China's Silver Export Curbs Trigger Global Supply Fears As Prices Surge

Silver prices have surged to record high levels so far in 2025, driven by multiple factors like strong industrial demand and a supply crunch.

With China’s export curbs on the white metal set to come into effect from Jan. 1, 2026, market experts predict a further rally in the price. The spot silver price touched an all-time high of $82.95 an ounce in the international markets on Monday. This marks an increase of over 170% compared to the price at $29 an ounce at the start of 2025.

The unprecedented rally in silver prices has raised concerns among market experts, while traders continue to fear a further supply crunch due to China’s export curbs.   

“This is not good. Silver is needed in many industrial processes,” Tesla CEO Elon Musk reacted to China’s upcoming silver export restrictions in a post on X.

On Monday, silver prices in many Indian cities continued a new record high of Rs 2.5 lakh per kilogram, according to GoodReturns.

Amid global economic uncertainty and growing industrial demand, China’s move to impose restrictions on silver exports has further fuelled the price rally. Silver is a crucial industrial metal as it is used as a key component in power, solar panels, electric vehicles, data centres and other sectors.  

Growing demand in these industries is reducing global silver inventories. A tight supply combined with strong demand is pushing prices of the white metal higher. Several structural factors are converging, including ongoing supply-demand deficits, falling global inventories and strong industrial demand in key sectors. 

Under China’s new rules, the companies are required to obtain government licences for silver exports. The guidelines also introduce a quota system for exporters based on their export history between 2022 and 2024.

The move is aimed at enhancing management and protection of resources and the environment, Global Times reported citing Chinese authorities. However, the restrictions, announced amid other geopolitical factors, have created a frenzy surrounding silver demand. This has created a clear imbalance in the demand and supply of the white metal across major markets globally.