Meanwhile, COMEX May silver ended down 14.5 cents at $6.190 an ounce, after seeing a three week high at $6.510
Tuesday.
But COMEX warehouse silver stocks fell 1.030,883 ounces to 89,917,523 ounces in Tuesday night's data.
In the bullion market, spot silver ended quoted $6.24/27, compared to the London Wednesday fix at $6.33.80, and the New
York close Tuesday around $6.41/44.
In the physical market, silver's forward price curve remained in backwardation and one month lease rates remained high
around 11.00 pct.
''Silver's bounce looks to be fading again, as last week's report hyping the potential for increased silver demand for battery
use starts to fade from memory,'' Refco's Steel said.
Last week a research report suggested the potential demand for silver-zinc battery technology may be one reason why U.S.
billionaire Warren Buffett bought 129.7 million ounces of silver in recent months. Buffett indirectly has an equity stake in
battery maker Duracell.
But a Duracell spokesman Tuesday said Duracell was not involved in developing such technology.
''Many batteries, both rechargeable and non-rechargeable, are manufactured with silver alloys as the cathode,'' according to
the Washington DC-based Silver Institute's annual silver survey.
''Although expensive, silver cells have superior power-to-weight characteristics than their competitors and the most
common these batteries is the small button shaped silver oxide cell (approximately 35 pct silver by weight) used in watches,
cameras and similar electrical products.''
Demand for silver for use in batteries and electronics rose 8.6 pct in 1997, according to industry consultants, CPM Group in
New York. NYMEX April platinum ended down $7.80 at $403.00 an ounce, after seeing a six month high at $423.50
Tuesday. |
