Many people refer to gold and platinum as the jewellery of choice. While gold has a specific allure due to it's appearance and investment qualities, a rising gold price will open up a market for substitutes. Demand for platinum, it's current substitute (or competition), has risen considerably over the past decade. Once platinum is back in play on the industrial side, prices will rise sharply which will only really leave silver and other platinum group metals as alternatives for jewellery.
In the 1970's many people disputed the notion of global demand for platinum jewellery. Many feel the same way about silver now. I see a proportional relationship between an increase in the price of silver and the demand for silver jewellery. As the metal becomes more valuable, so it's allure grows among buyers. Platinum is often favoured by Chinese and Japanese jewellery buyers as it is argued that it suits there complexion better that gold. This opens up a serious market for silver as the next metal of choice due to it's relative affordability as well as it's potential for investment gains.
Combine global industrial, investment and consumer demand for silver and we are in line for a decade of three digit silver prices, if not more.
