China Looks to Become a Major Player in Silver Trading

Credit: Alchemist-hp / CC-BY-SA 3.0

China and silver have enjoyed a strong bond right from the times when it still issued a silver related currency in the early twentieth century. The entry of China in the global silver market is likely to end COMEX manipulation as well as reduce the volatility of the precious metal to a certain extent.

Analyzing the latest trends in silver prices, silver needs to discard the volatility tag that gives it such a bad image. Also known as ‘devil’s metal’ by some traders, China’s entrance may further reinstate the belief of traders in silver as an undependable asset. But sooner or later, silver is bound to find stability.

Chinese retail investors are attracted to silver investment for its lower price than gold and because the Asian country is one of the largest silver miners as well as the biggest consumers of industrial silver. At present, silver bullion and jewellery has drawn the interest of many investors who have been doubling their investment with passing days. China is also a major importer of silver for industrial and fabrication purpose, mainly in electronic and solar products.

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