China Tightens Silver Exports, Triggering Price Crash After Bullish Hikes

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China, the country responsible for holding 60%-70% of refined silver worldwide, has imposed new restrictions on its import. In this respect, the Chinese government now requires licenses for silver exports while listing only forty-four firms for the years 2026 and 2027. As per the latest reports, this amplified export restriction has resulted in a 16% crash in silver’s price. Additionally, this move could potentially lead to a noteworthy price squeeze in the near term.

🚨 CHINA BANS THE EXPORT OF SILVERIn 24 hours, China 🇨🇳 officially bans the export of Silver. That means Silver won’t be leaving the country. They know what is coming.China is the #2 Silver producer on Earth. By banning exports, they are effectively removing 110 million… pic.twitter.com/lPiTX4egov

— Bark (@barkmeta) December 31, 2025

Silver Faces Supply Squeeze Concerns as China Permits Only 44 Exporters

With China permitting just 44 entities to export silver during the next 2 years, the trader community is facing supply concerns. Although silver jumped above the $84 per ounce mark a few days ago, the latest export restrictions coming from China have negatively impacted this bullish scenario. As a result, silver has plunged by 16% amid speculations of a supply squeeze.

Previously, in November, huge silver exports of more than 4,600 tons took place. Keeping this in view, the Chinese authorities have planned the new restrictions to minimize notable outflows. Nevertheless, a likely supply shock could lead to a broader market momentum.

Price Pullback Indicates Consolidation, Leading to Speculation of Long-Term Upside

At the moment, silver is changing hands at $72.21 per ounce. This indicates a 7.31% dip over the past 24 hours. Adding to this, the new Chinese restrictions could put further pressure. Even then, silver’s overall outlook during 2025 was very bullish.

Particularly, silver has recorded a considerable 150% bounce throughout the year. Nevertheless, the latest Chinese development, pulling back up to 110M ounces from worldwide supply, has pushed it into a lighter mode. Nevertheless, the move could serve as a key accelerator for silver in the long run.

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