As inflation fears and geopolitical risks loom large, silver has re-emerged as a compelling safe-haven asset—and Vietnam's domestic silver market is reflecting that momentum with historic gains. Over the past year,

Domestic Silver Prices Surge to All-Time Highs

As of June 18, 2024, silver prices at Phu Quy Gold, Silver & Gemstone Group soared to:

• VND 1,425,000 per tael (buying)

• VND 1,469,000 per tael (selling)

This represents a 41.4% year-over-year increase, positioning silver as one of the most profitable precious metal assets in the Vietnamese market. The surge is not only remarkable in magnitude but also in timing—coming at a moment when Vietnamese investors are increasingly diversifying beyond traditional safe-haven assets like gold.

The 1-kilogram silver bullion bar (999 fine) has also climbed in value, now priced at:

• VND 37,999,905 per bar (buying)

• VND 39,173,235 per bar (selling)

This price point was updated as of 8:59 AM, June 18, and marks one of the highest silver valuations ever recorded in the domestic market.

Experts note that silver's performance is now closely tracking gold, which has surged over 47% in the past year. This correlation suggests that investors are beginning to treat silver not just as an industrial metal, but as a legitimate store of value and inflation hedge.

Global Silver Markets Mirror Domestic Trends

The bullish sentiment isn’t confined to Vietnam. On global exchanges, silver recently touched USD 37 per ounce—a level not seen in nearly 14 years.

The international market saw two sharp price spikes within a single week, reflecting increasing demand from investors and institutions alike. The latest rally, occurring on the evening of June 17, has reignited attention from Vietnam-based investors who have historically favored gold.

Notably, even as Middle East tensions eased, typically reducing safe-haven demand, silver held its ground above major resistance levels, proving its resilience and growing appeal.

Global commodities platform Kitco.com also reported that while gold was under heavy profit-taking pressure, silver was receiving renewed interest from traders aiming to capitalize on its technical breakout.

Market Experts Weigh In

According to Guillermo Alcala, a senior financial market analyst at FXStreet, several geopolitical developments have helped reduce short-term fear in the markets, but have not yet derailed bullish silver momentum. He noted:

“Diplomatic efforts are accelerating, with several countries stepping in as mediators. Even former U.S. President Donald Trump has taken a proactive role in advocating peaceful solutions. This has somewhat stabilized market psychology. However, speculative buying in silver remains focused on the USD 37 resistance level.”

Alcala further emphasized that although risk-averse investors may momentarily shift away from silver, trading volume and bullish positions remain strong, particularly from hedge funds and commodity-focused institutions.

Kitco analysts echoed this sentiment, stating:

“Silver’s July futures contracts currently present a clearly favorable technical outlook for the bulls. The next major resistance level to watch is USD 40 per ounce—a psychological and technical threshold. A breakout beyond this point could trigger another significant leg upward.”

Why Vietnamese Investors Are Turning to Silver

Silver's affordability compared to gold makes it an attractive entry point for individual investors and younger demographics. As inflation remains a concern both globally and in Vietnam, silver is increasingly viewed as a hedge against currency devaluation and geopolitical instability.

Furthermore, silver's dual role—as both a precious metal and an industrial commodity—offers it unique upside potential. It plays a key role in sectors like electric vehicles, semiconductors, and solar energy, providing structural demand beyond financial speculation.

The current market environment, marked by volatility in global equities and uncertainty around U.S. Federal Reserve policy, creates fertile ground for precious metals—particularly silver—to shine.

Looking Ahead: Will Silver Breach USD 40?

With momentum building and global fundamentals supportive, analysts suggest silver may not stop at USD 37. If the metal breaks through the USD 40 per ounce resistance, as many anticipate, it could spark a new wave of buying from both institutional and retail players.

Domestically, Vietnamese silver prices are expected to continue their upward trajectory, especially if global prices remain elevated and the Vietnam dong experiences further pressure from external macroeconomic conditions.

The silver market in Vietnam is experiencing a renaissance. Prices have risen more than 41% in just one year, echoing global trends and signaling deeper investor trust in silver as both a financial hedge and strategic commodity. As demand increases and market dynamics evolve, silver may soon take its place alongside gold as a mainstream investment asset in Vietnam’s growing financial ecosystem.

(Cre: BBC)