Silver set for best year since 1979 as China crackdown fuels rally

Core Insights - Silver is experiencing its best year since 1979, with a price increase of 159% since the beginning of the year, significantly outpacing gold's 70% rise [3] - The recent surge in silver prices is attributed to a crackdown on exports from China, which is expected to tighten global access to the metal [4][5] - The demand for silver is driven by its status as a safe-haven asset amid inflation fears, geopolitical tensions, and government debt concerns [3][6] Industry Impact - China's new export licensing requirements for silver, tungsten, and antimony are anticipated to favor large companies and exacerbate the supply-demand imbalance in the silver market [4][5] - The depletion of global silver deposits, combined with strong demand from both investors and industrial buyers, is contributing to the price rally [5] - The market for silver is smaller than that for gold, making it more susceptible to volatility, reminiscent of historical market manipulations in the 1970s [7] Company Performance - The rally in silver prices has positively impacted precious metal mining companies, with shares of London-listed Hochschild Mining increasing by 128% [8] - The price of platinum has also reached record highs, rising over 40% in the last month, indicating a broader trend of increasing precious metal values [9]