UBS SDIC Silver Fund Warns of Losses as China's Silver Premiums Soar

• China's only pure-play silver fund manager has issued multiple warnings to investors about the risk of "significant losses" should the metal's rally end.
• The UBS SDIC Silver Futures Fund LOF is trading at a record 12% premium over its underlying assets, indicating high speculative interest.
• Silver prices have more than doubled this year, hitting a record above $62/ounce after the US Federal Reserve's interest-rate cut.
• A scarcity of silver-related investment products in China contributes to the fund's popularity and the spike in its premium, increasing risk.

Why It Matters: Speculative silver fund premiums in China pose high risk to investors.