On February 9, the Silver Fund LOF experienced a sharp rise after hitting the downside limit upon resumption of trading, with its gain expanding to as much as 8% at one point. As of the latest update, it was up 6.45%.
In international markets, both spot gold and silver prices climbed rapidly. Spot gold rose more than 1.5% during the session, breaking through $5,040 per ounce, and was up 1.29% at the time of writing. Spot silver reached above $81 per ounce, gaining over 4%. Domestic precious metals futures also saw significant increases, with platinum rising more than 9% and Shanghai silver futures climbing over 8%.
On February 6, the Silver Fund LOF opened and immediately hit the downside limit again, trading at 3.099 yuan. This marked the fifth consecutive trading day since its resumption on February 2 that the fund opened at the daily loss limit.
Earlier, on the evening of February 2, influenced by a sharp decline in international silver prices, the fund management company issued an announcement stating that due to a significant divergence between international silver prices and Shanghai Futures Exchange silver futures prices, it would adjust the fund's valuation based on major international market prices at 3:00 PM on the valuation date to fairly reflect the fund's asset value.
In response to ensuing disputes, the fund company released another announcement on February 6 addressing investor concerns. The announcement highlighted three key points: first, emphasizing its commitment to prioritizing investors and striving to minimize the impact of the valuation adjustment; second, improving service channels by establishing a dedicated working group to develop relevant solutions and supporting investors in resolving their concerns through mediation or arbitration; and third, pledging active support for related procedures while assuring the company's ability to protect investors' legitimate rights.
Despite short-term volatility in the silver market, some institutions remain optimistic about the long-term outlook for gold and silver. A senior associate director at a research firm previously noted that while market leverage and sentiment are normalizing after recent sharp declines, the underlying logic for a long-term bull market in gold and silver remains intact, supported by expectations of eventual interest rate cuts and renewed buying interest at lower price levels.
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