Precious metals whale strikes again: adds $940,000 worth of silver long positions with 5x leverage, total holdings surpass 5.6 million

On-Chain Whale 0x271 has once again increased its position in precious metals today. This “heavy long position in precious metals” player opened a new 10,000 SILVER (Silver Mapping Contract) 5x leveraged long position, totaling $940,000, with an unrealized profit of $26,000 so far. More notably, this is the second silver position opened within 15 days — the previous 20,000-unit long position was fully closed after a price correction, realizing a profit of $194,000. Currently, the total holdings in precious metals for this address have surpassed $5.64 million, with the gold position showing the most substantial unrealized gains.

High Leverage Play in Precious Metals Long Positions

Latest Position Details

The whale established the following silver long position on January 20:

• Position size: 10,000 SILVER
• USD value: approximately $940,000
• Entry price: $91.3
• Current unrealized profit: $26,000 (12% unrealized gain)
• Leverage: 5x

The timing of this new position is worth noting. Just 15 days after closing the previous position, the address quickly re-entered after a slight rebound in silver prices. This reflects a continued bullish outlook on precious metals and a flexible response to short-term volatility.

Complete Position Layout

The total related holdings in precious metals for this address now amount to $5.64 million, comprising:

The gold positions outperform silver significantly, which explains why the address has invested the most in gold. The two gold contracts together total $4.69 million, accounting for 83% of its total precious metals holdings.

Risk and Leverage Levels

The risk profile of this account warrants attention:

• Overall leverage: 5.2x
• Margin utilization: 80%
• Total funds: $1.435 million
• Monthly profit: $380,000

An 80% margin utilization indicates a high-risk state. Although the current unrealized profit is 68.15% and monthly gains are impressive, under 5x leverage, a 15-20% price correction could trigger a margin call. Notably, the TSLA mapping contract is already at a -31% loss, showing that not every trade is profitable.

On-Chain Sentiment in the Precious Metals Market

According to recent data, this whale is not acting alone. Multiple large addresses are paying attention to the precious metals sector. Notably, an address labeled “On-Chain Stock Investor” recently opened a short position in PAXG (Gold), with a position size of $14.1 million, making it the largest on-chain gold short. This creates an interesting contrast: one side heavily long gold, the other heavily short, reflecting divergent market views on precious metals prices.

Historical Comparison and Trading Logic

The closing operation 15 days ago by this address is quite instructive:

• Closing timing: after a short-term correction in silver
• Closure size: 20,000 SILVER, at an average price of $79.6
• Profit realized: $194,000
• Re-entry: 10,000 SILVER, at an average price of $91.3

Interestingly, the address re-entered only after silver rose from $79.6 to $91.3. This is not a bottom-fishing move but a chase after confirming an upward trend. Such an approach carries higher risk with 5x leverage, as the entry price is no longer at the optimal point.

Summary

This large whale in precious metals demonstrates an active yet high-risk trading style. A 68% return and $380,000 monthly profit are impressive, but an 80% margin utilization and 5.2x overall leverage leave little room for error. While the precious metals market is generally less volatile than cryptocurrencies, high leverage means that a 15-20% correction could pose serious threats. The gold position currently performs best with a 58% unrealized gain, while silver and Tesla contracts perform more modestly, highlighting the risk of chasing high returns. For such accounts, the key moving forward is whether they can take profits timely rather than continue to increase leverage.