By Paul Ploumis 13 Aug 2015 Last updated at 06:27:34 GMT
Based on analysis by GFMS Thomson Reuters, Silver Institute predicts 5% growth in global silver Jewelry demand during 2015.
NEW DELHI (Scrap Monster): The Silver Institute forecasts 5% growth worldwide silver jewelry demand during the current year. The forecast is based on the estimate provided by GFMS Thomson Reuters (GFMS) upon analysis of global silver jewelry demand trends during the first half of the current year.
The US has registered significant rise in silver jewelry imports during the first half of the year. Through the first five months of the year, the US imports of silver jewelry jumped 11% year-on-year. The imports from the two large Asian suppliers rose sharply during this period. The silver jewelry imports from Thailand registered robust growth of 18.5%, whereas those from China clocked 14% growth year-on-year.
Among other key Asian markets, India’s Silver jewelry exports have climbed higher significantly during recent months. The exports during the second quarter of the year soared higher by more than 55% from $337.46 million during April to June last year to $523.13 million during Q2 this year.
Silver bullion coins witnessed tremendous demand growth during the initial half of 2015. The surge in demand had created a situation whereby the US mint was forced to temporarily suspend the sale of silver bullions coins for almost three weeks. Later, the mint resumed the sales on allocated basis. Australia’s Perth Mint had also witnessed surge in silver coin demand during the month of June this year.
According to Silver Institute, the rise in industrial and investment demand will drive 5% growth in overall demand in the metal during the year. The demand for industrial applications is expected to improve by 2% in 2015. The gold/silver ratio suggests that silver is still underpriced relative to gold. As a result, more investments are likely to flow into the white metal. Incidentally, YTD silver ETF holdings have seen addition of nearly 4.7 million ounces from 2014 levels.
The Silver market would mark third consecutive year of deficit in 2015. The deficit for the year 2015 is estimated at 57.7 million ounces