China’s market for silver jewelry is experiencing a significant surge in demand for its silver products, including bracelets, earrings, hair combs, and tea sets, despite recent price increases in the metal. Customers at a local store have highlighted the enduring appeal of silver, particularly focusing on bracelets and necklaces.
Jiyuan City, a central hub for silver production in China, has noted a significant rise in business for jewelry retailers, with sales in October rising by 10% compared to the previous month. This seasonal increase is typical as the winter months approach, leading to higher silver sales. Retailers have consequently ramped up their inventories to meet this heightened demand.
Silver prices in China have steadily risen over the year, with the most active contract on the Shanghai Futures Exchange hitting an annual high of approximately US dollars 820 (Ksh per kilogram in mid-September. This price surge has motivated several individuals to sell their silver holdings for cash.
Read Also: China’s Gold Sales Surge Despite Price Hike
A precious metal processing company based in Ji’an has reported a substantial increase in its monthly buyback operations. While the monthly buyback was 2 tons in March, it has now reached at least 6 tons per month, reflecting the sustained demand for silver. Pending orders extend through mid-November, illustrating the continued market vitality.
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Ji’an City made a significant contribution to domestic silver production in the previous year, producing over 5,100 tons, accounting for 19% of the nation’s total silver production. This data highlights the resilience of the silver industry in China, irrespective of price fluctuations.
