Some bad news for NY...

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China’s Silver buying interest advances’

September 17, 2012

BEIJING (Commodity Online): Buying interest in silver is rising, with the metal “benefiting from its status as the higher-beta, cheaper version of gold,” said Union Bank of Switzerland (UBS) in a commodities snippet.

According to the Zurich based bank, stronger silver prices are attracting investors, particularly in China, which had vacated the market following violent action in 2011.

They noted that SGE silver volumes are at the highest level since May 2011, with 4,062 metric tons traded on Friday alone. This was the highest daily volume since late April 2011 , when silver neared $50 an ounce.

The bank said that, action is similar on the SHFE, where combined volumes picked up significantly since late August.

“It’s clear that silver is rebuilding investor interest here. We will continue to closely monitor participation out of China as investors here have played a significant role in silver’s powerful moves last year,” UBS concluded.