Every silver price quote actually contains two prices, not one. There is a price at which someone will buy silver from you, and a price at which someone will sell it to you. The gap between them is the silver bid ask spread. Understanding it helps you see what a trade really costs and why the price on a chart is not always the price you pay.
What bid and ask mean
The bid is the highest price a buyer is currently willing to pay. If you want to sell silver right now, the bid is roughly what you would receive.
The ask, sometimes called the offer, is the lowest price a seller is currently willing to accept. If you want to buy right now, the ask is roughly what you would pay.
The ask is almost always higher than the bid. That difference is the spread. Market makers, dealers and exchanges earn part of their income from it. In return, they stand ready to trade at any moment, which keeps the market liquid.
How the silver bid ask spread works: an example
Take a hypothetical quote of $29.95 bid and $30.05 ask per troy ounce. These figures are for illustration only, not a current price.
- If you buy one ounce at the ask, you pay $30.05.
- If you then sell it straight back at the bid, you receive $29.95.
- The $0.10 difference is the spread, a cost of about 0.33% of the price.
In other words, the price has to rise by at least the spread before a buyer breaks even. That is before any other fees.
Which price does a chart show?
Most silver charts show a single line. Depending on the provider, that line may track the bid, the ask, the midpoint between them, or the last traded price. Charts rarely make this obvious, so check the provider’s notes if precision matters.
For most purposes, the difference is small in the wholesale market. However, it helps explain why two websites can show slightly different “spot” prices at the same moment. For background on where the spot price comes from, see our guide to silver spot vs futures.
Why spreads differ across markets
Spreads are not fixed. They depend on where and how you trade.
| Market | Typical spread | Why |
|---|---|---|
| COMEX futures | Narrowest | Large volumes, many competing traders |
| Wholesale London (OTC) | Narrow | Bank-to-bank trading in large bars |
| Silver ETFs | Usually narrow for large funds | Exchange-traded, with market makers |
| Retail coins and bars | Widest | Small sizes, handling, storage and dealer costs |
These are general patterns, not guaranteed figures. Actual spreads change with market conditions and vary by dealer.
When silver spreads widen
Several things can make spreads wider:
- Volatility. When prices move fast, dealers widen spreads to protect themselves.
- Thin trading hours. Liquidity is lower when major markets are closed, such as late in the US evening or over holidays.
- Small or unusual products. Fractional coins, collectible pieces and odd bar sizes are harder to resell, so dealers quote wider spreads.
- Tight physical supply. If dealers struggle to source metal, the ask can rise faster than the bid.
Spread vs premium: not the same thing
The spread is the gap between buying and selling prices. A premium is the amount a product costs above the spot price. For instance, a retail coin might sell at a premium over spot and have a buyback price below spot. Both costs matter, but they measure different things. Meanwhile, the daily LBMA silver price benchmark is a single auction price, so it has no quoted spread of its own.
Frequently asked questions
What is the bid price for silver?
It is the highest price a buyer is currently willing to pay. It is roughly what you would receive if you sold.
What is the ask price for silver?
It is the lowest price a seller is currently willing to accept. It is roughly what you would pay if you bought.
Why is the ask higher than the bid?
The gap pays market makers and dealers for being ready to trade at any time and for the risk they carry.
How do I compare silver spreads?
Compare the buy and sell prices a dealer quotes at the same moment, for the same product and quantity. Expressing the gap as a percentage of the price makes comparison easier.
Sources
- ICE Benchmark Administration: Administration of the LBMA Silver Price
- LBMA: The OTC Guide
- CME Group: Silver Futures Contract Specs
This article is general information, not financial advice. Example prices are for illustration only. 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.