Silver Fund Surge Raises Eyebrows: Guotai Silver LOF to Resume at 10:30 AM on December 26

The recent extraordinary rally in silver prices is fueling unprecedented speculation in related funds, prompting serious caution from market regulators. Guotai Silver LOF announced a trading suspension beginning December 26 at market open, with resumption scheduled for 10:30 AM the same day. This halt comes as the fund experiences extreme volatility and unsustainable premium levels that have alarmed fund managers.

**The Silver Price Phenomenon**

London silver closed at $71.81 per ounce on December 24, marking a staggering year-to-date gain exceeding 140%. This rally has created a cascading effect across commodity-linked investment products, with silver-focused funds witnessing exceptional performance—or more accurately, exceptional speculation. Guotai Silver LOF exemplifies this trend, with year-to-date returns reaching 254.9%.

**Warning Signals in the Premium**

What's particularly concerning is the secondary market pricing of these funds. Guotai Silver LOF has traded at a premium as high as 68.19%, disconnected from its underlying asset value. The fund manager has explicitly warned investors that such premiums cannot be sustained and pose significant downside risks. Current subscription limits remain at 500 yuan per Class A share, though adjustments are being considered.

**Broader Market Caution**

Guotai Silver LOF is not alone in experiencing trading halts. Multiple commodity and resource-focused LOFs have simultaneously hit their daily limits, prompting numerous fund companies to issue formal high premium warnings. The decision to halt trading until 10:30 AM reflects an industry-wide effort to cool speculative frenzy and protect retail investors from potential losses when premiums inevitably compress.

The message is clear: exceptional returns often signal excessive risk, and the current silver fund craze warrants careful consideration before investing.