SILVER'S increasing dominance in the precious metals market is being fuelled to a large extent by demand from India.
Last year, consumption there doubled to about 112 million ounces.
''It simply reflects the supply and demand fundamentals,'' said Joe Rosta, research director with CPM Group in New York of silver's recent gains.
''There's very little metal around for industrial and jewellery consumer stockpiles,'' he said.
Silver prices were also rising to reflect the fact that newly mined production has fallen short of demand during the past four years, said John Lutley, executive director of the Silver Institute, based in Washington DC.
Last year's newly mined silver was forecast at 143 million ounces, or 42 per cent of the group's estimated world-wide silver supply, Mr Lutley said.
