Silver Price Hits New High, Tight Supply of Spot Cargo in the Market with Small Volume of High-Premium Transactions [SMM Daily Review]

During the day, silver prices rose significantly, while the basis for the TD-SHFE silver most-traded 2602 contract remained inverted. Influenced by the Christmas holiday atmosphere, the overseas silver price increase was weaker than the domestic market, leading to a substantial rise in the premium of domestic TD silver prices over LBMA. Due to recent increases in Shenzhen market premiums and investment demand, mainstream quotations from suppliers of national standard silver ingots in Shanghai against the TD were adjusted higher to premiums of 30-50 yuan/kg, while suppliers in Shenzhen adjusted their premiums against the TD higher to 60-80 yuan/kg. Affected by year-end inventory clearing and account closing by downstream industrial users and traders, the total transaction volume in the market declined, with only a small amount of rigid demand transactions occurring at high premiums. Overall, actual spot market transactions remained sluggish ahead of the New Year's Day holiday.