But the country exports even more than it consumes. With an all-time record production of 7,196 tons of silver in 2005, China has become the world's third biggest silver supplier.

Exports of silver rose to 4000 tons in 2006, up by a third from the 3050 tons notched up in 2004.

Consumption at home surged 190 percent to 2600 tons in 2005 from a modest 900 tons in 1985. Despite the constant fluctuations in the prices of gold and silver on the international market, China's silver consumption has continued to grow steadily in recent years, said the association.

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