The precious metals market remains unstable. On February 5, London silver prices fell another 14% during early trading, having retreated nearly 40% from their peak a week earlier and potentially setting new lows.

Amid sharp fluctuations in gold and silver prices, some companies are choosing to sell at high levels to lock in profits, while others are buying the dip—even using leverage to enter the market.

A-share firm Aoke Shares and Hong Kong-listed Emperor Entertainment Hotel recently sold their respective stockpiles of silver and decorative gold bricks, with the latter expected to record an investment gain of HK$90.2 million.

"Given current market conditions and the high market price of the precious metal, the directors believe the sale presents a good opportunity for the Group to realize and unlock the value of the precious metal, while also saving future security and insurance costs related to it," Emperor Entertainment Hotel stated in an announcement.

The equity market tells an even more dramatic story. Examples include the board secretary of Xingye Yinsxi boldly buying HK$2 million worth of shares during a third consecutive跌停板, as well as margin traders snapping up HK$1.8 billion worth of Hunan Gold shares over two days as gold prices retreated.

The fierce battle between greed and fear, along with divergent long and short positions taken by listed companies and individual investors, paints a vivid picture of capital movement amid recent precious metals volatility.

Selling High or Buying the Dip?

The sharp swings in precious metals began on January 29. That day, Aoke Shares held a board meeting approving a plan for its subsidiary to sell up to 10,000 kilograms of silver from inventory, depending on market conditions.

The silver was purchased by its Jiangsu subsidiary in 2020 and is currently used as a catalyst. After the sale, Aoke will lease an equivalent amount of silver for production.

During the earlier rally, Aoke had already sold 4,987 kilograms of silver through a futures exchange, significantly helping the company return to profitability.

According to its earnings forecast, Aoke expects to turn a profit in 2025, with net income estimated between RMB 2 million and RMB 12 million. The sale of silver assets and some performance compensation contributed approximately RMB 52 million in earnings.

Emperor Entertainment Hotel, meanwhile, confirmed the sale of its "gold floor bricks" to monetize the asset.

Over the past two decades, to create a luxurious atmosphere in its Macau casino and enhance its brand image, the hotel laid multiple gold bricks along the main passageway of its lobby, attracting large crowds.

"Since terminating its gaming operations, the Group has actively planned other entertainment and leisure facilities to enhance the overall service experience and broaden its revenue base," the company stated. With the area scheduled for renovation and redesign, the precious metal, originally part of the hotel’s interior design, no longer aligns with its future theme.

On February 4, Emperor Entertainment Hotel sold the gold to a precious metals company under Heraeus for HK$99.7 million. The company expects to recognize a gain of HK$90.2 million from the transaction.

Unlike these firms cashing out, the more liquid equity market appears unfazed by short-term precious metals turbulence.

Sun Kai, board secretary of Xingye Yinsxi—owner of Asia’s largest silver mine—gained attention for his bold move.

After silver prices fell, Xingye Yinsxi, which had risen significantly earlier, hit跌停板 on January 30 and February 2. On February 3, its share price again fell to the跌停板 limit.

Perhaps sensing a short-term bottom in London silver, Sun quickly stepped in to buy. After-market filings showed he purchased HK$2 million worth of shares at the跌停板 price of HK$49.83 on February 3—equivalent to his total compensation over the past three years.

Hunan Gold, whose shares have shown relative resilience and fallen less than sector peers, recently saw heavy buying by margin traders.

Wind data shows that between January 12 and 29, while London gold rose from US$4,500 to US$5,598 per ounce, margin traders barely bought Hunan Gold, with net selling on most trading days.

However, after gold prices retreated from highs, margin traders aggressively bought Hunan Gold on January 30 and February 20, with net purchases reaching HK$956 million and HK$814 million, respectively.

In just two days, Hunan Gold’s margin balance surged from HK$1.2 billion to HK$2.97 billion, highlighting the scale of dip-buying.

Volatility Remains Elevated

After about a week of rapid declines, risks in precious metals and related equities have been partially released.

From their January 29 peaks, spot London gold saw a maximum pullback of 21.37%, while spot London silver fell more than 41%. Stocks such as Sichuan Gold and Hunan Silver also experienced multiple跌停板s, with declines generally exceeding 30% over the period.

Historically, these pullbacks are significant. Adjustments to margin requirements and trading limits by exchanges also suggest markets are gradually stabilizing.

For example, the Shanghai Gold Exchange, closely linked to China’s domestic precious metals market, announced on February 3 that margin requirements for Ag (T+D) contracts would be lowered from 26% to 23%, and daily price limits would be narrowed from 25% to 22%.

Typically, exchanges widen limits when volatility rises and narrow them as risks ease, until normal conditions return.

However, this does not mean high volatility has completely subsided. Precious metals and related markets remain in a state of elevated fluctuation.

Taking London gold as an example, Wind data shows a trading range amplitude of 14.12% over just four trading days from February 1—lower than the 29.17% seen in January but higher than the 13.79%, 7.43%, and 8.15% recorded in October, November, and December 2025, respectively.

London silver also remains highly volatile. While its recent amplitude is lower than in January and December 2025, it is higher than in October and November 2025, with daily swings exceeding 10% over the past three sessions.

It is worth noting that the sell-off began with sharp declines in gold and silver before spreading to industrial metals and petrochemicals—a systemic downturn.

Commodities with strong financial attributes and international pricing have been particularly affected. Any shift in macro conditions or monetary policy could trigger renewed volatility in gold, silver, copper, and other metals.

In equities, the reduction in "sentiment premium" has led to a return to fundamental valuation.

For instance, Silver有色, which saw an eight-session streak of limit-up gains in late January, fell by跌停板 for three consecutive days after gold and silver turned lower. After a brief respite on February 4, its shares again hit跌停板 on February 5.

Against this backdrop, whipsaw conditions may repeatedly trap both bulls and bears, underscoring the need for continued caution in precious metals markets.