It is expected that this year the price for one ounce of silver will decrease due to the strengthening of the dollar and a decrease in investments in the extractive sector. At the same time, by the end of the year the cost of metal can grow, reports National Jeweler.
In an e-mail to the publication, London analyst and manager of the demand for precious metals at Thomson Reuters GFMS Andrew Leyland said that he expects the average price of silver to fall from about $ 19 per ounce last year to $ 16.50 in the current year.
"The main driver of silver prices this year will not be supply or demand, but the attractiveness of this asset class for investment companies," said Leyland. "We are seeing a further outflow of capital from the mining sector to equity and fixed income securities, and this , coupled with a strong dollar, gives the ground for a weakening of prices. "
The analyst added that Thomson Reuters GFMS expects a silver price increase by the end of the year for the whole dollar to $ 17.50 per ounce.
The London Bullion Market Association (LBMA) released a price forecast for 2015, according to which prices are also expected to fall to $ 16.76 per ounce of silver, which is only slightly higher than the values announced by Thomson Reuters GFMS in its forecast. At the same time during the year prices can range from $ 13.91 to $ 19.36 per ounce of silver.
Analysts named several key factors on which these forecasts are based. Among them - strengthening the dollar, reducing inflation and the slow growth of China and the Eurozone. All these factors lead to lower prices for precious metal.
At the same time, the decline in prices contributes to the increase in demand for jewelry made of silver. Thomson Reuters GFMS announces the beginning of a move away from the production of silver-plated items to the use of sterling silver.