Chinese Trader's $300M Silver Bet Pays Off as Prices Plummet 16%
Chinese billionaire trader Bian Ximing has made a bold bet against silver—and it has paid off. His short position, worth nearly US$300 million, has generated massive paper profits as silver prices today fell sharply since late January. The move highlights the volatility in precious metals trading, particularly on the Shanghai Futures Exchange (SHFE), a key hub for global silver and gold markets.
Bian began building his short position in late January, just as silver prices today hit record highs in Shanghai. His bet involved roughly 30,000 contracts, equivalent to about 450 metric tons of the metal. Since then, silver has dropped by more than 16 percent, boosting the value of his position.
The short trade is now estimated to be worth around 2 billion yuan (US$288 million) in paper gains. After accounting for earlier losses, Bian's net profit from the silver short stands at roughly 1 billion yuan. His strategy capitalised on the price decline, turning a well-timed wager into a major financial win.
The SHFE plays a crucial role in global precious metals trading, especially for silver and gold. China dominates over 90 percent of worldwide production, making the exchange a major force in physical delivery and price movements. While exact trading volumes compared to COMEX or the London Metal Exchange remain unclear, the SHFE's influence in Asian markets is undeniable.
Bian's short position has proven highly profitable, with net gains reaching around 1 billion yuan. The trade underscores the risks and rewards in silver markets today, where price swings can create substantial opportunities. His success also reflects the growing importance of Chinese exchanges in shaping global commodity trends.
