China Tightens Silver Exports as the US Takes Venezuela

As markets head into a new trading week, two developments have unsettled the precious metals complex. China has moved to tighten its grip on silver exports, while the United States has launched a direct military operation in Venezuela. President Nicolás Maduro has been captured and transferred to New York to face federal charges.

China’s influence in the silver market has long been significant, but a recent policy shift has injected fresh anxiety. From January 1, authorities have tightened controls on silver exports, not through an outright ban but via a strict licensing regime. Only a limited number of firms are now authorised to export silver, and officials have elevated the metal to the same strategic classification as rare earths. This gives the state far greater discretion over who can sell silver abroad, and in what quantities.

Any reduction in Chinese export volumes matters in a market as thinly supplied as silver. Unlike gold, above-ground inventories are limited, and global mine production only just balances total demand. When a major exporter reins in outflows, the impact can be pronounced, particularly at a time when investor risk appetite is already softening.

Shortly after the Chinese announcement, geopolitical risk escalated further. The US military launched strikes in Venezuela and seized President Maduro as part of an operation targeting narcotics trafficking and corruption. He has since been transported to New York and is expected to face federal charges linked to alleged drug trafficking. Former president Donald Trump has stated that the United States will temporarily assume control of Venezuela during a transition away from Maduro’s rule.

The removal of a sitting head of state by force has drawn sharply divided reactions. Some US political figures have welcomed the move as overdue accountability for a leader accused of presiding over economic collapse and entrenched criminal networks. Others have condemned the operation as a breach of international law and a dangerous precedent.

Venezuela holds the world’s largest proven oil reserves, yet even an aggressive effort to restore its energy sector would take years. In the meantime, the political shock adds another layer of uncertainty to global energy markets and reinforces demand for safe havens. Silver, sitting at the intersection of industrial demand and monetary hedge, may be particularly well positioned in such an environment.