China and silver have enjoyed a strong bond right from when it still issued a silver related currency in the early twentieth century. The entry of China into the global silver market is likely to end COMEX manipulation and reduce the volatility of the precious metal to a certain extent.
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 traders’ belief 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. The Asian country is one of the largest silver miners and the biggest consumers of industrial silver. At present, silver bullion and jewellery have attracted many investors 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.