Global silver jewellery consumption is expected to grow 5% in 2015, according to a release by The Silver Institute, an industry body set up and supported by companies across the silver value chain. The association said the estimate has been provided by GFMS Thomson Reuters (GFMS), the precious metals consultancy, based on its analysis of global demand for the first half of the year.

According to the Institute, jewellery imports into the US have increased by 11% in the first five months of 2015, with the two largest suppliers, Thailand and China registering an 18.5% and 14% jump in imports over the corresponding period a year ago.

Exports of silver jewellery from India have also risen significantly in the last few months. As reported earlier, India saw a huge spike in silver jewellery exports which rose to US$ 274.41 million from US$ 115.88 million a year ago. Between April and June 2015, exports have soared to US$ 523.13 mn from US$ 337.46 mn a year earlier.

Nearly 60% of silver goes into industrial applications in industries like electronics, chemicals (partiularly ethylene oxide manufacturers), renewable energy etc Demand from the industrial sector is expected to rise 2% this year, GFMS said.

The institute described investment demand as sturdy,  saying Silver ETF holdings increased by over 4.7 million ounces, and coin sales, though 6% down on 2014 levels was still the fifth highest ever seen.

The gold/silver ratio, a simple measure of the metals’ relative prices calculated by dividing the price of an ounce of gold by the corresponding price of silver, has averaged 58 since 2000. The ratio averaged 73 in the first half of 2015, indicating that silver is underpriced relative to gold. This gives way to increased potential for buying in the silver market, the Institute said.