China silver and gold demand surges as imports hit record highs in March amid solar boom and investment buying

China is seeing a very strong rise in demand for silver in recent months. In March, China’s silver imports jumped 78% month-on-month, reaching about 836 tonnes, which is a record level, as per Chinese customs data via Mint and Bloomberg. This March import figure is 173% higher than the 10-year average for March, which is around 306 tonnes.

On a year-to-date basis, China has imported about 1,626 tonnes of silver, which is the highest ever recorded. The demand is mainly coming from retail investors who are buying small silver bars because they are cheaper than gold. Another big reason is the solar industry, which is stocking up on silver before tax rebate changes. China removed export tax rebates on April 1, so manufacturers bought extra silver before that date.

Silver demand in China grows fast

The solar industry uses around 20% of the world’s annual silver supply, and most of it is in China. Silver is very important for solar panels because it has high electrical conductivity. Because demand is so high in China, local silver prices have become higher than global prices. Traders are moving silver from other countries into China to earn profit from this price gap. A large amount of silver is being routed through Hong Kong for trade.


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Experts say this high level of silver imports may not continue forever. Now looking at gold, China’s gold imports also increased to 162 tonnes in March, the highest since March 2024, as noted by Mint. This is the third month in a row that gold imports have increased. Total gold imports for 2026 so far are around 365 tonnes. China’s central bank also bought about 5 tonnes of gold in March, continuing long-term buying. The central bank has now been buying gold for 17 straight months, showing strong reserve building.

China gold imports hit record levels

China’s total gold reserves are reported around 2,262 to 2,313 tonnes, depending on data sources. Gold prices in China rose strongly, with Shanghai gold up 10% in March, and global gold prices also rising, as stated by Bloomberg. However, silver and gold prices later fell from earlier highs due to global tensions and inflation fears. Experts say silver demand is being driven by industry (solar and EV) and also heavy investor speculation. They warn that silver can be very volatile, and risk is higher compared to gold.

Some investors suggest buying silver on dips and selling during rallies due to price swings. Overall, China is still strongly buying both silver and gold, showing long-term demand despite short-term price ups and downs.

FAQs

Q1. Why is China buying so much silver right now?

China is buying more silver because of strong solar industry demand and investors choosing cheaper silver instead of gold.

Q2. Is gold demand also increasing in China?

Yes, China is importing more gold due to strong central bank buying and rising investment interest.