| Silver prices on average will decline 14 percent this year as speculation that the Federal Reserve will raise U.S. interest rates spurs a shift to alternative assets, Thomson Reuters GFMS said. Silver will drop to $16.50 an ounce from the average fixing price of $19.08 in 2014, Andrew Leyland, manager of precious- metal demand at Thomson Reuters GFMS, said.
Silver futures declined 2.7 percent last month after the Fed damped speculation that it will delay boosting borrowing costs. Higher rates drive investors to favor assets that pay interest, such as bonds, curbing the metal’s appeal as a store of value, since it generally offers returns only through price gains...............................................Full Article: Source
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