Silver Shock 2025: China’s Curbs Ignite a Historic Bullion Frenzy

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China’s silver export curbs have triggered a global supply shock, sending prices soaring as traders scramble to cover shorts amid fears of a deepening bullion shortage.

By S JHA

Mumbai, December 28, 20255 — China’s export curb decision of silver has sent bullion markets trending. Silver has blasted through the roof overnight. Frenzy to cover shorts has sent traders on massive borrowings, claim analysts.

At the core of the maddening rally in silver overnight is the reported decision of China to curb exports of silver. Beijing has a 13% control over the global silver supply. The precious metal already had blown away traders in 2025 with an almost 175% rally. But the rally seems not tiring but only relaying—with force multipliers of geopolitics.

Silver closed on Friday at $79.33 per ounce. This was a gain of 10% in a day. Peter Schiff predicts, a commodity bull, bets on $100 for silver next year. His argument is “real shortages” of the precious metal.

Silver has been trending all through the year due to soaring demands—from EVs to electronics. Demand is unmatched by the mining output per experts. Shortages now have the scale of annual 100-200 million.

To make the situation hotter, China is unveiling exports regulation from January 2026. Analysts warns that global supply of silver could fall by 35 million ounces. China in the past has in similar manner been unveiling regulations on exports of critical minerals.

The Kobeissi Letter in a report said: “Buyers are now paying a 7% premium to buy silver today rather than wait a year for delivery. This signals an extreme shortage of physical metal in the London silver market.”

Under normal conditions, it noted, the spread remains positive due to the costs of storing, insuring, and financing silver inventories over time. “The spread has widened sharply as buyers have moved away from paper contracts and demanded immediate delivery,” it added.