Tracking the Valuation Turmoil of Silver LOF: Limit Down is Lifted, Controversy Continues

The controversy surrounding the "valuation" of the first domestic silver fund seems to be entering a more intense and complex stage of contention.

On February 9th, during trading, the Guotou Silver LOF opened its trading limit after five consecutive trading days of a locked-down decline. On that day, the fund market opened lower and then rose, with the Guotou Silver LOF trading over 2.5 billion yuan, making it one of the top two trading amounts in the product's history.

As the trading limit was lifted, more debates remained unresolved. Discussions about valuation adjustments, suspensions, and premium rates continue to be a tug-of-war among various parties.

Previously, in response to the brewing public opinion and investor concerns, Guotou UBS Fund announced on the evening of February 6th the establishment of a special working group to actively research solutions and support investors in resolving their claims through channels such as reconciliation, mediation, and arbitration.

At the same time, the company emphasized in the announcement that it "has the ability" to safeguard investors' legal rights and will "adhere" to fair pricing in fund operations and valuation, fairly protecting the legal rights of all investors. The latter was interpreted by the outside world as expressing a "strong" stance, indicating that there was no need to adjust the previous arrangements for the Silver LOF.

Investors: From Queuing to Sell to Instant Transactions

The opening of the trading limit for the Silver LOF on February 8th, resulting in massive trading volume, should have relieved all parties.

In the previous five trading days, the fund had been locked down, with only a small amount of trading each day. For example, on February 6th, the secondary market price of Guotou Silver LOF (trading code 161226) was 3.099 yuan. By the close on February 6th, about 740 million shares of the silver fund were queued for sale, with a total order value exceeding 2.2 billion yuan.

However, from another perspective, as of the end of February 6th, the fund's latest net value was only 2.0792 yuan, down nearly 40% from its historical high more than a week ago. Observing the closing price that day, the product's premium rate was still close to 50%.

Therefore, for the outside world, it was actually very difficult to predict on which day it would lift the trading limit, ending the previous passive situation of locked-down trading—valuation adjustments—followed by continued locked-down trading.

The trading situation on February 9th proved that the market still had high expectations for the premium of the Silver LOF.

Volatile Fluctuations, Strong Investor Demands

The Silver LOF has attracted significant attention, both due to the recent dramatic fluctuations in global silver prices and the series of response measures taken by the fund company in light of price trends.

On one hand, starting from early September 2025, global silver prices will bid farewell to the moderate trends of the past decade and will rapidly advance, with increasingly fierce growth.

On the other hand, as silver prices rise and silver LOFs frequently implement measures such as limiting subscriptions and suspending trading, the trading prices of silver LOFs in the secondary market have surged sharply, with significant premiums during trading.

As of January 29, in the past month, silver LOF has risen to a maximum of 5.247 yuan, with a short-term increase of over 240% (see the above chart).

After the significant rise, the massive fluctuations and substantial pullbacks in silver have quickly intensified the previously accumulated contradictions.

On February 3 (actually on the evening of February 2), Guotou Ruijin announced a "reasonable revaluation of the fund assets" for silver LOF: adjusting the valuation of domestic futures contracts held by the fund based on the prices of silver futures in major international markets, with this measure "added" to the valuation of silver LOF as of February 2. That evening, the valuation of silver LOF plummeted by more than 31%.

This has sparked considerable controversy among investors. According to reports from Yicai, as of February 6, on the Consumer Protection platform alone, the number of complaints related to this event has exceeded 17,600, involving more than 17,000 investors, with main complaints including "failure to disclose valuation changes in advance" and "retrospective adjustments harming fairness."

Company's Latest Announcement "Response"

In response to the recent valuation adjustments and related announcements of Guotou Ruijin's silver LOF that have attracted attention, Guotou Ruijin Fund issued another announcement after the market closed on February 6, directly addressing the related controversies.

Guotou Ruijin's announcement stated that the company will adhere to the principle of legal disclosure, actively respond to investor demands, and strive to reduce the impact of related valuation adjustments on investors, protecting their legitimate rights and interests. The company has established a working group that is urgently researching and formulating relevant work plans to support investors in conveniently resolving their demands through channels or methods such as reconciliation, mediation, and arbitration, with specific circumstances to be announced separately.

In addition, the company will actively support the effective execution of reconciliation, mediation, and arbitration, and has the capability to safeguard investors' legitimate rights and interests, insisting on fair pricing in fund operations, valuations, and other aspects to fairly protect the legitimate rights and interests of all investors.

The next steps for silver LOF remain a point of interest.