consumers & need for silver growing

Will the Indian's desire for Silver be as strong as it is for Gold.

India
"While India imported 1,900 tons of silver in 2012, in the first five months of 2013 alone, imports have touched 2,400 tons. According to industry estimates, silver imports during the January-March quarter stood at 760 tons.

Imports shot up to 720 tons in April alone, and in May they further swelled by 920 tons.

Let’s put these numbers in perspective, according to the Silver Institute, the world produced 24,478 tons of silver in 2012, implying that Indians have imported almost 10% of world production so far this year.

If they continue to import at the same rate as they have in May, over the next 12 months India could import close to half of world silver production which is a truly staggering shift in demand for silver.

The next salvo in the war on gold occurs this Monday July 1st when “The All India Gems and Jewelery Trade Federation” (representing 90% of jewelers in India) declares a ban on its members selling gold bars and coins.

It’s almost unbelievable that this retail federation would impose an all-out ban on purchasing gold for investment purposes, but all is fair in love and war. However, Indians aren’t phased and are shrugging off this ban and investing their rupee’s in silver instead.

This new import data shows that the victor in India’s “War on Gold” – will be silver."

China & Japan
"According to the Silver Institute, one megawatt of solar power requires as much 2.8 million ounces of silver.4 China and Japan’s solar projects combined will add up to 27 megawatts over the next three years.

This capacity will require approximately 91 million ounces of silver, which means that China and Japan’s new demand could consume up to 11% of global mine supply – and that’s if the world produces as much silver as it did in 2012.

Silver used in solar panels cannot be recycled and therefore disappears from the world’s silver stockpile. If China and Japan can follow-through with their respective solar programs, the silver market could benefit significantly. None of the 2013 silver price forecasts have incorporated these recent announcements, but the prospective numbers are big enough that they should."