Vietnam’s silver prices reached record heights on Monday morning. This surge was triggered by a worldwide increase in the value of the precious metal due to a supply shortage. The selling price at the jewelry chain Phu Quy increased by 6% from Sunday, standing at VND3.07 million (US$117) per tael (37.5 grams). The rate has experienced a substantial increase of 169% within the year.
On an international scale, the price of silver soared past the $80-per-ounce mark for the first time. However, it later saw a sharp decrease in a volatile trading environment on Monday.
Charu Chanana, the Chief Investment Strategist at the investment bank Saxo, said precious metals have experienced a boost this year due to a potent combination of factors. These include rate-cut tailwinds and hedging against geopolitical and fiscal uncertainties. She noted, “Adding supply concerns to the mix has resulted in a parabolic movement. However, the abrupt spike towards the end of the year, particularly in silver prices, also points towards the possibility of greater volatility. In the short-term, the risk is primarily technical and positioning-led.”
Significant debt loads in major economies such as the U.S., France, and Japan, combined with a lack of political determination to address these issues, have encouraged some investors to turn to silver and other alternative assets this year.
Moreover, the global production of silver from mines has been restricted due to decreasing ore grades and a lack of new project development.
What has driven the recent surge in silver prices in Vietnam?
The recent upsurge in Vietnam’s silver prices has been driven by a global increase in the value of the precious metal due to supply shortages.
What factors have boosted the value of precious metals this year?
The value of precious metals has surged due to a combination of rate-cut tailwinds and hedging against geopolitical and fiscal uncertainties.
Why have some investors been accumulating silver and other alternative assets this year?
Significant debt loads in major economies, coupled with a lack of political will to address these issues, have prompted some investors to accumulate silver and other alternative assets.
