Nghe An's silver market 'takes the lead' amidst the gold price surge.

Along with the sharp rise in gold prices, silver prices also reached record highs last week. On the world market, the price of silver surpassed the $90/ounce mark for the first time, setting a new historical peak. Converted using the listed exchange rate, the highest price of silver on the world market was approximately 2.87 million VND/ounce, about 22% lower than the domestic price.

However, by the afternoon of January 15th, the market experienced a technical correction. Domestic silver prices uniformly decreased by approximately 100,000 VND/ounce, while world silver prices retreated to 87.98 USD/ounce after a period of rapid increase. Despite this slight decline, purchasing power did not cool down.

Conversely, silver continues to be a popular choice for many investors as an alternative asset class amidst the excessively high price of gold and the large bid-ask spread. Despite a 14% increase in silver prices in just one week and a 42% increase in one month, demand for silver remains high. Many are willing to buy at high prices, hoping for further price increases in the medium term.

Observations at numerous gold and silver shops in the province show a significant increase in customers inquiring about purchasing silver bars and ingots for investment purposes. Meanwhile, gold transactions tend to stagnate. Many believe that, although gold remains a traditional safe-haven asset, the current price makes buying it more risky, especially for those who do not intend to hold it long-term.

It is from this mindset that money flows have begun to shift. Mr. Nguyen Van Khanh, a long-time gold investor in Vinh Hung ward, said he has transferred some of his capital to silver after closely monitoring market developments. According to Mr. Khanh, the price of gold has risen too high and is difficult to buy, while silver has steadily increased since the beginning of the year, with lower initial investment but comparable profits. "I have invested in silver for several months now and have made a profit. With the same amount of capital, the return is even slightly better than gold," Mr. Khanh shared.

Following the same trend, Mr. Nguyen The Quan, a private investor in Nghe An, said he sold gold to take profits when prices rose sharply and transferred about 1 billion VND to invest in silver. At the time of purchase, the price of silver was around 52 million VND/kg. He bought 20 kg but had to wait more than 4 weeks for enough due to limited supply. If he sells it now, the profit would be nearly 40 million VND/kg. According to Mr. Quan, in the context of volatile gold prices and high buy-sell spreads, silver is more suitable for medium-term accumulation.

Not only experienced investors, but also those new to precious metals are drawn to silver. Ms. Tran Huong Giang, residing in Thanh Vinh ward, said her decision to buy silver stemmed from concerns about leaving money idle in a volatile market. “Savings accounts don’t offer high interest rates, branded gold is hard to find, and private gold prices are unstable, while silver has a reasonable price, doesn’t put financial pressure on you, and is still a long-term asset,” Ms. Giang said.

According to surveys, a common characteristic among many current silver buyers is that they don't prioritize short-term trading but rather view it as a medium-term accumulation channel. The advantage of silver is its low capital requirement, easy accessibility, and suitability for those with savings ranging from a few million to a few tens of millions of dong, a group with limited capital when participating in the gold market.

From a business perspective, Ms. Doan Le Van, owner of Nhat Khang gold and silver shop (Truong Vinh ward), said that since the end of last year, the number of customers inquiring about and ordering silver has increased sharply. Phu Quy silver bars and Ancarat 1,000g silver are popular due to their high purity, ease of storage, and relatively good liquidity. Currently, we are an authorized dealer of the Phu Quy silver brand with a wide variety of designs to serve customer needs.

Not only in the central area, but the silver market in local areas is also more vibrant. At Mai Linh gold shop in Dai Dong commune, the number of customers buying silver has increased by about 20%, although demand is still mainly focused on silver jewelry for daily use and as gifts.

According to experts, the recent sharp rise in silver prices is not a temporary phenomenon but is influenced by several factors such as geopolitical instability, inflation, and increased demand from emerging industries, especially renewable energy and artificial intelligence. Citi Bank experts predict that silver prices could reach $100 per ounce due to increased industrial demand and investment inflows. According to Companies Market Cap, silver currently has a total market capitalization of nearly $5 trillion, making it the second most valuable asset globally, after gold.

However, analysts also warn that the rapid increase in silver prices in a short period of time carries the risk of a sharp correction. People should avoid following the crowd, consider their financial capabilities, and allocate their investment portfolios wisely. In addition, to minimize the risk of counterfeit or adulterated silver, buyers should choose reputable establishments with established brands and clear quality certifications.

Amidst excessively high gold prices and large buy-sell spreads, silver is emerging as a new investment channel. Although the market has experienced short-term corrections, for many investors in Nghe An, silver remains a worthwhile option for preserving capital and diversifying portfolios during this volatile market period.