Silver consumption on the rise globally

Industrial consumption of silver globally witnessed an impressive 11 per cent growth in 2005 and 20 per cent in the past four years, on the back of rapid growth in industrial applications led by demand for consumer products.

In comparison, according to the London-based Silver Institute's World Silver Survey 2006, the jewellery segment "� considered a major consumer of silver "� had a negligible consumption growth last year and has declined 5 per cent during the last four years.

Industrial applications grew to 409.3 million ounces (1 ounce is 31.1035 gm) in 2005 from 368.3 million ounces in 2004, industry sources said, adding it was on the back of rapid growth in consumer products.

The demand for consumer products, in turn, has largely been led by the demand for electrical and electronic products which last year grew 10 per cent, globally. It is expected that the strong demand from these markets will further propel the demand for silver.

Market experts said consumption of silver in applications such as solders, bearings, chemical catalysts, mirrors, medicines and dental alloys grew stronger, and the major consumption growth came from India and China where industries were fast expanding their bases.

Although the jewellery segment consumption of silver saw only a marginal growth of 1.8 million ounces in 2005 from the 2004 levels, a major portion of the growth came from these two fast developing Asian economies.

While India's demand for silver jewellery and silverware rose 8.5 per cent to 48.9 million ounces, China reported a jump of 20 per cent in demand at 16.4 million ounces, in 2005.

However, the demand for silver jewellery and silverware declined by 12.8 million ounces (or 5 per cent) to 249.6 million ounces last year from 262.4 million ounces in 2004.

The photography segment, another major consumer of silver, too has shown decline in the demand for silver, falling 9 per cent to 164. 8 million ounces in 2005, from 181 million ounces in 2004.