This week, Shanghai, China becomes a new market for silver futures trading. China is already a major global gold market player. Many believe that Chinese influence may even put a damper on silver’s well-known price volatility, and devise an end to perceived COMEX silver market manipulation. This belief is grounded in knowledge of China’s handling of the gold market, which is known to be a significant international driver of gold prices.
The significantly smaller silver market could see substantial impact from China’s accelerated industrial and retail silver consumption in the near future. COMEX short sellers of silver may liquidate these positions, in anticipation of sinking prices due to Chinese precious metals market activities.
Chinese fabrication and investment demand has already made China into a net silver importer. Currently standing behind Mexico and Peru in silver production, China may be the largest global silver consumer. Although the belief that China may have more than a decade’s stockpile, their appetite for silver is currently growing by double digits.
