China’s Silver Trading Frenzy Intensifies as Fund Halts New Investments
China's only pure silver fund, the UBS SDIC Silver Futures Fund LOF, has closed its Class C shares to new investors following unsustainable price surges. The People's Bank of China confirmed the MOVE after social media-driven demand overwhelmed repeated risk warnings. Retail traders, fueled by online guides, pushed the fund's market price to 60% above its underlying asset value—Shanghai Futures Exchange silver contracts.
Precious metals are attracting unprecedented interest as year-end approaches. Silver, gold, and platinum prices approach record highs amid limited local investment options. Industrial metal silver has transformed into a speculative asset this year, with global prices rising 150%—a shift amplified by Xiaohongshu tutorials exploiting arbitrage opportunities between exchange-traded and OTC shares.
