China said its net imports of silver nearly quadrupled to more than 3,500 metric tons in 2010, boosted by sharp increases in demand by the industrial sector and the jewelry industry. Silver demand in China and India has increased sharply in recent months as more investors use silver as a store of value.
About 70% of China’s silver demand comes from the industrial sectors. Silver is widely used in the production of electronic products, jewelry, industrial production, such as medical, solar power and water purification industries.
China is the world’s largest producer of solar power and electronics. Silver price increased more than 80% in 2010. Demand for silver in China and India is up 30 per cent in 2011.
In 2010 India consumed about 2,800 tonnes of silver, this year’s consumption is expected to rise to 5,000 tonnes, according to Albanian_Minerals President Sahit_Muja and trading experts.
Silver investments in India is mostly from rural areas, which account for 70 percent of the country’s 1.2 billion population.
The world’s silver output was 21,500 tons in 2009. In 2009, global supply of physical silver was 27,000 tons, rising by 0.20% in 2008.
The total global production of silver was 29,000 tons in 2010. The industrial demand is one of the factors affecting the prices of and silver in China and India. Devaluation of the dollar, economic problems, political tensions, inflation, and exchange rates are other factors that have also contributed on rising silver prices. http://www.pr-inside.com/silver-demand-in-china-and-india-r2565866.htm Sahit_Muja
And with demand for everything likely to slow down given the end of QE2 and increasing unemployment (public sector layoffs for July fiscal year are starting) along with a likely Greece default by later summer driving up the dollar, silver fundamentals are as questionable as the speculation piece...