According to LBMA survey silver prices are likely to fall by 3.2 percent this year while gold is supposed to grow by 12.3 percent.
Silver can bounce back anytime during the year and remained a hot favourite for investors despite LBMA survey showed the white metal has the least optimistic outlook in terms of price, they added.
Many observers believe silver manufacturing during this year will decrease sharply due to various reasons and the climbing industrial demand for the metal could trigger a price hike.
They said a lot of appearing out of mines today is used for industrial purposes rather than being changed into bullion. If silver manufacturing drops off below industrial demand, this could guide spike silver prices.
They argued that clever investors are aware of this fact but only decide to buy silver if they suspect that the silver market in particular is going to move up quickly.
According to LBMA survey silver prices are likely to fall by 3.2 percent this year while gold is supposed to grow by 12.3 percent.
Participants told the LBMA they expected silver to average $33.98 an ounce in 2012, compared with an average price of $35.11 last year.
The LBMA's survey of 26 contributors showed all but three participants expected gold to hit an all-time high in 2012, with a majority of 19 of them forecasting gold to reach a high above $2,000 an ounce.
They also forecast gold to average $1,766.00 an ounce this year, compared with an average of $1,572.00 in 2011.
Gold rose to a record $1,920.30 an ounce in September and gained 10 per cent in price in 2011, in an 11th consecutive year of gains.
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