1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - The rapid decline in precious metal prices in early February 2026 was due to the combined effects of short - term speculative leverage, sentiment reversal, and technical over - buying correction, which was a risk clearance for the previous overheating. As short - term sentiment calms, the market will refocus on long - term fundamentals. The supply - demand tightness of silver remains unchanged, and the current correction creates space for future development. However, short - term volatility risks cannot be ignored, and attention should also be paid to sentiment linkage and risk diffusion among related sectors [20] 3. Summary by Relevant Catalogs Short - term: Triggers for the Retracement - **Market sentiment shift triggering long - position stampede**: The "hawkish" remarks of the new Fed Chair nominee reversed the market's optimistic sentiment about monetary policy, increasing the expected holding cost of gold and reducing speculative long - position sentiment. High - leveraged positions were forced to liquidate due to margin shortages, forming a negative feedback loop and exacerbating price declines [4][5] - **Low - level repair demand for the gold - silver ratio**: The gold - silver ratio reached a 13 - year low of 48.28 on January 30, 2026, far below the long - term average. There was a strong technical need for ratio repair. When the market turned weak, silver faced more selling pressure and larger declines [7][9] - **Reverse fluctuations under physical delivery pressure**: Commercial dealers held a net short position of about 220 million ounces of silver, more than twice the exchange's registered silver inventory. To prevent delivery risks, CME raised the margin for precious metal futures, cooling speculation and giving short - sellers room to adjust positions [10] Medium - and Long - term: Fundamentals Remain Tight - **Rigid shortage in the silver market**: The global silver market was in short supply from 2021 to 2025, and the supply gap in 2025 was about 117.6 million ounces. Industrial demand, especially from the photovoltaic industry, grew rapidly, while supply growth was restricted by factors such as low ore grades and limited recycling, supporting long - term price increases [12][15] - **Inventory at a near - decade low**: Global silver inventory was at its lowest level in nearly a decade, reflecting supply shortages and weakening the market's buffer capacity. Once demand recovers, prices may rise rapidly, providing structural support for the medium - and long - term trend of silver [17]