Silver Prices Fluctuated at Highs, Spot Market Saw Limited Trading [SMM Daily Review]

During the day, silver prices consolidated at high levels, with the spot-futures price spread for the TD-SHFE silver most-traded 2602 contract in backwardation. Approaching the year-end and the Christmas holiday closure in overseas markets, a large volume of market transactions came to a temporary halt. Influenced by recent premium increases in the Shenzhen market, mainstream quotations for national standard silver ingot suppliers in Shanghai against TD were adjusted higher to premiums of 10-20 yuan/kg, with individual traders holding back small quantities at premiums of 20-35 yuan/kg against TD. Premium quotations in Shenzhen varied significantly; although extreme quotes of TD premiums at 50-100 yuan/kg existed in the market, and some jewelry end-users showed interest in small-volume, high-premium transactions, industrial downstream end-user purchases or bulk transactions remained within TD premiums of 10 yuan/kg. Overall market turnover was thin due to factors such as year-end closing, and the premiums for transactions driven by investment demand varied widely. Wait-and-see sentiment prevailed in the market, and actual transactions were generally weak.