Tracking of Hong Kong stocks concept | Severe shortage of foreign silver, international silver prices hit historic highs approaching $60 per ounce (with concept stocks attached)

On December 5th local time, driven by optimistic investor sentiment towards the prospect of a rate cut by the Federal Reserve and an increase in holdings of silver ETFs, the international silver price significantly rose. The spot silver price in London once broke through $59.33 per ounce intraday, setting a new record. The main contract price of silver futures on the New York Mercantile Exchange reached close to $60 per ounce at one point that day, closing at $59.053 per ounce, hitting a historic high. Industry insiders believe that the continuous rise in silver prices is due to a decrease in global silver inventories, leading to a noticeable tightening of supply in the spot market. Analysts indicate that there is an extreme shortage of silver abroad and that the market is currently in a hoarding phase. As a "small-cap stock" among precious metals, silver has always been known for its high elasticity. Currently, the total global market value of silver is approximately $2.7 trillion, while the total market value of gold is around $27 trillion, with silver only equivalent to one-tenth of gold. This means that even a relatively small amount of capital invested is enough to drive the price of silver to have more drastic fluctuations compared to gold. This year, the price of spot silver has increased by over 90%, outperforming gold. Data from the World Silver Council indicates that due to the high silver price suppression, the global demand for silver jewelry in 2025 is expected to be around 205 million ounces, which is a decrease of about 5% compared to the previous year. The total global investment demand for silver (silver bars, coins, and ETFs) in 2025 is expected to reach 1.334 billion ounces, an increase of 8.2% compared to the previous year, reaching a historical high and accounting for 37% of the total global silver demand, becoming a core force supporting the silver price. Some analysts believe that the current gold-to-silver price ratio of about 75:1 is significantly higher than the average level of around 60:1 in the past twenty years, indicating that silver is relatively undervalued within the precious metals sector. According to reports, Bank of America has raised its target price for silver in 2026 to $65 per ounce, while Citigroup and Standard Chartered predict that the price of silver will stabilize above $55 per ounce from the fourth quarter of 2025 to the first quarter of 2026. With the rise in the price of silver, physical silver bars have become popular among consumers. On December 4th, a wholesale silver jewelry and ingots shop in Shuibei, Shenzhen, was bustling with business. The selling price of silver jewelry in Shuibei has reached 16.52 yuan per gram, while the wholesale price of silver ingots has risen to 13.378 yuan per gram, reaching a historical high. The owner of a silver jewelry wholesale shop in Shuibei stated, "There has been a noticeable increase in customers buying silver jewelry and ingots recently, especially ingots, because there is no labor cost, and many customers buy them for investment purposes." Zhang Chineng, an analyst at Guotai Junan Futures, stated that the rise in silver prices is mainly influenced by three factors. First, the long-term optimistic logic of precious metals remains unchanged, and the macro sentiment repair brought by the volatility of the US stock market provides support for silver; second, the global tight situation of silver spot has not been resolved, especially as inventories at the Shanghai Futures Exchange and the London Metal Exchange have fallen to historical lows, pushing prices to be resilient in the month before and after delivery; third, the current liquidity environment favors financial assets, and silver, compared to physical demand-driven products, has more upward potential. BOC International believes that the resilience of silver to catch up in price may surpass gold. While gold is still in an upward trend, it is currently in a high-level volatile phase after accelerating its rise, and the key catalyst for the subsequent market is whether there can be a resonance between "declining real interest rates" and "weakening US dollar." In contrast, silver has a stronger short-term certainty. The "gold-to-silver ratio" at historical highs suggests a greater potential for recovery, and the growth in demand in industrial sectors such as photovoltaics provides support for silver prices. The lower inventory levels also indicate that its price may have stronger short-term resilience compared to gold. Related stocks: Zijin Mining Group (02899): Zijin Mining Group is a global comprehensive mining giant of silver, copper, zinc, and other metals. It benefits from the rise in metal prices such as gold and copper and its layout in the lithium battery industry, showing strong long-term growth potential and may benefit from the rise in industrial metal prices. The third-quarter report for 2025 showed that the company achieved operating income of 254.2 billion yuan, a year-on-year increase of 10.33%; net profit attributable to shareholders of the listed company was 37.864 billion yuan, a year-on-year increase of 55.45%. CHI SILVER GP (00815): CHI SILVER GP is a national professional silver producer and comprehensive operator of silver, covering the entire industry chain of silver manufacturing, new jewelry retail, and silver trading. The company has LBMA certification, producing silver bars with a purity of 99.999%, reaching the highest level globally. In 2024, the company's total operating income was 4.319 billion yuan, a year-on-year decrease of 20.97%; net profit attributable to the parent company 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. Its "Jiang Copper" silver is a registered product of LBMA, with international recognition. While silver business accounts for a small proportion (about 3.25%), as a byproduct of copper and gold refining, its production is stable and internationally competitive. If the price of silver continues to rise, or if industrial demand further increases, this business may bring additional revenue to the company.