Silver prices are expected to move sideways to slightly higher this week. Prices could rise as high as $18.00, a level not seen since 21 January.

Jewelry demand for silver in India and the Middle East has tapered off slightly over the last couple of months due to relatively higher prices.

Secondary recovery of silver from Indian scrap, on the other hand, remains firm. Recent estimates from India indicate that silver recovery from scrap almost doubled last year from 2008 levels.

High silver prices have encouraged many individuals in India to sell their old jewelry and silverware to scrap refiners. Industrial demand for silver has been holding up well on improvements in the global economic conditions.

Consumer spending on several silver-bearing items such as flat panel televisions, batteries, and cell phones has been reviving. Investors have become more optimistic or perhaps less pessimistic about financial, economic, and political conditions.

That said, there still is a fair amount of investor concern regarding the pace and strength of the current recovery. Combined ETF silver holding were 469.2 million ounces at the end of last week, down from 472.9 million ounces on 5 March.

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