According to The World Silver Survey 2007, published by the trade association Silver Institute and consultancy GFMS Ltd, the authors of the report said that the annual silver price averaged a remarkable $11.55 per ounce in 2006.%%This was 58 per cent increase over 2005, and was driven primarily by the continued strength of investment demand which returned in earnest in 2005, was sustained in 2006 and has remained resilient in 2007.%%In 2006, the silver price reached levels not seen in 26 years and was the leader when compared with gold (36 per cent increase) and platinum (27 per cent increase), the Silver Institute said in a release.%%“Much of the investment demand last year can be attributed to the successful launch of Barclays' Global Investors iShares Silver Trust Exchange Traded Fund (ETF), which was introduced in late April 2006 and now holds over 135 million ounces of silver,” the report said.%%Silver demand for jewellery fabrication fell 5 per cent to 165.8 million ounces last year, largely due to price-related losses in India. In sharp contrast, Indonesian and Chinese silver jewellery fabrication grew by an impressive 18- and 16 per cent.%%“Lower fabrication in price sensitive countries and structural taste shifts accounted for the 7.5 million ounces dip in global silverware demand in 2006,” the Silver Institute said. “About 60 per cent of the silverware decline was due to India, where the price rise was evident in rupee terms.”

Total global silver fabrication dipped by a little under 1 percent in 2006 to 840.5 million ounces, in spite of a trend toward significantly higher and more volatile silver prices.%%Photographic demand continued to fall, decreasing by 10 per cent in 2006 to 145.8 million ounces. The bulk of the decline was the result of lower consumer film demand due to growth of digital imaging technology, the report stated. %%Global silver mine production edged up fractionally in 2006 to 646.1 million ounces, while on average the cash costs for producing an ounce of silver at primary silver mines decreased 16 per cent to $2.74.%%Net government sales crept up to 77.7 million ounces in 2006, as a result of marked increases in Russian sales, coupled with ongoing sales from Indian government silver stocks.