A recent silver-related LOF fund has gained popularity. After relaxing the purchase restrictions, the first trading day triggered a fierce battle between bulls and bears—within less than half an hour of opening, the stock hit the limit up, with the bullish side winning impressively, and arbitrageurs on the short side also smiling happily. In the capital markets, it is indeed rare to see a trading scenario that makes both sides equally happy.

The only possible dissatisfaction might come from regulators. The exchange has already listed this fund as a key focus, strictly monitoring abnormal trading activities, and has also kept an eye on key accounts. However, these measures mainly target large investors hitting the limit up, while arbitrageurs are instead seen as a force to stabilize volatility.

How attractive are the returns? Based on a subscription standard of 500 yuan, the net profit on the same day exceeded 350 yuan, with a return rate of over 70%. Considering some traders operate with multiple household accounts, they can easily earn two to three thousand yuan in a single day. That’s the power of arbitrage.

The core mechanism lies in the high efficiency of "on-market subscription → on-market sale." Taking this fund as an example, it tracks domestic silver contracts; after on-market subscription, it can be sold in the secondary market on T+2, capturing the premium relative to the net asset value. If subscribing off-market, it requires transferring custody, which takes a total of five trading days to sell, making the process much less efficient.

Although the silver frenzy may not last long, this arbitrage logic appears every year. Last year, such opportunities yielded nearly 10,000 yuan in profit. Yesterday, the LOF market was unprecedented—20 limit-up boards, and market sentiment was completely euphoric.

But a word of caution: arbitrage can be played, but never try to fight with a premium in the secondary market—your face might get slapped at any moment.

From the perspective of the gold-silver ratio, recent silver price surges have pushed the ratio down to 62, a level not seen since July 2014, marking a ten-year low. In this context, a sharp correction in silver prices is not surprising. Once silver prices soften, the speculative enthusiasm for related funds will cool quickly, and the premium will be rapidly absorbed.

Regulators have also issued risk warnings, stating that the premium is unsustainable and that quota restrictions may be further relaxed in the future. However, it seems that participants’ enthusiasm is actually increasing.