A system including a contact tip that includes an arcing surface, a base surface, and a graded structure is presented. The graded structure includes a first region comprising a first surface proximate to the arcing surface, a second region comprising a second surface proximate to the base surface, and an intermediate region disposed between the first region and the second region. A concentration of silver in the graded structure decreases from the first surface to the second surface. A method of forming a contact tip includes preparing starting materials for a first region, an intermediate region, and a second region of the contact tip. The starting materials of the first, intermediate, and second regions are sequentially added to a container to form a graded blend of starting materials. The graded blend of starting materials are compacted and heat-treated to form a contact tip having a graded structure.