Silver LOF Valuation Controversy Tracking: Trading Halt Removed, Dispute Continues

The controversy over the valuation of the country’s first silver fund seems to be entering a more intense and complex phase of competition.

During trading on February 9, the Guotou Silver LOF opened its limit-down after five consecutive trading days of hitting the limit. On that day, the fund market opened lower and then rose, with trading volume exceeding 2.5 billion yuan by 2 p.m., making it one of the top two highest trading amounts in the fund’s history.

As the limit-down was lifted, more debates continued to simmer. Discussions about valuation adjustments, trading suspensions, and premium rates among various parties are ongoing.

Previously, in response to public opinion and investor concerns, Guotou Ruixin Fund issued a new announcement on the evening of February 6, announcing the formation of a special working group to actively explore solutions and support investors in resolving their claims through channels such as settlement, mediation, arbitration, and other legal means.

At the same time, the company emphasized in the announcement, “has the ability to safeguard investors’ legal rights and interests, and will adhere to fair pricing in fund operations, valuation, and other aspects, to fairly protect the legal rights and interests of all investors.” The latter is seen by outsiders as a “strong” stance, implying that there is no need to adjust the previous arrangements for the silver LOF.

Investors: From Queuing to Instant Transactions

The silver LOF opened its limit-down on February 8, resulting in massive trading volume, which should have been a relief to all parties.

In the previous five trading days, the fund had been hitting the limit-down every day, with only small amounts of trading. For example, on February 6, the secondary market price of Guotou Silver LOF (trading code 161226) was 3.099 yuan. On that day, about 740 million shares of silver fund units were queued for sale, with a total market value of over 2.2 billion yuan in pending orders.

From another perspective, as of the end of February 6, the fund’s latest net asset value was only 2.0792 yuan, nearly 40% lower than its all-time high from just over a week earlier. Based on the closing price that day, the product’s premium rate was still close to 50%.

Therefore, it is difficult for outsiders to predict exactly when the fund will open its limit-down and end the previous passive cycle of “drop-limit—valuation adjustment—drop-limit again.”

The trading on February 9 proved that market expectations for the silver LOF’s premium are still very high.

Volatility and Strong Investor Demands

The high level of attention on the silver LOF is related both to recent sharp fluctuations in global silver prices and to the series of measures taken by the fund company in response to price trends.

On one hand, starting in early September 2025, global silver prices broke away from the mild trend of the past decade and surged rapidly, with increasingly fierce upward momentum.

On the other hand, as silver prices rose and the silver LOF frequently imposed restrictions on subscriptions and trading suspensions, the secondary market trading prices of the silver LOF soared, and premiums widened significantly during trading.

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

After this sharp rise, the large fluctuations and phased declines in silver prices quickly intensified the accumulated conflicts.

On February 3 (actually the evening of February 2), Guotou Ruixin announced a “reasonable revaluation of the fund’s assets” for the silver LOF: adjusting the valuation of the fund’s holdings of domestic futures contracts based on international major silver futures market prices. This measure was “added” to the February 2 valuation of the silver LOF. That evening, the valuation of the silver LOF plummeted by more than 31%.

This triggered considerable investor controversy. According to Yicai, by February 6, complaints related to this incident on the Consumer Protection platform exceeded 17,600, involving over 17,000 investors. Major complaints included “failure to disclose valuation changes in advance” and “retroactive adjustments damaging fairness.”

Company’s Latest Response Announcement

In response to recent concerns over Guotou Ruixin’s valuation adjustments and related announcements, the company issued another statement after the market close on February 6, directly addressing the controversy.

Guotou Ruixin’s announcement stated that the company will uphold the principles of legal transparency, actively respond to investor demands, and strive to minimize the impact of valuation adjustments on investors, while protecting their legal rights. The company has established a working group to urgently study and develop relevant plans, supporting investors in resolving claims through settlement, mediation, arbitration, or other legal channels. Details will be announced separately.

Additionally, the company will actively support the effective implementation of settlement, mediation, and arbitration, and has the capacity to safeguard investors’ legal rights and interests. It will also adhere to fair pricing in fund operations and valuation processes to fairly protect the rights of all investors.

The next steps for the silver LOF remain highly watched.

Risk Warning and Disclaimer

Market risks exist; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Invest accordingly at your own risk.