Dramatic evolution of China Silver market to continue
However, investment options are still rather limited in China, in part because of still immature domestic financial markets but also in no small measure due to strict foreign exchange controls.
Twelve years after China ended it's state monopoly over silver trading,it's investment market for silver has undergone considerable development.
A new report released by the Silver Institute paints a rosy picture of the Chinese silver market and forecasts further growth.
Though China ended state monopoly over silver trade in 2000, only from 2006 silver trading first became available to the general public on the shanghai Gold exchange and on the Shanghai Futures exchange in 2012.
In 2009, another key change was made by the People’s Bank of china (PBOc), which allowed private investors to buy silver bullion bars in China.
These changes, along with silver’s impressive price performance and a growing need for the public to diversify their assets amid growing inflationary pressures, have seen demand for both physical silver and paper products rise spectacularly in recent years.
China’s retail investment demand for silver is also forecast to grow robustly over the short to medium term, as a wider population base gains access to silver bars and coins.
Growth in paper trading of silver could turn out to be even more dramatic, as a renewed silver rally and its low acquisition cost compared to gold should provide a strong boost to investor interest.
In just a decade, demand for silver in China has grown by more than 100 million ounces and fabrication has nearly doubled, making China the second largest silver fabricator in the world just behind India. China is the world’s leading market for both physical investment and paper trading of silver futures.
The Silver Institute report forecasts that demand for silver will experience strong growth in the coming years. Between 2001 and 2011, the market in China for silver jewellery grew by 211% to 54.4 Moz.
Silver Institute executive director Michael DiRienzo it is impressive to see the dramatic development in so many sectors of their domestic silver market in the last decade.”
However, investment options are still rather limited in China, in part because of still immature domestic financial markets but also in no small measure due to strict foreign exchange controls.
Looking ahead, it is probable that physical silver investment demand will continue to flourish in China, at least while the conditions described above remain in place, with this supported by further expansion on the ‘supply side’ that will improve the availability of bullion products for local investors.
Sumber : Google
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