First Capital Futures: SH Silver rises sharply then pulls back, volatility shows a rebound

Silver prices rose yesterday, but Shanghai silver retreated in the evening, mainly due to the narrowing of the domestic and international price gap. Last year, we repeatedly pointed out that Shanghai silver was overvalued, with its premium once exceeding 3,000 yuan per kilogram. Now, it has fallen back to 1,200-1,300 yuan per kilogram, but there is still significant room for further decline. A long-short strategy between domestic and international markets remains a good approach. (Shouchuang Futures)