No More Waiting to Buy Gold, Now It’s Silver’s Turn

Long queues as people rush to buy silver

On September 3rd, after a long holiday break, domestic silver prices surged to new highs, with silver bar prices reaching an unprecedented 43 million VND per kg (Phu Quy brand). Silver bars supplied by Phu Quy Gold and Gems Group were priced at 1,567,000 VND per tael (buying price) and 1,615,000 VND per tael (selling price).

This record-high silver price, the highest since 2011, reflects the unprecedented rise in global silver prices, which reached 40.8 USD per ounce. Silver bars from Kim Phuc Loc (SBJ) of Sacombank were priced at 1,603,000 VND per bar per tael.

Contrary to the usual law of demand and supply, where an increase in price leads to a decrease in demand, the opposite has occurred in recent days. In Ho Chi Minh City, long queues of people were seen buying gold, and on the morning of September 3rd, despite the peak prices of gold and silver, large crowds gathered in Hanoi, not just to buy gold but also to purchase silver.

At the Phu Quy Gold Store on Tran Nhan Tong Street in Hanoi, while many queued to buy gold, the limited supply prompted some to turn to silver instead.

Ms. Lan, a resident of Dong Da, shared that she had been researching silver for some time and expected its price to rise. However, she was surprised by the sudden surge in prices over the past two days, which prompted her to invest in silver.

A silver investor for the past two years revealed that compared to silver prices a year ago, investors have enjoyed a 51% return. Those trading online (with valid silver trading documents) have seen profits of almost 60% in the past year. Predictions from the start of the year that silver prices would reach 40 USD per ounce by year-end have come true, spurring people to queue to buy silver on Hanoi’s “Gold Street” this morning.

Both global gold and silver prices soar to unprecedented levels

On Kitco.com, an article with a catchy headline highlighted analysts’ views: “Silver and Gold Prices Surge as Precious Metals Finally Break Out, Despite Stronger Dollar.”

The article stated: “Even as it faces a stronger US dollar, gold is setting new record highs, while silver trades at prices not seen since 2011. This week’s breakout could mark the beginning of a new wave of gains for the entire precious metals complex.”

“Investors are increasing their gold allocations, especially as the Fed’s rate cut looms, pushing prices higher,” said Joni Teves of Union Bank of Switzerland (UBS), one of the leading financial institutions in Switzerland, in a recent update. “Our base case is for gold to continue to set new record highs in the coming quarters,” the expert added.

Marc Chandler, CEO of Bannockburn Global Forex, noted that North American investors returned from the long holiday on Tuesday to a stronger US dollar across the board.

However, the dollar’s strength did not deter the rally in precious metals or other key commodities. Chandler pointed out: “Gold hit a record high (~3,508.75) in Asia-Pacific trading before falling to around 3,470 in early European trading. WTI futures for October rose about 0.5% last week and jumped nearly 3% today to nearly $66, the highest since August 4.”

“Silver has just been proposed for inclusion in the US Critical Minerals list, which has helped push prices above $40 per ounce,” Chandler told Kitco News. “Gold prices rose in Asia with no obvious trigger other than benefiting from silver’s momentum. Trend-following traders have clearly joined in. In the long term, silver has a solid fundamental foundation…”

According to Kitco.com, a filing from the Central Bank of Saudi Arabia last week showed investments of $30.5 million in iShares Silver Trust (NYSE: SLV) and nearly $10 million in Global X Silver Miners ETF (NYSE: SIL). While the kingdom’s investment in silver is small compared to its tech bets, an increasing number of analysts view it as a repositioning of silver’s investment value.

Gold prices are expected to test the 3,750 USD per ounce level by the end of 2025, with inherent volatility. Meanwhile, silver prices are projected to surpass 44 USD per ounce this year.