On Monday morning, silver prices in Vietnam hit an all-time high as global demand for safe-haven assets surged. The price of Phu Quy silver jumped 6% to VND4.24 million (US$162) per tael, equivalent to VND112.8 million per kilogram.
Since the start of the year, the cost of this white metal in Vietnam has seen an increase of 35%. This rise parallels a global trend, where the price of spot silver increased by 4.57% to $107.65 per ounce. This sharp increase comes after it hit an unprecedented high of $108.60 per ounce. The escalation can be attributed to investors seeking refuge in safe-haven assets due to escalating geopolitical uncertainties.
On Friday, silver prices exceeded the $100 mark for the first time ever. This rise builds on last year’s significant increase of 147%. The astounding growth is a result of an influx of retail investors and momentum-driven purchases, exacerbating a longstanding period of scarcity in the physical markets for silver.
What is a safe-haven asset?
A safe-haven asset is a type of investment that is expected to hold or increase its value during market turbulence. These assets are typically sought after by investors to limit their exposure to losses during market downturns.
What caused the surge in silver prices in Vietnam?
The surge in silver prices in Vietnam can be attributed to an increase in global demand for safe-haven assets, as well as geopolitical uncertainties.
What factors contributed to silver prices crossing the $100 mark?
The surge beyond the $100 mark was driven by an influx of retail investors and momentum-driven purchases, which intensified an already present scarcity in the physical markets for silver.
