[SMM Silver Market Update] Post-Holiday Silver Ingot Spot Supply Tightens, Premiums Edge Up

On February 25, Hong Kong's Financial Secretary announced measures to develop Hong Kong as a gold trading hub. Following a cooperation agreement with the Shanghai Gold Exchange and the upcoming 2026 launch of the Hong Kong Gold Central Clearing System, the government will pursue three initiatives: offering tax incentives for eligible gold trading and settlement institutions; supporting the establishment of an industry association to consolidate resources, enhance market promotion, and expand networks; and creating a training framework to equip professionals with updated market knowledge and skills.

The Shanghai Gold Exchange (SGE) issued an announcement to adjust the margin ratios and price fluctuation limits for certain gold deferred delivery contracts, effective from the clearing time after the close on February 24, 2026. The specific adjustments were as follows: the margin ratios for Au(T+D), mAu(T+D), Au(T+N1), Au(T+N2), NYAuTN06, and NYAuTN12 contracts were lowered from 21% to 18%; starting from the next trading day, the price fluctuation limits for the aforementioned contracts were simultaneously reduced from 20% to 17%.

The first phase of investment, totaling $7 billion, is allocated to the Josemaria and Filo del Sol projects, with construction scheduled from 2027 to 2030. Upon full operation, the project is expected to produce an average annual output of 395,000 mt of copper, 711,000 ounces of gold, and 22.2 million ounces of silver over the first 25 years; cumulative production in the first decade is projected to reach 2.5 million mt of copper, 5.5 million ounces of gold, and 214 million ounces of silver. Development will proceed in three phases: the first phase focuses on the Josemaria deposit, while the second and third phases prioritize the Filo del Sol deposit.