Silver's soaring prices have been a hot topic, with the metal repeatedly hitting new highs. But here's where it gets controversial: the investment demand in Shenzhen is a key driver, pushing spot premiums to new levels.
For three consecutive trading days, silver prices have been on an upward trajectory, reaching unprecedented intraday highs. Meanwhile, the basis for the most-traded TD-SHFE silver 2602 contract has narrowed and even inverted at times. In Shanghai, mainstream quotes for national standard silver ingot suppliers have remained stable, with premiums ranging from 0 to 5 yuan/kg against TD or near parity with the SHFE silver 2602 contract. However, in Shenzhen, premiums have surged significantly, reaching 10-20 yuan/kg against TD.
As we approach the year-end, downstream users are generally closing accounts for inventory checks, resulting in a sharp decline in procurement demand. This has left market transactions largely driven by investment demand, with actual market turnover remaining moderate.
This surge in investment demand, particularly in Shenzhen, has had a significant impact on spot premiums. But why is this happening? Is it a sign of a broader trend or just a temporary blip? And what does this mean for the future of silver prices? These are questions that investors and analysts are grappling with.
Remember, all data, except for publicly available information, is processed by SMM based on various sources and is for reference only. It does not constitute decision-making advice.
Stay tuned for more insights and analysis on the silver market and its intriguing developments. And don't forget to share your thoughts and opinions in the comments below! We'd love to hear your take on this silver surge and its potential implications.
