Hong Kong Stock Concept Tracking | Foreign silver is extremely out of stock, and international silver prices have reached a record high and are approaching the $60 mark (with concept stocks)
The Zhitong Finance App learned that on December 5, local time, international silver prices rose significantly, driven by factors such as investors' optimism about the prospects of interest rate cuts by the Federal Reserve and the increase in silver ETF holdings. The London spot silver price once topped $59.33 per ounce during the intraday period, setting a new historical record. The main contract price of silver futures on the New York Stock Exchange once approached the 60 US dollar per ounce mark on the same day, closing at 59.053 US dollars per ounce, a record high.
The industry believes that the continued rise in silver prices is due to a decline in global silver inventories, which has led to a clear tightening of supply in the spot market. Analysts said that foreign silver is extremely out of stock and is now in a stocking stage.
As a “small-cap stock” among precious metals, silver has always been known for its high elasticity. Currently, the total global market value of silver is about 2.7 trillion US dollars, and the total market value of gold is about 27 trillion US dollars. Silver is only one-tenth of gold. This means that even a relatively small amount of capital is enough to drive the price of silver to fluctuate more sharply than gold.
The spot price of silver increased by more than 90% this year, outperforming gold. According to data from the World Silver Association, due to high silver prices, global demand for silver jewelry is expected to be 205 million ounces in 2025, down about 5% year on year; in 2025, total global silver investment demand (silver bullion and ETF) reached 1,334 million ounces, up 8.2% year on year, reaching a record high, accounting for 37% of the total global demand for silver, becoming the core force supporting silver prices.
Some analysts believe that the current price ratio of gold to silver is about 75:1, which is significantly higher than the average of about 60:1 in the past 20 years. This indicates that silver is relatively undervalued in the precious metals sector. According to reports, Bank of America has raised the 2026 silver target price to 65 US dollars per ounce, while US Citi and Standard Chartered predict that from the fourth quarter of 2025 to the first quarter of 2026, the price of silver will stabilize above 55 US dollars/ounce.
As the price of silver rises, physical silver bars are popular among consumers. On December 4, the wholesale silver jewelry and silver ingot store business in Shenzhen Shuibei was booming. The sales price of Shuibei silver jewelry has reached 16.52 yuan/gram, while the wholesale price of silver ingots has risen to 13.378 yuan/gram, setting a record high for Shuibei silver. The owner of a silverware wholesale store in Shuibei said, “Recently, there has been a marked increase in the number of customers buying silverware and silver ingots, especially silver ingots. Because there are no labor costs, many customers have bought them for investment.”
Zhang Chining, an analyst at Cathay Pacific Junan Futures, said that the rise in silver prices is mainly affected by three factors. First, the long-term optimistic logic of precious metals has not changed, and the restoration of macro-sentiment due to fluctuations in US stocks has provided support for silver; second, the tight pattern of global silver spot tension has not been resolved. In particular, stocks on the Gold Exchange have fallen to historic lows in the previous period, boosting upward flexibility in prices around and after the delivery month; third, the current liquidity environment is more favorable to varieties with strong financial attributes. Compared to physical goods, silver is more favorable to varieties with strong financial attributes. Demand varieties have more room for growth.
BOC Securities believes that silver may be better than gold in terms of flexibility to make up gains. Gold is still in an upward channel, but it is currently in a phase of high fluctuation after an accelerated upward trend. The key to catalyzing the subsequent market is whether the “declining real interest rate” and the “weakening dollar” can resonate. In contrast, silver is more deterministic in the short term. The “gold to silver ratio”, which is currently at a high level in history, contains more room for restoration, while growing demand in industries such as photovoltaics provides support for silver prices, and lower inventory levels make prices flexible or superior to gold in the short term.
Related concept stocks:
Zijin Mining (02899): As a global comprehensive mining giant such as silver, copper, and zinc, Zijin Mining has benefited from rising prices of metals such as gold and copper and the layout of the lithium battery industry. It has strong long-term growth and may benefit from the increase in industrial metals prices. According to the 2025 three-quarter report, the company achieved operating income of 254.2 billion yuan in the first three quarters, an increase of 10.33% over the previous year, and realized net profit attributable to shareholders of listed companies of 37.864 billion yuan, an increase of 55.45% over the previous year.
China Baiyin Group (00815): China Baiyin Group is a national professional silver producer and comprehensive silver operator. Its business covers the entire industry chain of silver manufacturing, jewellery retail and silver trading. The company is certified by the London Bullion Market Association (LBMA) and produces “silver ingots with a purity of 99.999%”, which is at the highest level in the world. In 2024, the company achieved total revenue of 4.319 billion yuan, a year-on-year decrease of 20.97%; net profit to mother was 9.966 million yuan, a year-on-year decrease of 31.5%.
Jiangxi Copper Co., Ltd. (00358): Jiangxi Copper is an important silver production base in China. Its “Jiangtong” silver is a registered product of the London Gold and Silver Market Association (LBMA) and has international recognition. Although the company's silver business accounts for a relatively small share (about 3.25%), as a by-product of copper and gold smelting, its production is stable and internationally competitive. If the price of silver continues to strengthen, or if industrial demand grows further, this business may bring additional benefits to the company.