Silver Demand Booms in China
Source: Silver Investing News, Michael Montgomery (7/6/11)
"Silver imports to the Asian giant have reached new highs, spurred by industrial, jewelry, and safe haven investment demand."
Silver demand in China is soaring. Imports of silver to the Asian giant have reached new highs, and analysts maintain that demand for this year will only continue to grow. The growth comes not only from industrial and jewelry demand, but also from the increased investments in silver as a hedge against market losses and inflation.
New reports show that net imports of silver to China have risen dramatically and will continue to do so going forward. In 2010, the net import of silver quadrupled, hitting a record of 3,500 tons. The pace of Chinese imports since the start of 2011 is still strong.
Analysts see growing demand for silver in China, as well as India, rising by as much as 30% on the year. The increase in demand is also strong for Chinese silver ‘Panda’ coins, prompting the Peoples Bank of China to double the maximum issuance of coins for the year.
"[S]howing the big pickup in demand for silver in China, the PBOC says that it is doubling the maximum issuance of one ounce silver Panda coins from 3 million to 6 million. To emphasize this growth in demand the issuance in 2010 was 1.5 million," reported Lawrence Williams, for MineWeb.
The growing demand for silver and gold coins underscores the concerns of the Chinese middle-class towards their economy. The weak economic data worldwide may dampen the outlook for the industrial use of silver; however, inflation concerns in China will most likely draw more investors into the silver market.