According to the recently released “World Silver Survey,” investors are becoming an increasingly important factor in silver price fluctuations. As the demand for raw materials declines, investors are playing a more pivotal role in silver market motion.
The demand for physical silver for production of silverware, and accomplishing photographic processes has been on the decline for many years. Demand for silver jewelry dropped by approximately ten percent in 2011. However, the report, commissioned by the Silver Institute shows general fabrication demand for silver declining in all categories, except metal and coin production. These categories constitute investments, says Thomson Reuters GFMS, which produced the annual report.
Total worldwide industrial silver demand decreased in 2011, for all countries, except China. Meanwhile, silver production grew in Mexico, Poland and China, increasing world silver supplies by about three percent.
Surprisingly, 2012 investment interest in silver is displayed mostly by smaller purchasers. If economies heal in the coming year, risk appetite for silver may be revived.
http://silverinvestingnews.com/11856/fate-of-silver-lies-in-investors-hands.html
