Silver jewelry purveyors are quite bullish on the upcoming festival season and expect to post their best earnings yet. The only dark side between these silver clouds is the rising cost of silver. In the commodities market, silver is shining quite a bit and has even outperformed gold in the current uptrend.

The diminishing momentum within the world economy has made the whole situation more complex, as investors often find themselves in the dilemma of whether to invest in gold or silver. Trade analysts say that the continued rise in the price of silver can mainly be attributed to future trading.

Unsurprisingly, silver jewelry makers don’t have too much fun in today’s ball game. In his view, after gold prices soared, demand for silver began to rise, although if silver also goes the way of gold, it won’t be long before demand for silver begins to plummet.

Since prehistoric times, silver has remained one of the favorite metals for ornaments, utensils, etc. Silver jewelry vendors confirm that in the current scenario, India remains one of the major consumers of silver and global markets are betting big on the upcoming Diwali season for record sales. The world’s largest silver producers remain the United States, Canada, Mexico, Bolivia, Australia and Germany.

In general, Indian exporters are having a field day in the current fiscal year. According to the latest data release, India’s exports have soared 23.2 percent year-on-year to $18.02 billion in September. The reports further reveal that during the first half of the 2010-11 fiscal year, exports totaled $103.30 billion increasing 27.6 percent. These figures include exports of sterling silver jewelry and therefore also indicate an increase in their overall sales.

Industry insiders unanimously say that the increase in silver would not reduce profit margins much and that the current season could be the best yet for these jewelers. With all the buzz going around, it’s hard not to feel the excitement in the hope that silver jewelry exporters will post the best season of their lives.