Investing in Gram Silver: Pros and What to Watch

When people think of saving in precious metals, gold usually comes first, but silver has been attracting more and more savers in recent years. For anyone who wants to save regularly with a small budget in particular, gram silver is an accessible option. Silver is both a precious metal and an important industrial raw material, so its price depends on a different set of factors.

The silver price is more volatile than gold. Before turning to silver, you need to know how its price is formed, the right purity grade and the buy/sell spread. In this guide we explain what to watch when buying gram silver.

How is the silver price formed?

Silver is priced in a similar way to gold. On international markets, its price is set per ounce in dollars. As with gold, 1 ounce of silver is about 31.10 grams. This ounce price is combined with the dollar rate to find the Turkish lira value of a gram of silver.

The silver price is affected by interest rates, inflation expectations and central bank decisions. Gold and silver often move in the same direction, but silver's percentage moves are usually sharper. You can follow the current silver price on our market page.

What to check when buying physical silver

The most important criterion when buying physical silver is purity. Packaged gram silver and silver bars made for saving are 999 fine, that is 999 parts per thousand. Because their craftsmanship cost is very low, this is the form most often chosen for saving.

Silver jewellery, on the other hand, is usually made in 925 sterling silver. We cover this in what is 925 sterling silver. Jewellery includes craftsmanship and design costs, which are not refunded when you sell. If your goal is saving, 999 fine packaged products are more suitable.

How industrial demand affects the price

One of the most important features that sets silver apart from gold is that it is also a widely used industrial metal. About half of global silver demand comes from industry. Silver is the best electrical conductor of all metals, which makes it an important raw material for the technology sector. It is used in solar panels, electronic devices, the electronics of electric vehicles and medical equipment.

When industrial demand rises, interest in silver can rise too. So the silver price is affected not only by financial developments but also by global production and industrial trends. In economic slowdowns, industrial demand may fall and put pressure on the price.

The buy/sell spread on gram silver

There is also a gap between the buying and selling price of gram silver. Because the gram price of silver is much lower than gold, this gap is wider in percentage terms. Production, packaging and transport costs weigh more heavily against a low gram price.

That is why silver is not suited to buying and selling over a short period. The price needs to rise enough to cover the spread. You can see today's value of a past purchase with the calculator on our tools page.

Gold and silver compared

Spreading savings across different metals is a method some people use to balance risk. You can see our gram silver and gold options up close at our store in Ümraniye, Istanbul. Our address is on the contact page.

Storing physical silver

Silver tarnishes more easily than gold. Sulphur and moisture in the air can discolour its surface over time. We explain why in why does silver jewellery tarnish.

Keeping packaged gram silver in its original packaging protects the surface and makes selling easier. Storing unpackaged silver somewhere dry, in resealable bags, slows tarnishing.

This article is for general information only and is not investment advice.

Frequently Asked Questions

Is gram silver suitable for short-term trading?

Usually not. The silver price can swing sharply and the spread is wider than gold's. So silver is mostly considered for long-term saving.

Is silver in a bank the same as physical silver?

Both follow the value of silver, but silver in a bank is a book entry and you never hold it. Physical silver is in your hands. Because physical products carry production and packaging costs, their price can differ from the bank price.

What should I look for when buying gram silver?

Choosing packaged products that show purity and weight makes selling easier. Remember to ask for a receipt showing the weight and purity of what you buy.

Do you lose value when selling gram silver?

Packaged gram silver has a very low craftsmanship cost, so there is no craftsmanship loss when you sell. But because of the spread, if the price has not risen you will receive less than you paid.