Friday, October 4th 03:33 PM IST

Silver prices to average $17/Oz in 2014, $18 in 2015: Natixis

# silver  # silver ETF  # gold  # photovoltaics  # industry  

Although silver prices have dropped by 8% more than gold, the price could have been much lower had investors resorted to selling silver held in physically backed ETPs.

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LONDON (Bullion Street): Silver prices are expected to average $17 per ounce in 2014 while it could climb to $18 in 2015, according to Natixis. In a half yearly report, Natixis siad that silver prices have remained strongly correlated with gold prices, moving more or less in tandem. Although silver prices have dropped by 8% more than gold, the price could have been much lower had investors resorted to selling silver held in physically backed ETPs.

"For 2014 and 2015, we expect continued high correlation between gold and silverprices," Natixis said.

Highlights
-Photovoltaic demand is expected to the back in Europe
-Improved US economic outlook represents a specific risk to silver prices
-Silver ETP holdings are at 20,000 tons. If silver ETPs show a phenomenon similar to what happened in gold ETFs in H12013, there could be downward pressure on prices.

China is fast becoming a new source of demand for photovoltaic panels as the electricity distribution infrastructure improves and major new photo-voltaic projects begin to come on-stream, and with Japan seeking to replace its lost nuclear energy capacity solar panels are fast gaining attention thanks to the government’s generous FiTs, Natixis said. .

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