On December 30th, a leading silver fund resumed trading and was immediately sold off, hitting the daily limit down at one point, with a single-day trading volume exceeding 650 million yuan and a decline of 7.35%.

The underlying logic is actually not complicated: some time ago, due to high premiums being driven up, attracting a large amount of arbitrage capital. But such premiums are ultimately unsustainable—quickly narrowing from nearly 70% to around 30%, with arbitrage traders beginning to sell off and realize gains, leading to this wave of decline.

Interestingly, at the same time, the international silver market was rebounding. This really explains the situation well. The premium distortion of domestic fund products is essentially a mismatch between on-market and off-market price mechanisms. When arbitrage opportunities are squeezed, capital naturally seeks an exit—thus creating this contrasting scene of one cold and one hot.

This also serves as a reminder to many investors: be cautious when chasing high-premium assets, as the premium rate itself is subject to mean reversion pressure.