Silver, although avoided by most investors, saw record demand, thanks to attention from major fashion houses around the world. A recent article in The New York Times said silver jewelry was featured at the European Fine Art Fair in Maastricht, Netherlands. Haute couture jewelers Boucheron and Buccellati also unveiled their silver creations in Paris this summer.

In October, Elisabetta Cipriani showcased a necklace called Vortice II, which was created by the British artist-jeweler John Moore. The piece, consisting of pieces of silver connected by a rubber band, cost more than $29,000.

Metals Focus said in its latest report that silver demand increased by 235 million ounces this year, up 29% year-on-year. Leading the gains is India, which accounts for almost half of global demand.

Some analysts say consumers are attracted to the metal because its price is lower compared to gold. The gold/silver ratio is currently hovering near the highest level in more than two years, with gold prices trading around $1,740 an ounce, and silver at around $21 an ounce.

Along with the price differential, an article in The New York Times noted an increase in the artistic appeal of silver. "Some customers prefer color, while others are attracted by price," said Alyse Chirumbole, director of jewelry and watches at online retailer Threads Styling. "Silver is a sharper and more modern way to wear jewelry, especially for younger customers," she added.

Parisian jeweler Amelie Huynh also used silver in her designs. She said their silver pieces are 30-40% cheaper than their gold equivalents despite having high labor costs.

Silver is a very soft metal, while sterling silver is traditionally blended with copper, which makes it harder.