Silver prices experienced a significant drop, with physical silver declining 12% to $74.14 per ounce and COMEX silver futures falling over 5%. The Guotou Ruixin Silver Futures (LOF) fund has faced repeated trading halts due to high price premiums in the secondary market, with over 25 suspensions since December 2025, including a halt on February 2nd.
The trading halts are attributed to the disparity between the fund's market price and its net asset value, driven by speculative trading. Despite over 30 risk warnings and subscription suspensions by the fund company, speculative activity remains high. Analysts predict that while bargain hunters may enter the market, silver prices could continue to decline until the fourth quarter of 2026.
Silver Prices Plunge Amid Trading Halts and Speculation
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