Why do silver prices fluctuate? What is the impact of China’s role in the export restrictions of 2026?

Global silver prices have been witnessing fluctuations for some time now, and China’s role in this is important. Due to new export restrictions coming into effect from 2026, China’s silver supply may decrease, which is expected to push global prices higher.

Main reasons for China’s role:,

1. Control on export:– From January 1, 2026, China has implemented new rules on the export of silver. Under this, exporters will have to obtain government licenses, which will lead to disruption in supply and likely to increase prices.
2. Large Industrial Demand:– China is the largest consumer of silver for solar panels, electronics and electric vehicles. Therefore, China’s demand directly affects global prices, putting pressure on global supply.
3. Dominance in Production and Supply:– China is the world’s second-largest silver producer, and its decisions have a deep impact on the global supply chain. Prices may rise due to reduced silver production.
4. Resource Nationalism:– This policy of China is part of its ‘resource sovereignty’ approach, in which it is storing silver for domestic industries and strategic needs. This leads to a shortage in the global market and a rise in prices.
5. Market control and manipulation:– China’s new export rules could increase supply shortages, sending investors and industries already in the market racing to buy silver, sending prices higher further.