Silver Costs 10% More in China
Attention silver investors. Silver is bought and sold some 10% above the global spot price in China, a
Reuters dispatch informs, quoting Ellison Chu, senior manager at Standard Bank London in Hong Kong.
"There's a huge price difference between the domestic price in China and the international price. The demand is quite strong in China these days.
The price in China is 10 percent higher than in the international market."
This news is insofar interesting as it raises the question whether the global spot price is valid anymore. Obviously not when such discrepancies occur.
A similar gap
between the spot price and prices actually paid occurred in late 2006 when silver bullion was bought at prices some 10% higher than spot prices would have indicated in Europe. This was because of a supply shortage as I was told by sellers who predict that the supply problem will only grow in the near future.
According to the report demand for silver comes from all corners: Jewellery, photography, industrial and investment demand.
Silver again outperformed gold on Thursday and is expected to go a lot higher in mining circles. Nobody wants to be quoted but the prices I hear for 2008 range between $20 and $30 based on growing demand and a continuing supply deficit.
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