Thought this was interesting!
I asked AI if China was manipulating the price of silver.
AI Overview
No it's unlikely China is actively suppressing silver prices; the evidence suggests the opposite, with claims that China has stopped its historical manipulation and is now strategically accumulating silver, driving up prices and creating a deficit in the global market. China's growing industrial and investment demand for silver, fueled by its economic policies and infrastructure projects, actually supports higher prices rather than suppressing them.
China's Actions:
Strategic Accumulation:
Some analysts, like Alasdair Macleod, suggest China is strategically increasing its silver reserves, a move that would naturally reduce supply and support prices.
Demand-Driven Market:
China's significant industrial demand for metals, including silver in sectors like machinery, autos, and construction, is a major factor in the global silver market.
Shift from Suppression:
Macleod and others argue that China has ended its long-term manipulation and suppression of silver prices, moving to a phase of acquisition.
Market Conditions:
Global Deficit:
The global silver market is projected to remain in a deficit in 2025, meaning demand exceeds supply, which is a bullish indicator for prices.
Rising Industrial Demand:
China's initiatives to boost key industries are expected to increase the demand for silver as a raw material.
Price Pressures:
While geopolitical factors and the US dollar can cause short-term fluctuations, the overall expectation is for prices to remain elevated due to strong demand and tight supply.
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