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China: Silver's surge sparks investment frenzy in China

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[Voiceover] In China, soaring silver prices are fueling the metal's rise as a premier investment asset. At markets in Shuibei, a major jewelry trading hub in Shenzhen City, the latest silver rally has trigged a sales boom, with heavy-weight jewelry pieces and investment bars leading the charge. This trader traveled here all the way from east China’s Shandong Province and was lucky enough to secure several of the coveted 500-gram silver bars. [Soundbite] Guo, trader: "I bought the last few silver bars they had here. There's simply no inventory left in the entire Shuibei area. The demand is so insane that even my regulars or relatives have to pay upfront to secure an order. I even get calls in the middle of the night from people desperate to get their hands on silver." [Voiceover] Some retailers say they are now offloading their silver as soon as it arrives under a buying frenzy not seen in a decade. [Soundbite] Ai Jiawei, manager, silver product showroom: "Over the past ten days, there's been a huge influx. People from the catering industry, from all walks of life, are flocking to Shuibei to inquire about the prices of silver bars and investment-grade stuff. It's insane. I've been in the business for over a decade, and I've never seen anything like this. We're still backed up on customer orders. We're just trying to ship out everything that comes in each day." [Voiceover] Data shows that by mid-October, silver prices had risen by around 70 percent since the beginning of the year, outshining gold's gains of some 55 percent. Analysts attribute the increase to a growing demand for safe-haven assets of which silver is one. Like gold, silver has become popular during the current climate of global economic uncertainty. [Restrictions: No access Chinese mainland]

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