If you’ve been watching silver prices, you’ve probably noticed something confusing lately: the Kitco live silver price is showing around $51.88–$52.00, while the COMEX silver futures sit closer to $50.28.
At Scarsdale Coin, we get asked this question all the time — why don’t the prices match?
Here’s the simple explanation.
🏛️ COMEX = The Paper Silver Market
The COMEX (Commodity Exchange, part of the CME Group) is where traders buy and sell futures contracts — agreements to buy silver at a later date.
Each contract represents 5,000 ounces and is often settled on paper, not with physical metal.
This means the COMEX price reflects expectations about future value, not what someone pays for real silver today.
It’s influenced by:
- Market speculation
- Interest rates
- Economic outlook
- Dollar strength
So while it’s important as a benchmark, it’s not the same as the real-world, physical price of silver.
💰 Kitco = The Physical Spot Market
Kitco’s live silver price reflects what’s happening in the physical market — what large wholesalers, refiners, and institutions are paying right now for deliverable metal.
It’s based on real-time buying and selling of 1,000-ounce bars and immediate delivery transactions.
That’s why Kitco’s spot price is often a better indicator of what physical dealers like Scarsdale Coin are working with day to day.
⚖️ Why There’s a Gap Between COMEX and Kitco
Right now, the Kitco spot price is about $1.50 to $2 higher than the COMEX futures price.
This difference — known as a physical premium — is caused by a few things happening all at once:
- Refineries are overstocked and slowing new intake because prices have risen so quickly.
- Supply chains are backed up as refiners and mints catch up with demand.
- Physical silver is harder to get immediately, so dealers are paying more to secure it.
In other words, the paper market (COMEX) says silver is worth $50, but real buyers are paying $52 or more to get actual metal today.
🔄 Backwardation = Tight Physical Market
Normally, futures trade above spot — that’s called contango.
But when the spot price is higher than the futures price, that’s called backwardation, and it signals a tight physical supply.
This tells us that:
- Holders of real silver aren’t eager to sell.
- Immediate delivery is commanding a premium.
- The physical market is under stress from rapid price movement.
🧭 What This Means for Silver Buyers
If you’re shopping for silver coins, bars, or rounds right now, don’t be surprised if prices seem well above COMEX — that’s the true cost of physical silver today.
Refiners need time to catch up, and until they do, physical premiums will likely remain elevated.
At Scarsdale Coin, we’re continuing to buy and sell based on real physical market conditions, not paper quotes.
Our goal is to keep customers informed and help you understand what’s happening behind the numbers you see online.
📈 In Short
- COMEX = Paper price (futures trading)
- Kitco = Physical spot price (real metal market)
- Current premium = Refinery bottlenecks + strong demand
As the market normalizes, these two prices will get closer again. Until then, physical silver is in high demand — and commanding a well-deserved premium.
🪙 About Scarsdale Coin
Scarsdale Coin specializes in buying, selling, and evaluating gold, silver, and rare coins.
We’re always happy to explain how the real metals market works — whether you’re selling a few coins or an entire collection.
Visit us in person or contact us online for current buy/sell quotes and insights.
