver is the only metal to combine outstanding industrial relevance with a millennia-old role as a store of value. Anyone tracking the silver price should always keep both dimensions - the economy and the investment - in view. The Silver Calculator and the gold-silver ratio are practical orientation aids.