Silver jewellery fabrication in 2012 dropped a mere 0.5 percent to 185.6 Moz, from 2011’s 186.5 Moz, compared to the four percent decline seen in gold jewellery production last year, according to Thomson Reuters GFMS’ World Silver Survey 2013.
The jewellery sector accounted for 22 percent of silver demand in 2012, second only to industrial applications. Total silver fabrication demand in 2012 dipped to 846.8 Moz, reflecting losses in key areas such as industrial applications, coins & medals and photography.
Neil Meader, head of precious metals research and forecasts at Thomson Reuters GFMS, which produced the Silver Institute-commissioned report, said demand for silver jewellery has been extremely resilient over the last 10 years despite sharp fluctuations in the price of the metal.
“(Much of the decline in 2012 was due to) relatively soft markets in the Western world, particularly in Europe where you are looking at double-digit losses. But a lot of that was countered by some very strong consumption growth coming through from India and China, clearly benefitting from rising consumer incomes. The slightly softer price last year, no doubt, helped,” said Meader in an audiocast to present the survey’s results.
Meader expects silver demand for jewellery fabrication to possibly hit a three-year-high this year thanks to improving consumer sentiment, but notes that price remains a substantial driver of demand, especially in the cases of China and India.
The average price of silver last year was US$31.15 per ounce, the second highest on record after 2011’s average. The first quarter of 2013 saw an average silver price of US$30.11. Meader said the silver price might rally to around US$32 in the second half of 2013, resulting in an estimated average price of just under US$29 for the entire year.
No comments:
Post a Comment