Silver Market Shaken: China's Record Exports Debunk 'Ban' Fears, Prices Drop

Personal Finance
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CNBC Awaaz•22-01-2026, 10:41
Silver Market Shaken: China's Record Exports Debunk 'Ban' Fears, Prices Drop
- •Recent customs data reveals China exported 5,100 tons of silver in 2025, a 16-year high, contradicting rumors of export controls.
- •The fear of a silver export ban from China was largely based on a misunderstanding of an extended license-based export system, not new restrictions.
- •Indian investors, driven by FOMO and social media rumors, heavily bought silver, especially around Diwali, anticipating supply shortages.
- •MCX Silver prices have already dropped by approximately 4%, or 12,000 rupees per kilogram, as the reality of normal supply emerges.
- •While current supply is normal, China has previously restricted other resources, suggesting future policy changes cannot be entirely ruled out.
Why It Matters: China's record silver exports debunk ban fears, causing prices to drop after a period of FOMO-driven buying.
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