Demand for silver will post a 7% decline in 2014 because of a slower pace of buying by jewelers and industrial fabricators in the first three quarters of the year, metals consultant Thomson Reuters GFMS said on Tuesday.
Harmonized European sales tax rates that started in January have driven up retail silver investment product prices, reducing demand on the continent, the Thomson Reuters unit said.
Thomson Reuters GFMS said it expected total physical demand, which includes jewelry, coins and bars, silverware and industrial fabrication, to fall 6.7% to 1,004.5 million ounces (31,243.44 tons) in 2014 from a record high of 1,077 million ounces (33,498.44 tons) last year.
Japanese silver saw a 4.9% increase on Tuesday, November 18, reaching JPY 605.00 ($5.19) per 10 grams and making it the biggest upwards shift of the day. The price of Indian silver fell 2.2% to INR 36,517 ($590.99) per kilogram. Chinese silver prices saw a 1.3% decline to CNY 3,480 ($568.29) per kilogram. US silver gained 0.5% to finish at $16.14 per ounce.
The price of Japanese gold bullion finished the day at JPY 4,422 ($37.91) per gram following a 2.5% increase. At $1,187, the price of US gold bullion finished the market day up 0.3% per ounce. Chinese gold bullion finished the day up 0.1% to CNY 234.20 ($38.25) per gram. At INR 26,637 ($431.09) per 10 grams, the price of Indian gold bullion was essentially unchanged.
After a 0.9% increase, Japanese platinum bar finished the day at JPY 4,488 ($38.47) per gram. Chinese platinum bar finished the day down 0.8% to CNY 252.00 ($41.15) per gram. The price of US platinum bar declined 0.3% to $1,196 per ounce.
Chinese palladium bar closed 0.6% lower at CNY 169.00 ($27.60) per gram. The price of US palladium bar rose by 0.3% to $767.00 yesterday after remaining flat for two days. The price of Japanese palladium bar remained essentially flat at JPY 2,850 ($24.43) per gram.