1 ounce of London silver is approximately equal to 31 grams. The "ounce" used to measure the weight of London silver is a special unit of measurement in the international precious metals market. Its full name is troy ounce, and its English name is troy ounce. It is similar to the Western Japanese ounce. The unit commonly used to calculate weight, the troy ounce, is also different. One troy ounce is equal to approximately 31 grams.
Since the weight of one standard London silver contract is 5,000 ounces, the weight of one London silver contract is approximately equivalent to 15.5 kilograms, which is more than ten kilograms of silver. Based on the current silver price of about US$23, one contract The total value is up to US$115,000.
Without London Silver as an investment tool, investors would need to use sufficient funds and find enough storage space to participate in the purchase and sale of silver of the same weight. However, if they do London Silver, they do not need to conduct physical transactions. The transaction is completely electronic, and under the margin system, investors only need to pay 2% of the contract value to fully own the trading rights of this contract.
In this way, the capital utilization efficiency of London Silver investors will be greatly improved instantly, and only a small number of positions need to be used to participate in the transaction, and the remaining investment funds can be reserved for backup or invested in other fixed income Among the various types, it can reduce the risk in the investment portfolio. When necessary, it can be used to add margin to reduce the risk level of the account.