๐จ From 1st of January 2026, China will require a special export license for silver exports. This replaces the old system and means that only approved companies can export large quantities of silver.
๐กChina is the world's second largest producer of silver. By restricting exports, they are immediately removing about $110 million ounces from the global market (about 13% of total supply). ๐ฎ
๐๐Impact on Silver prices:
- Supply shock: If about 13% of global supply is cut, the amount of silver available for use will decrease rapidly
- Highs Premium: Physical Silver buyers compete for fewer bars/coins -> prices and premiums will increase
- Paper vs Physical Gap widens: Futures prices may be slow, but physical prices may rise first
- Volatility increases: There are strong price movements both up and down as the market re-adjusts supply
