China’s move to restrict silver exports is set to keep the metal in the spotlight, with analysts warning of a supply crunch following weeks of volatile price swings.
Effective Thursday, the Ministry of Commerce will implement a two-year special government licence for exports of silver, along with tungsten and antimony. While Beijing says the measure is aimed at protecting resources and the environment, market watchers see it as a signal that supply to overseas markets will be further limited.
The new rules replace a quota system in place since 2000. Under the stricter regime, exporters must meet rigorous standards: firms need to prove they executed silver exports annually from 2022 to 2024, while new applicants must demonstrate annual production exceeding 80 tonnes and consistent export records.
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“Compared with gold, silver has delivered a markedly stronger performance,” said Antonio Di Giacomo, senior market analyst at global multi-asset broker XS.com, noting that the divergence between gold and silver reflects the latter’s hybrid nature.
“It acts as a safe-haven asset during periods of uncertainty while also benefiting directly from industrial and technological expansion, which explains its relatively higher volatility,” he added.
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Spot silver briefly surpassed US$80 an ounce for the first time this month before retreating to the US$70 range.