With shifting cash flow, silver is becoming a new investment option.
Silver prices are undergoing a significant correction after a strong rally amid tensions in the Middle East and changes in expectations regarding the US Federal Reserve's interest rate policy. Downward pressure is increasing as investors closely monitor geopolitical developments and global monetary policy trends.
However, according to Mr. Nguyen Khanh Long, Head of Precious Metals Market Analysis Department, Phu Quy Gold and Silver Group, the current developments do not reflect a widespread selling wave, but rather show a change in how different groups of investors participate in the market.
Speaking to the Industry and Trade Newspaper, Mr. Long said: "In reality, each market adjustment creates different reactions depending on the investment goals of each customer group."
Expert Nguyen Khanh Long - Head of the Precious Metals Market Analysis Department of Phu Quy Gold and Silver Group. Photo: Provided by the interviewee.
According to this expert, for investors aiming for long-term accumulation, the drop in gold and silver prices to lower levels is seen as an opportunity to increase their holdings, as prices become more accessible than in the previous period. "Especially, many people still maintain the habit of buying and accumulating periodically instead of chasing short-term market fluctuations," Mr. Long commented.
Meanwhile, short-term investors tend to take advantage of sharp dips to seek trading opportunities when prices fluctuate sharply. This indicates that there is no widespread sell-off in the market; capital flows are still maintained, only investment strategies have shifted.
"It can be seen that, with assets that preserve value such as gold and silver, most Vietnamese investors still prioritize accumulating and holding them in the medium to long term. This is considered a solution to protect assets against macroeconomic fluctuations, inflation, and instability in the global financial market," Mr. Long said.
Over the past two years, silver has increasingly attracted the attention of investors. However, silver is unlikely to replace gold because these two precious metals have existed side-by-side throughout history and served different market needs. “The growing market for silver bullion in Vietnam provides investors with another option besides gold. In the context of gold prices continuously reaching new highs and the cost of owning gold rising, silver becomes a more suitable investment channel for those with moderate capital,” Mr. Long analyzed.
In particular, younger customers or those just starting to accumulate assets are increasingly choosing silver because the initial capital investment is not too high, yet it has the potential to preserve value in the long term.
"I believe that in the near future, the gold and silver markets in Vietnam will develop in a direction similar to many countries around the world , meaning the two markets will run parallel, complement each other, and meet the needs of different groups of investors instead of competing to replace each other," Mr. Long assessed.
Supply shortages provide support for long-term prospects.
According to Mr. Nguyen Khanh Long, the silver market currently attracts both long-term asset-holding investors and short-term investors. This is a common characteristic of asset markets as their size and level of interest increase.
"In reality, just like gold, real estate, or stocks, the silver market always has two groups of investors coexisting: long-term accumulation and short-term investment. This is a common characteristic of any asset market as its size and level of interest increase," Mr. Long said.
In this context, asset-accumulating investors typically aim to preserve the value of their assets in the long term, tending to accumulate assets periodically or increase their holdings when prices correct to what they consider reasonable levels. Short-term investors, on the other hand, take advantage of strong price fluctuations in silver to seek profit opportunities. "Silver has a larger price volatility than gold, making it more attractive to this group of investors, especially during periods when the market experiences significant events such as changes in monetary policy, geopolitical shifts, or movements in the US dollar," Mr. Long analyzed.
Assessing the outlook for silver prices in the second half of 2026, this expert believes that the current correction is a normal development after a period of strong growth in late 2025 and the first few months of 2026.
"After a period of very strong increases at the end of 2025 and the first few months of 2026, the adjustment of silver prices to form a more balanced price level is a completely normal and necessary development for the market," Mr. Long commented.
According to Mr. Long, in the short term, the price of silver has fallen significantly from its peak, but compared to the same period last year, the increase is still over 66%, showing that it remains one of the assets with outstanding returns.
In the long term, the silver market outlook is considered positive due to supply and demand factors. According to data from the Silver Institute, the market is entering its sixth consecutive year of supply shortage. The total accumulated deficit is expected to exceed 23.7 thousand tons, equivalent to more than 90% of global silver mining output for one year.
In particular, silver is playing an increasingly important role in many high-tech industries, especially in the production of solar cells and electronic devices. Meanwhile, a significant portion of the silver used in these products is difficult to recover or recycle, putting continued pressure on the actual supply. “Demand for silver for investment and storage purposes is still projected to increase by about 18% this year. This will be a crucial factor laying the foundation for a sustainable upward trend in silver prices in the medium and long term, although the market may still experience short-term corrections due to the impact of monetary policy or global economic fluctuations,” Mr. Long shared.
Despite being affected by the Fed's interest rate policy, the US dollar, and geopolitical factors in the short term, the silver market is still expected to maintain its attractiveness thanks to favorable supply and demand conditions, along with continued growth in investment and industrial consumption.
Source: https://congthuong.vn/bac-dang-la-lua-chon-toi-uu-cho-tich-san-462890.html
