Shanghai Silver Premium Stalls at $8 Due to Tax Structure
Shanghai’s silver premium over London persists not due to local demand but because a 13% import tax makes bringing foreign bullion into China unprofitable. This fiscal barrier simultaneously encourages the export of domestic refined silver, resulting in record outflows and a stagnant local supply that keeps the premium artificially high.
New data from GN auto markets/commodities reveals that China exported a record 162 million ounces of silver last year while importing almost none, confirming that the tax structure actively incentivizes the outflow of domestically refined metal rather than blocking imports.
Source: GN auto markets/commodities: silver pricesNew analysis from GN auto markets/commodities: silver prices reveals that China’s record silver exports are driven by a tax loophole allowing refineries to import ore duty-free for re-export, effectively draining domestic supply and sustaining the Shanghai premium.
Source: GN auto markets/commodities: silver pricesShanghai silver trades at an $8.72 premium to London, a gap sustained by a 13% import tax that blocks arbitrage and keeps foreign bullion out of the domestic market.
Source: GN auto markets/commodities: silver prices
