GFMS Sees Physical Silver Demand Falling 6.7 Percent in 2014

Bloomberg reported that according to Thomson Reuters GFMS, physical demand for silver will sink 6.7 percent in 2014 on the back of a slump in the buying of bars and coins.

As quoted in the market news:

Consumption will fall to about 1 billion ounces from 1.08 billion in 2013, according to a Thomson Reuters GFMS report released today on behalf of the Washington-based Silver Institute.

Silver futures have dropped 16 percent this year after plunging 36 percent in 2013. The Federal Reserve last month announced it would end its economic stimulus after gains in the labor market, damping demand for the metal as an inflation hedge. The price slump in 2014 helped boost physical demand with the U.S. Mint this month halting sales of American Eagle silver coins for more than a week after running out. In early November, coins sales surged to 1.26 million ounces.

Click here to read the full Bloomberg report.