China's Silver Exports Soar, Defying Market Fears of Curbs

• China's silver exports reached a 16-year high of 5,100 tons last year, easing market concerns about tightening controls.
• A 2019 licensing regime for silver was extended by the Ministry of Commerce, initially rattling investors who feared new restrictions.
• The perceived tightening, amidst market tightness, fueled a silver rally, pushing prices above $95 an ounce.
• Exporters confirm no significant change in shipments, with most exports occurring under existing processing trade arrangements that exempt imports from VAT.
• Misinterpretations of China's policy, particularly in India, led to a 'FOMO' driven surge in investor demand for silver.

Why It Matters: China's record silver exports indicate current market fears of export curbs are largely unfounded.