The Chinese trading company Zhongcai Futures earned over $500 million betting against silver after the crash in prices of this precious metal, the Financial Times reports.
According to calculations by the newspaper based on data from the Shanghai Futures Exchange, Zhongcai Futures recorded a profit of more than ¥3.6 billion ($519 million) on the morning of February 6 after increasing short positions in silver at the end of January.
As of February 2, Zhongcai Futures had formed a bearish position in silver futures on the Shanghai Futures Exchange (SHFE), equivalent to approximately 484 tons of metal.
At prices on February 4 (silver closed that day at $84.395 per ounce), the value of the position exceeded $1.5 billion, the Financial Times specified.
The increase in Zhongcai Futures' profits reflects the recent rise in volatility in the precious metals market, especially in China, where regulators are trying to curb speculative activities, the publication writes.
Moreover, it indicates that trading in gold and silver is gradually shifting towards Asia, where the frenzied growth of retail investments in these metals has been the main reason for the price surge in January.
In January 2026, silver prices soared by more than 72%, reaching a historic high of $121.785 per ounce on January 29.
However, after reaching record highs, the growth in the precious metals market was followed by a crash. On January 30, silver experienced its largest daily drop in history, while gold saw its largest drop since 2013. On that day, silver futures fell by 31%. On February 6, they plummeted another 16.71%, reaching a low of $63.9 per ounce.
Overall, from the peak on January 29, the decline in the silver market reached 47.5%.
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