Hong Kong Stock Concept Tracking | Silver Prices Hit Historic High Again, Up Nearly 90% Year-to-Date (with Concept Stocks)

Due to tight supply and expectations of a rate cut by the US this month, silver prices hit a historic high. The price of silver broke through $57 per ounce, surpassing the previous high set last Friday - the price of silver soared nearly 6% that day. With the US labor market continuing to weaken and Fed officials making a series of dovish remarks, the market is now convinced that the Fed will cut rates by 25 basis points in December. Concerns about tight global market supply have also supported silver prices. Despite a record amount of silver entering London to alleviate historical supply tightness, the one-month silver borrowing cost remains high. Other trading centers are also under pressure, with exchange data showing that silver inventories in Shanghai Futures Exchange warehouses recently fell to the lowest level in nearly a decade. Silver's strong performance in recent times has been driven by multiple factors, including market expectations of a Fed rate cut in December, continued fund inflows into ETFs supported by precious metals, and ongoing global supply tightness. This recent historic high is just over a month since severe supply squeezes occurred in London's major trading centers last month. At that time, a shortage of inventory in London led to a surge in prices, even higher than prices in Shanghai and New York. Despite approximately 54 million ounces of silver recently flowing into the London market to help ease the tightness, supply remains tight, with the one-month silver borrowing cost still significantly higher than normal. The market is also watching for new trade risks that silver may face. Silver was listed as a "critical mineral" by the US Geological Survey in November, which means it may be subject to tariff discussions in the future. Since early October, 75 million ounces of silver have been withdrawn from the New York Comex warehouses, but due to concerns that US silver might suddenly become more expensive, many traders are cautious about shipping the metal overseas, further exacerbating tightness in foreign markets. Silver-related Hong Kong stocks: CHI SILVER GP (00815): CHI SILVER GP is a leading silver producer and comprehensive operator in the silver business in China, with operations covering the full industry chain of silver manufacturing, jewelry retail, and silver trading. The company has LBMA certification, and its "silver ingots purity reaching 99.999%" are at the highest level globally. In 2024, the company achieved total operating income of RMB 4.319 billion, a year-on-year decrease of 20.97%; net profit attributable to the parent was RMB 9.966 million, a year-on-year decrease of 31.5%. Zijin Mining Group (02899): As a global comprehensive mining giant of silver, copper, zinc, and other metals, Zijin Mining Group has benefited from the rise in prices of metals such as gold, copper, and the layout of the lithium battery industry. With strong long-term growth potential, it may benefit from the rising prices of industrial metals. Zijin Mining Group's first-quarter report showed that the company achieved operating income of RMB 78.928 billion, a year-on-year increase of 5.55%; net profit attributable to the parent was approximately RMB 10.167 billion, a year-on-year increase of 62.39%, maintaining its leading position in the industry. JIANGXI COPPER (00358): Jiangxi Copper is an important silver production base in China, and its "Jiang Copper brand" silver is a registered product of the LBMA with international recognition. Although the proportion of its silver business is relatively small (about 3.25%), as a by-product of copper and gold smelting, its output is stable and internationally competitive. If silver prices continue to rise and industrial demand further increases, this business could bring additional revenue to the company.