(Yicai) Dec. 2 -- As global silver prices climb to a new record high, analysts caution that rising inventories and manageable delivery risks mean investors should avoid chasing gains recklessly.

London spot silver closed at USD57.862 per ounce yesterday, setting a fresh record. In the Chinese market, the most-actively traded silver futures contract, AG2602, rose more than 5 percent to a record CNY13,787 (USD1,948) per kilogram today.

Silver began climbing in late September due to the tightening London spot market and recently entered its peak thanks to strong investor sentiment, said Liu Yuxuan, a precious metals researcher at Guotai Junan International.

As of now, silver inventory on the Shanghai Futures Exchange is 573 tons, and that on the Shanghai Gold Exchange is 715 tons, for a total of 1,288 tons, an historic low.

But inventories are rising, and delivery risks remain controllable, an analyst told Yicai, adding that the inventory for delivery on the SFE rose by 40 tons last week and by 14 tons yesterday alone.

“The silver inventory of the Shanghai Futures Exchange has been growing recently, and delivery risks for both domestic and overseas contracts in December are currently controllable,” Liu noted.

Given that precious metal prices are high and volatile, investors should manage risk carefully, remain vigilant against big price drops, and avoid blindly chasing high prices, Liu said.

Investors must bear in mind all factors, such as their own asset status, investment goals, and risk tolerance, control their positions, and avoid blindly following suit and investing without a clear plan and strategy, said Wang Jun, chief expert at Gelin Dahua Futures.

Editor: Futura Costaglione