Guotou Silver LOF reaches the daily limit in the afternoon, with a premium rate of 51.63%

On March 2nd, according to CEX market data, the A-shares Guotou Silver LOF (code 161226) hit the daily limit in the afternoon, with a premium rate of 51.63%. Guotou Silver LOF has repeatedly experienced extreme market conditions in recent months, with sharp increases to the daily limit followed by declines to the limit down, intensifying sentiment and scarcity battles. Since the outbreak of the US-Iran conflict last weekend, the silver investment craze has reignited. However, due to limited silver investment channels in the A-share market, retail investors face very low single-day limits, leading to a surge of new funds rushing into the secondary market, causing the Guotou Silver LOF to trade at a severe premium and deviate from its true net value. The high premium attracts more speculative funds, resulting in daily limit lock-ups, which further widen the premium in a positive feedback loop. Once silver prices pull back, it often triggers consecutive limit-downs, and investors should be cautious of the risks.