Najo's founder Jo Tory said further price hikes in the silver industry weren't necessarily a bad thing
Global silver jewellery production hits five-year high
Posted April 12, 2011 | By Sonia Nair
Despite a near 38 per cent rise in average silver prices, global silver jewellery production rose by more than 5 per cent to a five-year high in 2010, according to the 2011 World Silver Survey.
The better performance of silver jewellery in 2010 was attributed to the substitution of silver for gold in Western markets due to rising gold prices and the emergence of the ‘fashion’ jewellery segment in China and India.
Consumption of silver jewellery in its key markets, including China and the US, is said to have risen by more than 5 per cent last year. This figure stands in sharp contrast to gold consumption in key markets, which dropped in the range of 10 to 15 per cent.
As a result, China and the US both benefitted from increased silver jewellery production. Production of silver jewellery was highest in China at a total of 31.2 million ounces, followed by Thailand at 28.0 million ounces and Italy at 21.8 million ounces.
Australia recorded total silver jewellery production of 700,000 ounces in 2010, an increase from the 600,000 ounces it produced between 2006 and 2009.
The report said the rise in global silver consumption was also due to two factors: consumers’ desire for discretion in economically uncertain times, meaning that a ‘white look’ has been favoured over yellow; and an interest in vintage pieces, where silver has benefitted from sales of new artificially aged silver pieces.
Speaking to Jeweller for the magazine’s May silver feature, Najo founder Jo Tory said further price hikes in the silver industry weren’t necessarily a bad thing – in fact, they could be good news: “I think the higher silver costs will drive the perception of silver jewellery up to be more of a luxury and, therefore, aspirational purchase.”
"Gold is beyond some people's reach so people are turning more and more to silver," Tory added.
> Jeweller’s ‘Silver for Generation Y’ feature will be published in the May issue of the magazine.