Carsten Menke, head of next-generation research at Baosheng Switzerland, said that recent trends in the gold and silver market are mainly driven by capital flows rather than fundamentals. He added that speculative activity in the commodities market has intensified in the past few cycles, particularly in the silver market and the Shanghai Futures Exchange. He said that China's announcement of export controls appears to be a fundamental factor further fueling the bullish sentiment in the silver market. He added that having been said, Swiss Baosheng believes that these control measures are very similar to the Chinese government's controls on rare earths, and restrictions on rare earths have not hindered shipments for a long time. Meanwhile, the silver market seems to be ignoring the development of China's solar energy industry, where three manufacturers have announced they will abandon the use of silver due to cost reasons.

Carsten Menke, head of next-generation research at Baosheng Switzerland, said that recent trends in the gold and silver market are mainly driven by capital flows rather than fundamentals. He added that speculative activity in the commodities market has intensified in the past few cycles, particularly in the silver market and the Shanghai Futures Exchange. He said that China's announcement of export controls appears to be a fundamental factor further fueling the bullish sentiment in the silver market. He added that having been said, Swiss Baosheng believes that these control measures are very similar to the Chinese government's controls on rare earths, and restrictions on rare earths have not hindered shipments for a long time. Meanwhile, the silver market seems to be ignoring the development of China's solar energy industry, where three manufacturers have announced they will abandon the use of silver due to cost reasons.