Key Points
- Chinese investor Bian Ximing earned nearly $3 billion betting on rising gold prices in Shanghai
- He has now taken a massive short position on silver, effectively betting that silver prices will drop
- Recent market swings have already made hundreds of millions in paper gains, highlighting the risks and rewards of futures trading
ISLAMABAD: A Chinese billionaire who made a fortune betting on gold is now turning his attention to silver, highlighting the dramatic swings and high-stakes strategies in global commodities markets, according to Bloomberg’s analysis of exchange data.
Bian Ximing, who largely operates from Gibraltar and keeps a low profile, earned almost $3 billion by betting that gold prices would rise on the Shanghai Futures Exchange since early 2022. Now, according to Bloomberg and sources familiar with his trades, he has taken the exchange’s largest “short position” in silver.
A short position is a financial bet that the price of a commodity will fall. A short seller sells a particular stock or commodity without having it in hand in anticipation of future delivery at a lower price. In Bian’s case, this involves roughly 450 tons of silver, equivalent to 30,000 contracts.
As silver prices have recently tumbled, this position has already yielded a paper gain of about 2 billion yuan (roughly $288 million), with net profits estimated at 1 billion yuan ($144 million) after factoring in previous trading losses.
Trading in futures contracts like these allows investors to profit from both rising and falling prices, but it comes with significant risks. A sudden jump in silver prices could have triggered heavy losses. Bian has already had to liquidate some positions at a loss, Reuters reports, indicating possible volatility in the silver market.
Silver’s swings are influenced by global industrial demand, investor speculation, and wider economic factors, making it one of the more unpredictable commodities. Bian’s trades underscore how futures markets amplify both potential rewards and risks, turning metals like silver into vehicles for large-scale speculation.
This story illustrates the increasingly sophisticated—and high-risk—strategies used by traders to capitalise on global commodity movements, even by those who already hold enormous fortunes.
