If you compare silver prices across a few websites, you may notice two different numbers. One is labelled “spot” and the other “futures”. They are usually close, but rarely identical. This guide explains silver spot vs futures pricing: what each price means, where the spot price you see actually comes from, and why the gap between them changes over time.
What is the silver spot price?
The spot price is the market price for one troy ounce of silver for immediate delivery, quoted in US dollars. “Immediate” in practice means settlement within a couple of business days, not a date months away.
However, there is no single exchange that publishes an official spot price. Instead, data providers build it from live trading. According to Kitco, the quoted spot price comes from the most actively traded silver futures contract together with over-the-counter dealing. Dealers such as APMEX and JM Bullion describe the same approach: they base spot on the near-term, most active COMEX contract. As a result, the “spot” figure on most charts is closely tied to the futures market.
What is a silver futures price?
A futures contract is an agreement to buy or sell silver at a set price on a set future date. On COMEX, part of CME Group, the standard contract covers 5,000 troy ounces of silver. Contracts are listed for different delivery months, so at any moment there is a whole series of futures prices, one for each month.
The contract closest to delivery that trades the most is called the front month. Later months are called deferred or forward months. Together, these prices form what traders call the futures curve.
Silver spot vs futures: why the prices differ
The main reason for the gap is the cost of carry. Holding physical silver until a future date costs money. You need to finance the purchase, and you need to store and insure the metal. So a price for delivery in six months normally sits above the price for delivery now, to cover those costs.
When futures prices are higher than spot, and later months are higher than nearer months, the market is in contango. For silver, this is the usual state, because the metal is plentiful in storage and costs money to hold.
Occasionally, the opposite happens. If buyers need physical silver urgently, near-term prices can rise above later ones. This is called backwardation. It often signals short-term tightness in available metal. Because it is unusual for silver, analysts tend to watch closely when it appears.
How the two prices stay close
Standard COMEX silver futures are physically settled. That means a contract held to expiry leads to actual delivery of silver. As a result, the front-month price is pulled towards the spot price as delivery approaches. If the two drifted far apart, traders could buy in one market and sell in the other to capture the difference. That arbitrage keeps the gap in check.
Most futures traders close their positions before delivery. Even so, the possibility of delivery is what anchors futures prices to the physical market.
Spot, futures and the LBMA benchmark at a glance
| Price | What it represents | How often it changes |
|---|---|---|
| Spot price | Silver for immediate delivery, built from the most active futures contract and OTC trading | Continuously while markets trade |
| Futures price | Silver for delivery in a specific future month | Continuously during exchange hours |
| LBMA silver price | Daily London benchmark set by auction | Once per London business day |
For more on the daily London benchmark, see our guide to the LBMA silver price.
Which price should you look at on a chart?
It depends on your question. If you want to know roughly what silver is worth right now, the spot price is the usual reference. Meanwhile, if you want to see what the market expects to pay for delivery later, the futures curve is more useful. And if you are checking a contract or fund valuation, the LBMA benchmark may be the price that matters.
Whichever you use, check the label on the chart. A chart marked “SI” or “COMEX silver” usually shows a futures contract, not spot. Also check the unit. Almost all silver prices are per troy ounce, as our troy ounce silver guide explains.
Frequently asked questions
Is the silver spot price the same as the futures price?
No. They are closely linked, but futures prices usually include the cost of carrying silver until the delivery date.
Where does the silver spot price come from?
Data providers such as Kitco and APMEX derive it mainly from the most actively traded COMEX futures contract, together with over-the-counter trading.
What does contango mean for silver?
Contango means later-dated futures prices are higher than nearer ones. It is the normal state of the silver market.
What does backwardation mean for silver?
Backwardation means near-term prices are above later ones. For silver, it is unusual and can point to short-term tightness in physical supply.
Sources
- Kitco: Silver Price Today
- APMEX: How Is the Silver Spot Price Set?
- JM Bullion: Silver Price Today
- CME Group: COMEX Rulebook, Chapter 112, Silver Futures
This article is general information, not financial advice. Futures trading carries significant risk. Prices shown on any site may lag the live market, so check an official source before making any decision.
Written and reviewed by the SilverPriceCharts.com editorial team. Sources are linked above.