The price of silver and gold is determined by the current spot price per troy ounce set by the world’s major markets. Due to the forces of the international market, this spot price fluctuates throughout the day whenever the market is open and freezes once it closes.
The current market prices of all precious metals are determined by both the supply and demand, as well as the exchanges of these metals, which are tracked by the world’s bullion markets. The largest markets are the London gold and silver markets, and the Comex exchange futures markets in New York. Through dealer arbitrage, these markets are able to stay closely in line with each other, and many other markets base prices off of these markets.
The spot price, or current market price, is used for the buying or selling of silver as a reference point for how much a metal is worth at a given time. Although the spot price displays the current value of each metal, most dealers mark-up gold and silver by selling the metals slightly over spot price, usually at a set percentage over the current market price. This mark-up is what allows dealers to cover their costs and make profits. With gold and silver, the more troy ounces purchased at one time the lower the mark-up percentage on each ounce.