The precious metals market has been completely boiling over recently. Spot gold has stabilized above $4,500 per ounce, while spot silver has surged to $72.33 per ounce, with gains this year of 72% and 150% respectively—such a rally can indeed be quite intoxicating.

The exuberant market sentiment has spread to related investment products. In mid to late December, many commodity-themed fund products hit the daily limit-up collectively, including gold, non-ferrous metals, and silver funds, with all sectors showing strong performance. Among them, a certain silver-themed fund performed the most "extremely"—its closing price soared to 3.116 yuan, with a staggering premium rate of 68.16% over its net value of 1.7987 yuan. This situation was clearly abnormal, leading to a suspension of trading until 10:30 the next morning.

Fund managers quickly tightened subscription limits and issued risk warnings consecutively. The issue is clear: high premium rates cannot be sustained in the long run; this is a sign of extremely euphoric market sentiment. Once the sentiment cools and the premium narrows, those blindly chasing the high will have to bear the losses from shrinkage.

More importantly, precious metals are inherently volatile, especially silver. The market has already entered an overbought zone on technical charts, with crowded participation and significantly reduced risk capacity. In such an environment, any small disturbance could trigger a rapid correction. Want to participate? First ask yourself if you truly understand the risks.