Silver Investment Increases: Why?

With the price of gold increasing, many investors are shifting to silver because of its cheaper price, only 1/82 of the price of gold and very small trading range. Can silver become an alternative investment channel to gold?

With gold prices sky-high, many people are switching to investing in silver because the market price is not high yet, making buying and selling quite easy - Photo: BT

On August 25, the price of SJC gold bars closed at 127.1 million VND/tael, the buying price was 125.6 million VND/tael.

Meanwhile, the selling price of silver is 1.538 million VND/tael, buying price is 1.503 million VND/tael. Thus, 1 tael of gold is currently equivalent to 82.6 taels of silver, much higher than the historical average of 65, showing that silver is relatively undervalued compared to gold.

Is buying silver more profitable than gold?

Ms. Xuan Nghi (HCMC) said that at the end of June she bought 100 taels of silver at the price of 1.415 million VND/tael; just three weeks later, on July 14, the silver price skyrocketed to 1.526 million VND/tael, and the buying price also skyrocketed to 1.491 million VND/tael.

She took the opportunity to sell to make a profit of 7.6 million VND, equivalent to a profit margin of nearly 5.4%. "I also did not expect the silver price to increase so quickly in such a short time. I was still waiting for the price to drop back to the 1.45 million VND/tael price range to buy again, but after waiting for a long time, the silver price still did not drop to the desired price range and only hovered around the 1.5 million VND/tael threshold," said Ms. Nghi.

Mr. Duc Tuan (HCMC) also said that he switched to investing in silver when he saw the price of gold continuously climbing. In early March 2025, Mr. Tuan bought silver when this metal was at 1.218 million VND/tael and he is still holding it.

"So after less than half a year, I have made a profit of more than 23%, many times more than saving in the bank. Therefore, I will continue to follow the principle of saving small amounts to make a big amount, buying more when I have money to accumulate at times when silver prices adjust," said Mr. Tuan.

According to many gold, silver and gemstone businesses, silver investment buyers are not only in the young customer segment but have shifted as some older people have begun to take an interest in this precious metal. Buying and selling silver is also easier than gold as there is no need for documents proving its origin.

Speaking to Tuoi Tre, a leader of Sacombank - SBJ said that the demand for silver investment has recently increased quite rapidly, the company sells 2,000 - 3,000 taels of silver per day. "There are times when demand increases so much that it leads to "out of stock", the company has to close in advance and schedule delivery later. In particular, the demand in the Hanoi market is very large", this person said.

If we look at the long term, the increase in silver prices is even more "terrifying". On January 1, 2025, the selling price of silver bars listed at Phu Quy Gold and Gemstone Group was VND1,115 million/tael, while at the end of July, the silver price had exceeded VND1,55 million/tael, equivalent to an increase of up to 39%. At one point in July, the domestic silver selling price increased by nearly 5% in just a few days.

"The prospect of silver price increase in the final period of the year is very large. However, silver investment is suitable for long-term storage of 3-6 months, instead of surfing," said expert Tran Duy Phuong.

The high price of gold has caused investors to switch to silver because it is cheaper. Currently, the price of silver is only 1/82 of the price of gold - Photo: ANH HONG

Why is silver suddenly getting attention?

Compared to the price of 91 million VND/tael in early March 2025, up to now, the price of SJC gold bars has increased by more than 39.6%, the price of 9999 gold rings has increased by 35%.

Domestic gold prices are increasing rapidly, but buying gold is not easy because the supply of gold bars and gold rings is sometimes scarce. To buy, you have to queue, get a number, and the quantity is limited.

At times of strong fluctuations, the difference between buying and selling prices of gold is very large, up to 2-3 million VND/tael, not to mention the price of SJC gold bars is 19.6 million VND/tael higher than the world gold price, the difference for 9999 gold rings is 14 million VND/tael, so buying gold at this time will face many risks.

According to experts, these are the reasons why many investors are shifting their money to buying silver, believing that this metal is undervalued relative to gold.

According to statistics, the world's silver production is only 1/3 left, with the possibility of becoming increasingly scarce like gold. This is also one of the factors causing investors to turn to silver.

Expert Tran Duy Phuong also said that the gold price has increased too quickly and the difference is large compared to the world gold price, so buying silver at this time is the optimal choice.

According to the general director of a gold company, one tael of gold is only equivalent to nearly 83 taels of silver in market value, allowing people to participate in buying and storing assets. The silver buying and selling margin is very small and competitive, also creating favorable conditions for liquidity.

A leader of Sacombank - SBJ said that after reaching a peak of 50 USD/ounce in 2011, silver prices have not broken the peak yet and are hovering around 37 USD/ounce. Meanwhile, from 2011 to now, world gold prices have broken the peak more than 30 times.

This is also the factor that makes investors put their hopes on silver, especially when the price of an ounce of gold is too high compared to the income of the majority of people.

According to this person, the physical and chemical properties of silver are similar to those of gold; in addition to the need for storage, this metal is applied and used in large-scale industrial production, especially in the manufacture of green energy conversion such as making solar batteries, car batteries, etc.

"In the future, silver will serve both industrial production and as a new asset accumulation option when gold prices increase and supply becomes increasingly limited. Even in a gold-loving country like India, many people also have the habit of accumulating silver alongside gold," he said.

ETFs pour money into silver

Silver prices have not yet hit their all-time high of $50 an ounce, but they have already hit a 13-year high. In June alone, silver prices rose more than 10%. Inflows into silver ETFs have skyrocketed, with more than 300 tonnes of silver purchased in June alone—double the previous month’s 150 tonnes.

According to experts, this is a "catch-up wave" between silver, platinum and gold. Grasping the market demand, some gold companies have started to join in. Some companies are promoting silver products as an alternative to gold, especially when the gold market is volatile.

Popular silver products have silver content ranging from 92.5% (925 silver) to 99.9% (999 silver). In particular, 999 silver is considered the optimal choice for investment purposes due to its high purity.

PINK LIGHT

Source: https://tuoitre.vn/dau-tu-bac-tang-manh-vi-sao-20250826074454735.htm