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Troy Ounce Silver Value

What is a troy ounce?

Trading markets determine the price of silver on the basis of a troy ounce, which is a little more than the commonly used avoirdupois ounce. Silver was historically used as a standard for currency, but today it is being increasingly being used in industries, as it is an excellent conductor. The troy Ounce silver value is an old form of measurement of silver used in trading websites. Troy weight is a system of weights and measures that was used in Troyes in France. This system of weights has troy pounds, troy ounces and troy pennyweights in that order. For conversion purposes, it will suffice to know that one troy ounce equals 31.103 grams.

Bidding by Traders

You can buy silver from trade exchanges where the bidding is done in one troy ounce silver value. You can even buy bars ranging from 100 troy ounces to 5000 troy ounces. The silver can be safely stored in bank safety deposit vaults or other ways. You can purchase such silver on very small margins, in case of the large trading exchanges. However, proper analysis of market trends and history should be done, in order to hold on to your silver till the prices have risen substantially above your purchase price, in order to give you a good return on your investment.

The commodity markets help to determine the troy ounce silver value, and this is done by markets like COMEX and MONEX, where many traders do the bidding for silver contracts. The bid prices placed by traders may be affected by the current demand and supply situation. The supply of silver in turn depends on the industrial and storage use, as well as the price fluctuations of other commodities and metals in the market, such as oil, gold, dollars and so on.

The Dollar Effect

The value of major currencies of the world, such as the dollar, can affect the troy ounce silver value, and this is because the reserve currency of the world is represented by the dollar. Most nations use the dollar as a standard for measuring the worth of their currencies. Countries pay off debts and borrow money based on the dollar value and all currencies are measured in terms of their dollar equivalent. Thus, if traders while bidding lose faith in the dollar, then the price of silver can go up, as people start investing in it as a form of hedging against inflation, because of the value of the dollar starts falling during inflation. Ordinary people as well as collectors start investing in a safe haven like gold and silver, in such conditions, thus sending up the troy ounce silver value.



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