China's Silver Scene Is Buzzing Thanks To Retail And Solar, But ETF Investors Should Take Stock Of Geopolitics

Silver is back in the spotlight with the metal witnessing a surge in demand, especially in China, per the report. This could provide a boost to silver prices and its ETFs – iShares Silver Trust (NYSE:SLV) and abrdn Physical Silver Shares ETF (NYSE:SIVR) tracking the bullion.

China Silver Demand Hits Record High

According to a Wednesday post on X by The Kobeissi Letter, China silver imports reached a record high of approximately 836 tonnes in March, up 78% from February and 173% above the 10-year seasonal average for March. Year-to-date, silver imports are up to approximately 1,626 tonnes, the highest on record.

The surge was driven by strong retail and solar demand. Investments in small silver bars climbed as substitutes for high-priced gold, according to the market commentator’s post. The solar manufacturers are ramping up production ahead of the removal of export tax rebates on April 1. "The global solar industry consumes ~20% of total annual silver supply, with the majority of activity concentrated in China.”

The Silver Institute projects the silver market is heading for the sixth year of annual deficit of 46.3 million ounces, noting that while the Iran war clouds the short-term outlook, it strengthens the long-term case for precious metals.

VT Market cited ING’s commodities team and said  "strong domestic demand lifted Chinese silver prices to a premium over international markets and led to arbitrage flows," when China silver imports jumped in March 2025.

ETFs To Tap

iShares Silver Trust

SLV offers exposure to the day-to-day price movements of silver bullion. It has an AUM of $38.9 billion and trades in a heavy volume of 36 million shares a day. It charges a 0.50% annual fee to investors.

Benzinga Edge Stock Rankings indicate that SLV has a Momentum score in the 91st percentile and maintains a strong price trend in the medium- and long-term.

abrdn Physical Silver Shares ETF

SIVR also tracks the performance of silver bullion prices. It is the lowest-cost physically backed ETF in the silver space, with an expense ratio of 0.30% and an AUM of $5.4 billion. SIVR trades about 2 million shares daily.

Benzinga Edge Stock Rankings indicate SIVR has a Momentum score in the 91st percentile and maintains a strong price trend in the medium and long term.

Geopolitics Drags on Silver

Silver has declined about 16% since the US–Iran war began in late February amid fears that rising energy costs would stoke inflation, keeping interest rates higher. With the crisis now in its eighth week and no deal in sight, elevated rates remain a headwind for non-yielding assets like silver.

Donald Trump, late Tuesday, said he has extended the ceasefire with Iran just hours before its expiration, citing ongoing diplomatic efforts.

Despite the recent slide, both the bullion and ETFs remained up year-to-date. Here, we presented their performances:

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