Wednesday, July 6, 2011

Silver Terms to Know and Learn!

(Also other items associated with "Silver")

American Silver Eagles - Silver bullion coin of the U.S produced by the U.S Mint. Production of these coins started in 1986. Silver eagles are the world's most bought silver coins today. Silver eagles are one troy-ounce coins with a face value of one dollar and it is 99.9% pure silver. Silver eagle coins may be used to fund IRA accounts.

Ask - Price willing to sell silver.

Assay - Test to determine the fineness, or purity, and consistency of precious metals (and other metals).

Backwardation - This is a market situation where silver prices of forward/futures contract is trading below the current spot price. 

Bank of International Settlements (BIS) - Helps serve as a bank for central banks. BIS has large silver derivatives that any silver investor should take note of.

Bid - Price willing to buy silver.

Bear Market - Prices of silver are expected to decline.

Bull Market - Prices of silver are expected to rise.

Bullion - Silver in bulk form - mass and purity determine value. Generally has a purity of .995 or higher.

Coin Silver - An alloy composed of 90% silver and 10% copper.

Comex - Commodities Exchange

Comomodities Future Trade Commission - Independent agency that regulates futures and option markets.

Face Value - Refers to the dollar (currency) amount of silver.

Fractional Silver - Half ounce, quarter ounce and one-tenth ounce silver products.

Futures - A contract between two parties to exchange silver for a price agreed today and the delivery occurs at a future (later) date.

JP Morgan Chase - Custodian for the SLV.

Legal Tender - A law accepted and recognized for silver to be a form of payment.

London Bullion Market (LBMA) - Wholesale for trading silver (and gold).

Long Position - A person is expecting (wanting) silver to increase.

Metric Ton - 32,151 troy ounces of silver.

Mint - There are both government and private mints that produce silver. Here is a link of the different mints ...

Obverse - Front side of a silver coin that contains the design of the silver coin.

Option - Contract between two parties on silver for a future transaction at a given price. A call option is the right to buy silver. A put option is the right to sell silver.

Over Trade Counter (OTC) - Also refered to as Off-Exchange trading in silver between two parties. OTC is carried out by companies or individuals for buy/sell silver.

Restrike - Reproduction of a previous circulating silver coin.

Rounds - Privately minted by a refinery or mining company.

Short Position - A person is expecting (wanting) silver to decline.

Silver - Has been around for over 5,000 years and is used in many things that are vital to our way of life. Silver is a metal and an element on the periodically table - symbol Ag. Silver has long been valued as a precious metal (money), it is used in silverware, jewelry, coins, mirrors, medical uses, many electronic devices such as: televisions, cell phones, computers etc. Silver has the highest electrical/thermal conductivity of any metal. 

Silver Amalgam - Is a major use in dentistry. Silver is used with mercury, gold, copper or another metals.

Silver Bars - Varies - most common sizes include: 5 ounce, 10 ounce, 100 ounce, 1000 ounce bars.

Silver Coins - Government coins which include: American Silver Eagle, Australian Silver Kangaroo, Australian Silver Kookaburra, Austrian Silver Vienna Philharmonic, British Silver Britannia, Canadian Silver Maple Leaf, Chinese Silver Panda, Mexican Silver Libertad and Russian George the Victorious.

Silver Certificate - The U.S dollar in the past used silver certificates (paper money) that represented one silver dollar payable to the bearer upon demand.

Silver Dollars - .77 troy ounces of silver. Examples; Morgan and Peace silver dollars.

Silver Exchange-Traded Funds - Allows investors quick and easy access to achieve returns and exposure to the silver price without storing coins and bullion.

Silver/Gold Ratio - Refers to number of ounces of silver it take to purchase an ounce of gold.

Silver Market - Silver is a very small global market and the supply/demand is limited.

Silver Math - Proves that there is not enough silver for everyone on planet earth today.

Silver Mining - Mining companies who mine silver. Most silver mined is a by-product of zinc, copper, gold, lead etc mining. There are many silver mining companies for investors to purchase. The shares of these mining companies are related to the mining companies themselves and not the silver price.  

Silver Numismatic Coins - Coins value are determined by their condition, date and rarity. These coins are collected for hobby, occupation and as investments.

Silver Premiums - Percentage paid on silver in the market for lower or higher intrinsic value silver.

Silver Refinery - Silver products are made at many refineries throughout the world.

Silver Price - The spot price of silver is set by the commodity exchanges in New York and London.

Silver Proof's - These are collectibles produced by the U.S Mint (and others). There are coins and sets.

Silver proof's are worth more as collectibles than their face value.

Slabbed Coins - Silver coins placed in plastic to protect from damage. Slabbed silver coins are generally graded by a major grading service - PCGS or NGC etc.

Sterling Silver - Is alloy (contains two or more elements) contains in most cases 92.5% silver and 7.5% other metals (commonly copper). Sterling silver is usually always marked. Common sterling silver include: jewelry, flatware sets, cups and many household/business uses etc.

Silver Solder - A group of alloys containing silver, zinc and copper with at least 10 percent silver. It is used to join other metals together and for brazing.

Silver Trade Dollars - The U.S along with Japan, China and Great Britain have issued trade dollars in their history. Silver dollars in the U.S were issued from 1873 to 1885. Silver trade dollars were used to improve trade and had a face value of one dollar along with .7874 oz of pure silver.

SLV - iShares Silver Trust is the largest silver exchange trade fund for investors to purchase silver today. SLV is located on the New York Stock Exchange. JP Morgan Chase is the custodian of the SLV.

Troy Ounce - Measurement of precious metals or stones. Troy Ounce = 20 pennyweights or 31.1 grams.

Troy Pound = 12 Troy Ounces. Important to note: Regular Pound = 16 ounces and Avoirdupois Ounce 28.35 grams.

Uncirculated - Silver coin in new condition. Can be refered to as "brillant uncircualted" ("BU").

90% Silver - Also referred to as junk silver. U.S silver coinage prior to 1964 which include: half dollars, quarters, dimes, nickels and silver dollars (also included). $1 face value = 2 half dollars, 4 quarters, or 10 dimes contains .715 due to coin wear.

40% Silver - U.S silver coinage reduced to 40% from 1965 - 1969 for Kennedy half dollars.  ... visit this website for pictures of "Silver" (and Gold)

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