Silver Prices Retreat from Highs, Spot Market Investment Demand Remains Strong [SMM Daily Review]

Intraday silver prices retreated from highs, with the basis for the TD-SHFE silver 2602 contract remaining inverted. Trading in the spot market today was still dominated by investment demand, while suppliers' offer spreads widened. Many traders in Shanghai suspended quotations after year-end closing, with a few suppliers reporting small transactions of large-brand silver ingots at a premium of 100 yuan/kg against TD or a premium of 150-180 yuan/kg against the SHFE silver 2602 contract. Some other suppliers noted difficulty in concluding deals at high premiums, with only rigid demand transactions concluded at a premium of 20-50 yuan/kg against TD. Available spot cargo in Shenzhen remained tight, with suppliers maintaining premiums of 100-120 yuan/kg against TD, but overall trading was sluggish. After today's price pullback, some downstream enterprises made small stockpiling purchases at lower levels. Industrial demand remained sluggish ahead of the New Year holiday, and the spot market continued to be dominated by overheated investment-driven trading.