Silver prices for the 10 months of 2013 averaged $ 24.51 per ounce, which is almost 21% below the corresponding figure for the same period last year, according to the mid-term review of the silver market of Thomson Reuters GFMS, Rapaport reports. GFMS predicts that the average price of silver for the year will be $ 24.24 per ounce.
GFMS notes that the dynamics of silver prices often reflect factors affecting the gold market, and also depends on the state of the industrial sector, and these trends will continue in 2014. As of November 15, gold prices fell 25% on a year-on-year basis, to $ 1,288.50 an ounce.
In the interim review of GFMS, it is reported that industrial and jewelry demand for silver in 2013 will grow by 6% compared to 2012.
Jewelery demand for silver is particularly high in rapidly developing countries, for example in India, where consumers are forced to move away from buying gold.
GFMS explains that the fall in silver prices is largely due to the same factors that affect the gold market, in particular the policy of the Federal Reserve, which encourages investors to move from safe assets to stocks.
However, GFMS notes that throughout the year capital outflows from gold exchange-traded funds were observed, while the assets of silver funds continue to grow and as of October 31 reached a record level of 655 million ounces.