Quick overview

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China’s insatiable appetite for silver drove overseas purchases to an eight-year high at the beginning of 2026 as importers fueled a spike in industrial and investment demand

According to Chinese customs data released on Friday, the largest buyer in the world received over 790 tons in the first two months, including nearly 470 tons in February—the highest amount ever for that month. Due to strong demand, local prices have risen significantly above global benchmarks, reducing already low exchange reserves and prompting the acquisition of metal from overseas.

A wave of speculative buying from China and other countries drove silver prices up by roughly 70% at the beginning of the year, but by the end of January, they abruptly gave up their gains. This is the most volatile start to a year for silver prices.

The robust import numbers indicate that, despite changes in trade flows, physical consumption in China has continued. Demand has come from solar manufacturers front-loading production and retail investors hoarding silver bars as a substitute for the increasingly expensive gold.

A significant amount of the metal has traveled through Hong Kong, which acts as a gateway for precious metals traveling to the mainland, in an effort to seize an enticing arbitrage opportunity.

Stanley Cheung, AC Precious Metals Refinery Ltd.’s managing director, claimed that while large silver bars traded by banks normally trade at a discount to the benchmark in London, during the first two months, prices in the area have drawn a premium of up to $8 per ounce.

China’s massive imports haven’t yet disrupted the London market because of a record inflow of silver into the global trading hub following a historic squeeze last year.

The quantity of silver held in exchange-traded funds globally has dropped by more than 1,900 tons this year, making more metal available.

However, markets are breathing more easily for the time being. Yuan Zheng, an analyst at Henan Jinli Gold and Lead Group Co.’s Shanghai-based trading division, stated that as the rebate deadline approaches, the Chinese premium on silver has decreased and solar demand has slowed. “In the near future, there will be more supply than demand.