China plans to restrict silver exports by introducing a government licensing system starting January 1, 2026.
These regulations have significantly reduced global silver supply, deepening supply shortages and causing prices to soar.
In 2025, silver demand was approximately 1.24 billion ounces and supply was approximately 1.01 billion ounces, resulting in a deficit of approximately 230 million ounces.
Physical inventories in major markets such as COMEX have decreased significantly, and the premium for silver traded in Shanghai has increased.
Due to these supply restrictions and inventory reductions, the ratio of paper (futures) silver to physical silver is widening significantly.
