SGE silver trade climbs 751% as China trims export quota

Ever increasing domestic consumption and climbing trade volumes at its exclusive precious metal exchange, Shanghai Gold Exchange (SGE) prompted China to trim silver export quotas for next year. According to official data from country's Commerce Ministry, China set a target of 5,378 tons of silver for exports for next year, from 5,670 tons this year. Anhalysts said China's interst in silver witnessed an upsurge this year with trading volumes for the precious metal have been soaring on the SGE. The trading volume of silver forwards on the bourse surged 751 percent year-on-year in 2010. Meanwhile, the volume in September this year was more than six times that of the same period in 2010. The sudden passion for investment in the metal, analysts say, is the result of sluggish performances by the stock and property markets - the darlings of Chinese investors. Declines in the two markets left wealthy Chinese with fewer choices of where to park their money, and so they are banking on precious metals instead.

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