Hong Kong Customs Seize Major Silver Smuggling Operation Bound for China
According to the Economic Desk of Webangah News Agency, Hong Kong customs officers discovered a large quantity of silver hidden in a vehicle en route to China during a routine inspection. The contraband, concealed as ordinary travel snacks, was found to contain substantial amounts of the precious metal, cut into pieces and wrapped in plastic.
The seizure underscores how the dramatic surge in precious metal prices in early 2026 is transforming criminal operations and disrupting supply chains. With silver prices in London markets rising over 60% since the beginning of the year and setting new records, price disparities have fueled cross-border arbitrage attempts.
As a free port, Hong Kong exempts most imports and exports from tariffs and value-added taxes. Smuggling precious metals into China allows criminals to evade heavy import duties, VAT, and corporate income taxes. Under Hong Kong’s Import and Export Ordinance, smuggling carries severe penalties, including fines up to HKD 2 million and seven years imprisonment.
While gold has long been the focus of illegal border transfers, silver has emerged as a prime target in 2026. The white metal’s price surged over 140% throughout 2025 and continues its upward trajectory in January 2026. Analysts attribute this spike to supply constraints and growing industrial demand, particularly from the photovoltaic sector for solar panels. Geopolitical instability has further enhanced silver’s appeal as a safe-haven asset alongside gold.
This incident follows other recent precious metal seizures by Hong Kong authorities. In October 2025, customs at Hong Kong International Airport investigated two air smuggling cases, confiscating 60kg of gold-silver alloy and 80kg of suspected gold destined for Japan and Vietnam, valued at approximately HKD 100 million.
