China is the main reason behind the silver pullback. It can’t do anything about the demand so is trying to manage, slow the parabolic.
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As of April 15, 2026, reports indicate that the Shanghai Futures Exchange (SHFE) has halted silver trading, effective Thursday morning, amid extreme volatility and a narrowing supply. This follows a series of regulatory interventions in early 2026, including the suspension of China’s only pure-play silver fund in January and February to curb excessive speculation, high premiums, and to protect investors.
- Trading Halts: The UBS SDIC Silver Futures Fund (LOF) experienced an emergency halt on Jan 30, 2026, with further suspensions for silver funds continuing into February, as noted by Reuters.
- Supply Tightness: China has implemented strict, new, silver export restrictions as of Jan 1, 2026 and is dealing with low reported silver inventories, say Carbon Credits and a YouTube report.
- Market Context: These actions follow a rapid, unsustainable rally in silver prices driven by high demand from the green energy sector (solar panels and electric vehicles) and investors hedging against a weak U.S. dollar, notes CNBC.
