Silver Prices Rose for Consecutive Days, Spot Market Showed Strong Fear of High Prices [SMM Daily Review]

Precious metal prices held up well today, with the spot-futures price spread of Shanghai silver 2510 contract narrowing in the morning session, and suppliers showing strong willingness to offload cargo. According to SMM, the premium of spot standard silver ingot warrants in Shanghai against TD was lowered to 0-2 yuan/kg, while large smelters' silver ingots were quoted at a premium of 2-3 yuan/kg against TD. However, it was learned that some TD-discounted cargoes were still being sold in the market. After the discounted supplies were exhausted, a small amount of standard silver ingots with slight premiums saw limited rigid-demand transactions. Compared with Shanghai, consumption in Shenzhen performed relatively weaker, with suppliers quoting a discount of 20-22 yuan/kg against the Shanghai silver 2510 contract, while standard silver ingots with TD premiums faced relatively difficult transactions. As silver prices continued to rise, the spot market was dominated by fear of high prices, with smelters and speculators still actively selling on rallies, while downstream rigid-demand buyers cautiously negotiated and adopted a wait-and-see approach, resulting in overall sluggish market transactions.