China Buyers Drive Silver Prices Higher
By GCRU Gold News on Tuesday, July 5 2016, 01:15 - Permalink
The price of silver surged to a two-year high on Monday as buyers in China made bold bets in the futures market and scooped up vast volumes of physical metal.
“Silver has been chased after by investors as Brexit raised expectations over concerted efforts by global central banks to cut interest rates further,”
Trading in the December silver futures contract reached nearly 95 billion yuan on Friday—compared with 50 billion yuan in the session before—which was more than four times the daily transaction volume of a month ago, according to data provider Wind Information.
The Shanghai Gold Exchange said if trading was one-sided during the last five minutes of the session, it would raise its current 8% daily limit for silver to 11% beginning Tuesday. It also said it would raise its margin requirement to 13% from 9% due to a “strong upswing of silver prices,”