Silver has recently experienced a fierce rally, with an increase of nearly 8%, and even the Chicago Mercantile Exchange's repeated margin hikes haven't been able to suppress it. Is there any logic behind this?

From the supply side, 70% of silver production actually comes from the tailings refining of metals like copper, zinc, and lead. In theory, as long as the price signals are in place, production lines can respond quickly—after all, the technical difficulty isn't high, and the main cost is electricity. But there's a key variable here: China, as a major global producer, is currently tightening controls on silver exports. The inventory pressure on the US side is becoming quite tight.

When supply tightens while demand remains hot, prices naturally surge. This rally in silver is less about speculative enthusiasm and more about the actual supply landscape at play.