China's increasing influence as a consumer of raw materials including silver could result in a 'de-manipulation' of the silver market though increased volatility in the short term is likely.
All the gold and silver roads now leading to China
With the opening of silver futures trading in Shanghai, China could rapidly become a major player in silver trading given its position as now almost certainly being the world's largest silver consumer.
Author: Lawrence Williams
Posted: Monday , 07 May 2012
LONDON (MINEWEB) -
This week the Shanghai Futures Exchange will start trading silver futures from Thursday. In a commentary on this the newspaper, The Australian, comments that nowadays all the gold and silver roads are leading to China, and speculation that the next few years could see the Chinese dominating the global silver market much as they appear to be doing with the global gold market.
Indeed a big inflow of silver into China - a country which has a long association with the metal having had a silver related currency standard up until the 1930s - is felt by some to be likely to end some of the metal's price volatility and perhaps end what some see as excessive manipulation of the market through COMEX.
But silver does need to throw off its reputation for volatility - the 'devil's metal' as some traders refer to it because of this, and initially silver trading in China could add to this until perhaps it finds some kind of stability.
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