Many investors are of the opinion that silver is going to be the new gold if Chinese appetite for silver is a reflection of things to come. It is no secret that China was in the past largely a net exporter of silver, but things have changed considerably over the last few months. China has now become a massive importer of the metal due to the huge investment and industrial demand in China for silver today. In fact, the demand for silver, physical silver that is, is increasing in the Middle East as well.
The imports of physical silver into China are set to reach new levels due to widespread use of silver in the jewelry and other industries. So while many other commodities might lose value, it is very likely that silver will remain bullish according to economic analysts. In fact, silver imports into China quadrupled in 2010 to an amount of 3500 tons. This while other commodities have been negatively affected by factors such as the debt in Greece and soft economic data in China and America.
Silver is now able to capitalize on the debt crisis in Europe, the weakening U.S. Dollar, and a very sluggish American economy. This is good news for investors who choose to invest in this white metal. The truth be told, silver is money and always has been money, despite the fact that only a few people out of the total world population know about silver’s true worth.
U.S. payrolls grew slower than ever in the 8 months leading up to May this year. The U.S. Dollar has fallen to an all-time low against no less than 6 other fiat currencies. This economic news is worrying to the bulk of investors, but the silver investor is not really shaken by this sort of news or economic data. He/she knows that the value of physical silver will continue to rise, despite silver market manipulation and the “paper gimmick.”
It has been reported that Turkey imported just less than 26 tons of silver in May and this was 61 kilograms more than in April. This trend indicates to economists that the silver price (spot price of silver) is going to continue to increase, assuming of course that silver market manipulation does not accelerate.
Economists have read much into the fact that in 2005 China had exported 3000 tons of silver and that it has now become a key importer of this precious metal often referred to as poor man’s gold. The year 2007 was the defining year for China in terms of becoming a major importer of silver. The Administration of Customs in China has released figures that showed a clear turnaround in activity regarding silver.
Manikbhai Shah from Mumbai urges investors and economists to take note of what has been taking place in China since the beginning of the year. February saw 245.6 metric tons of silver being imported. This was very near to the amount of 260.6 tons that was imported in the preceding February. It was a large indicator of the fact that China is prepared to fork out cash for this metal at more than $30 per ounce. This is something that is largely ignored in the Western media.