Define the exchange-rate direction
Silver is commonly quoted in US dollars per troy ounce; LBMA documents this convention for its silver benchmark. To translate a dollar metal value into another currency, multiply it by the number of local currency units required to buy one dollar. State that direction explicitly. A rise in this exchange-rate measure means the dollar buys more local currency units. Quoting the reciprocal rate would reverse the meaning of an increase.
Multiply the two changes
Consider a purely hypothetical ounce initially worth USD 100 when one dollar equals 2 local currency units. Its translated value is 200 units. Now suppose dollar silver rises 10% to USD 110, while local currency units per dollar rise 5% to 2.10. The translated value becomes 231 units: 110 multiplied by 2.10. Against the initial 200, that is a 15.5% increase. The calculation is 1.10 multiplied by 1.05, minus one.
The second effect can subtract
The currency component can also offset a metal gain. If the same 10% dollar-price rise accompanies a 5% decline in local currency units per dollar, the combined factor is 1.10 multiplied by 0.95, or 1.045: a 4.5% local gain. Currency changes therefore do not simply add to percentage metal returns. SEC investor guidance explains that exchange-rate movements can increase or reduce translated investment returns, even when the underlying asset moves in another direction.
Translation is not a retail quote
These examples isolate the same quantity of metal over the same period. They exclude purchase premiums, resale discounts, currency-conversion spreads, storage charges and tax. An actual product may also hedge currency exposure or use terms that alter the translation. Check those documents before applying the simple relationship. The example does not assert anything about today’s exchange rates or any currency peg; its purpose is to make the quotation convention and multiplication visible.
Sources & further reading
Sources checked 14 November 2026. Reference organisations do not endorse this website. Price examples are hypothetical and educational.