Silver consumption rises to record levels

Low silver prices have boosted demand for this white metal. Investment and jewelry manufacturing have boosted global demand for silver. This is especially the case in India, where in 2014 the demand for silver jewelry hit a record level. Plus, silver prices plunged nearly 20 percent during 2014.

Tight restrictions on gold imports have boosted investment in silver over the past two years. A recent silver supply and demand research report indicates that demand for silver jewelry in the country rose 81 percent in 2013 to 1,315 tons, and in 2014 jewelry demand increased to a high of 1,936 tons.

Looking ahead, industry experts predict significant growth in demand for silver from the industrial sector other than jewelry. Widespread use in instrumentation, electronic radio frequency (RFID) devices and solar devices should drive the demand for silver in the coming decades.

According to statistics, India's silver imports more than doubled to 5,819 tons in 2013. In 2014, silver imports hit a new record of 6,842 tonnes, up 18 percent over the previous year. Silver began to be more often substituted for white gold in studded gold jewelry.

Falling silver prices have led to new investments in silver bars and coins. Falling sales of gold coins and bullion helped channel money towards the silver alternative. By the way, India has become the fourth largest producer of silver coins in the world after the USA, Canada and Australia.

Silver consumption in the country almost tripled from 472 tonnes in 2012 to 1222 tonnes in 2014 and reached its highest level since 2006. The boom in silver jewelry has fueled the launch of new silver retail platforms. At the same time, investment demand for gold experienced a decline, and for silver reached a record high of 19,728 tons in 2014.