Silver prices fall, China continuously buys goods

According to Kitco, China's silver imports reached their highest level in 8 years in the first two months of 2026, as strong demand from industries and investment increased domestic prices, causing domestic silver reserves to run out and boosting purchases from abroad at unprecedented levels, according to the latest customs data released on Friday.

In January and February, China imported more than 790 tons of silver, of which February alone reached a record level for the year with 470 tons.

Strong domestic demand has pushed domestic prices significantly higher than global standard prices, depleting already low silver reserves and promoting imports from abroad.

2026 recorded the most volatile start in history for silver prices, with spot silver prices reaching an all-time high of 121.62 USD/ounce on January 29, 2026, before falling nearly half to 64 USD/ounce on February 6.

In January, analysts at Goldman Sachs warned that China's new export control measures could exacerbate domestic shortages and disrupt global markets, and could even fragment the world silver market.

Thin inventories have created conditions for "seizure" waves, as prices rise sharply as investment cash flow absorbs the remaining metals in warehouses in London, and then reverses rapidly as scarcity eases" - analysts Lina Thomas and Daan Struyven said.

Analysts believe that this price volatility is not due to global silver shortages, but to local supply bottlenecks that distort the market.

Goldman analysts said: "Interruption risks can cause market participants to hoard separately instead of sharing global reserves. The shift from a common global system to separate regional reserves will create an inefficient structure - turning a smooth, linked market into a market prone to strong fluctuations in each region.