Hong Kong stock concept tracking | Silver price continues to soar to record highs London short squeeze situation injects momentum into the uptrend (with concept stocks)

Spot silver prices surged to a new high of over $52.50 per ounce, surpassing the record set by the Hunt brothers during their attempt to manipulate the market in 1980. Increased demand for safe-haven assets has driven silver prices higher, while an unprecedented short squeeze in the London market has injected new momentum into the rally. London spot silver prices rose by 0.4% at one point, reaching over $52.5868 per ounce, surpassing the peak set in January 1980. Silver is one of the few assets that reached its all-time high during the commodity price surges of the 1970s and 1980s but has not been surpassed since. Concerns about insufficient liquidity in the London market have sparked a global silver buying frenzy, leading to premiums in London rising to levels unseen before compared to the New York market. This has prompted some traders to book cargo space on flights from Atlantic China Welding Consumables, Inc. to transport silver an expensive method usually used for gold transportation to take advantage of the high price differential in the London market. The premium in the early trading on Tuesday was around $1.55 per ounce, lower than last week's $3. The tightening liquidity in the London market directly catalyzed the historic breakthrough in silver prices. As a representative indicator of the cost of borrowing in the spot market, the implied leasing rate for London silver futures for January has risen to 42.72%, indicating a scarcity of silver in the spot market. Goldman Sachs pointed out in a report that the weak liquidity in the silver market, which is about one-ninth the size of the gold market, amplifies price fluctuations. The report stated, "Without central bank buying support for silver prices in the long term, once investment funds withdraw briefly, prices may sharply retreat, easing the previous London supply-demand tension that drove the market." Traders are closely watching the outcome of the U.S. government's imminent "232 investigation" for critical minerals, which includes silver, platinum, and palladium. The market is worried that if these metals are included in a new round of tariff lists, it will further exacerbate supply constraints. After a significant reduction in London's freely available inventory, this could be the catalyst for the recent short squeeze. Silver-related stocks: CHI SILVER GP (00815): CHI SILVER GP is a national professional silver producer and comprehensive silver operator, with business covering the entire industry chain of silver manufacturing, jewelry retailing, and silver trading. The company has LBMA certification, producing silver bars with a purity of 99.999%, at the highest level globally. In 2024, the company achieved total operating revenue of 4.319 billion yuan, a year-on-year decrease of 20.97%; net profit attributable to shareholders was 9.966 million yuan, a year-on-year decrease of 31.5%. JIANGXI COPPER (00358): Jiangxi Copper is an important silver production base in China, with its "Jiang Copper" silver being a registered product with the LBMA, internationally recognized. Although the silver business accounts for a small proportion (about 3.25%), as a by-product of copper and gold smelting, its production is stable and internationally competitive. If silver prices continue to strengthen or industrial demand further increases, this business may bring additional income to the company.