Core Viewpoint - The global silver price has reached a historical high, driven by supply-demand dynamics and increased investment sentiment, while domestic inventories are at historically low levels [1][2]. Group 1: Price Movements - On December 1, the London silver spot price peaked at $57.862 per ounce, setting a new record [1]. - In the domestic market, the Shanghai Gold Exchange's AG (T+D) contract reached a high of 13,482 yuan per kilogram, closing at 13,261 yuan, with a rise of 5.51% [1]. - The main silver futures contract AG2602 hit a high of 13,520 yuan per kilogram, closing at 13,278 yuan, reflecting a 5.86% increase [1]. Group 2: Market Dynamics - The recent surge in silver prices is attributed to a tightening supply in the London spot market and a cumulative supply-demand gap over recent years [1]. - The latest silver futures inventory stands at 573 tons, with the Shanghai Gold Exchange's silver inventory at 715 tons, totaling 1,288 tons, which is historically low [1]. - The correlation coefficient between domestic and international silver markets has reached over 0.96, indicating unprecedented interlinkage [2]. Group 3: Volatility and Risk Management - Silver futures volatility has surged to 60, significantly exceeding historical averages, with multiple instances of daily price swings exceeding 5% [2]. - The current environment of high volatility necessitates effective position and capital management strategies for investors [4]. - The use of silver options strategies is recommended for risk hedging and enhancing returns, given the market's uncertainty and high volatility [3].