“Silver can’t be bottom-picked. I entered at 14 yuan per gram and, in the blink of an eye, it fell to 13!” One investor entered when it was 33 yuan—now it has already been “cut in half.”

Reporter | Zhao Jingzhi

Editor | He Xiaotao, Zhang Yiming, Du Hengfeng

Proofreader | Jin Mingyu

"It's impossible to bottom-fish silver right now. You enter at 14 yuan per gram, and in a blink, it drops to 13 yuan per gram." On June 25, the main silver futures contract plummeted by 7.28%. A reporter from National Business Daily visited Shuibei, the country's largest gold and jewelry trading market. An industry veteran with years of experience in gold and silver told the reporter that during this round of precious metal declines, some ordinary investors have suffered significant losses.

One investor told the reporter that he bought silver at 33 yuan per gram, and now the price has been cut in half. "Now, two grams can only sell for what one gram used to cost."

On the afternoon of June 25, the reporter observed at the Shuibei Jinzhan Jewelry Plaza that foot traffic had not significantly decreased due to the price drop. A constant stream of citizens came to inquire, try on, and seek advice on gold and silver. "But the wait-and-see sentiment is indeed stronger now, especially since gold has a tradition of 'buying on the rise, not the fall,'" a merchant told the reporter.

A bullion supplier told the reporter that as prices undergo a deep correction, the volume of gold and silver purchases has begun to rise.

Bullion Supplier: Gold and Silver Trading Volume Begins to Rise

Silver and gold prices have fallen sharply in recent days. Taking June 25 alone, the main gold futures contract fell 2.8% to 872 yuan per gram, while the main silver futures contract dropped 7.28% to 13.81 yuan per gram.

"It's impossible to bottom-fish silver. Enter at 14 yuan per gram, and in a blink, it drops to 13 yuan per gram. Investors who entered at the high are now down more than half." Zhang Qiang (pseudonym), a bullion supplier in Shuibei, Shenzhen, told the reporter.

Since silver prices fell more sharply, the reporter interviewed several investors holding silver.

One investor told the reporter that he had bought 60k yuan worth at over 30 yuan per gram and doesn't know when he'll break even. "I won't sell for now, plan to hold until the end of the year. I won't buy silver anymore."

Zhang Qiang told the reporter that the silver price drop has affected more retail investors seeking speculative profits, while Shuibei merchants and bullion suppliers have not been significantly impacted.

Zhang Qiang explained that merchants hold long-term base inventories and use a "sell a batch, restock immediately" model, profiting steadily from bid-ask spreads. "Our inventory is for operational turnover, not like stocks that freeze liquidity. We have customers picking up goods every day, so even paper losses don't affect normal operations. Moreover, many merchants place small-batch orders, restocking only when clients have demand, actively reducing large-scale hoarding and lowering risk and capital pressure."

In addition, Zhang Qiang noted that silver trading volume has been recovering. "When silver falls from a high, you notice a clear price elasticity. When it dropped from 35 yuan per gram to 25 yuan per gram, everyone chose to wait and see, and silver buyers plummeted. But now that it's fallen from 25 yuan per gram to 13 yuan per gram, buyers are gradually increasing. And not just silver—gold trading volume has actually been quite large recently."

Gold Recycler: Few People Are Selling Gold Now

Aside from silver, gold prices have also slid from a peak of over 1,200 yuan per gram to the current 800-plus yuan per gram, a drop of nearly 400 yuan per gram. A gold recycler in Shuibei told the reporter that now is not the time to sell gold holdings. "Definitely can't sell now. Recently, very few people have come to sell gold. The price is too low. If you don't need the money, it's best not to sell."

Fewer customers are selling gold, and those buying gold are more inclined to "wait and see." The reporter noted that many consumers wanting to buy gold are browsing at Shuibei, but not many are actually spending money. A merchant told the reporter that gold has a tradition of "buying on the rise, not the fall," so it's normal for people to wait when prices drop. However, there are still a fair number of buyers with real demand, since gold is a necessity for many. "Some people expect prices to rise, some expect them to fall, and others have actual needs—it's unpredictable."

Regarding precious metal investments, a seasoned practitioner in Shuibei told the reporter that many investors around him have already suffered losses from buying silver. "Investing requires your own judgment." The practitioner said that first, you should look at long-term investment value, not just trade based on the hype around precious metals. Second, you need to control the amount invested. "It has to be money you can afford to hold. Even if it drops, you won't panic, and it can rise again later. But if your position is too large, losses not only affect your mood but can even trigger family conflicts."

Central Bank Continues to Buy Gold, Gold ETFs Shrink Significantly

Recent sharp fluctuations in gold and silver prices have created a notable divergence in China's domestic gold market.

According to official reserve data from the State Administration of Foreign Exchange, as of the end of May 2026, China's central bank had increased its gold reserves for 19 consecutive months, adding another 320k ounces that month, continuing to diversify reserve allocation.

The World Gold Council's 2026 Central Bank Gold Reserves Survey shows that escalating geopolitical and global economic uncertainties are the core drivers behind central banks' sustained gold purchases. Short-term gold price volatility has not altered the strategic logic of official long-term gold allocation.

Furthermore, survey data reveals that 89% of central bank reserve managers expect global gold reserves to continue growing over the next 12 months, and 45% of surveyed central banks plan to actively increase gold holdings, with the willingness to buy reaching an all-time high. The global official gold buying spree is set to continue, and gold's long-term safe-haven and reserve allocation value remain prominent.

However, in contrast to institutional long-term accumulation, individual investment funds have been steadily exiting the gold market. The scale of domestic gold ETFs shrank significantly overall in the second quarter, with investment sentiment clearly cooling. The reporter noted that since the end of the first quarter, gold ETF scale has shrunk by approximately 50 billion yuan. Hua'an Gold ETF, a leading fund, saw its scale drop from 60k yuan as of March 31 to currently 320k yuan.

(Editor: Wen Jing)

Keyword:

                                                            Silver