Vietnamese investors turn to silver as gold prices soar

As of Monday, state-owned SJC gold bars were quoted at VND127.1 million (US$4,824) per tael, with a buying price of VND125.6 million ($4,767).

In contrast, silver sold for VND1.538 million ($58) per tael, with a buying price of VND1.503 million ($57)—making one tael of gold equivalent to 82.6 taels of silver.

This compares to a historical average ratio of around 65, suggesting silver is relatively undervalued.

Retail investor Xuan Nghi in Ho Chi Minh City said she purchased 100 taels of silver at VND1.415 million ($53.7) per tael in late June and sold them in mid-July at VND1.526 million ($58), realizing a 5.4-percent profit in three weeks.

“I didn’t expect silver to rise so fast. I’ve been waiting for prices to fall back to VND1.45 million [$55], but they’ve stayed above VND1.5 million,” she said.

Another investor, Duc Tuan, said he shifted from gold to silver in March when the former traded at VND1.218 ($46.2) million per tael.

“In less than six months, I’ve gained over 23 percent, far higher than any bank deposit,” he said, adding that he planned to accumulate more silver when prices dip.

Precious metals companies say silver is attracting a broader demographic beyond young investors, including senior customers.

Silver also has fewer restrictions than gold in Vietnam, with no documentation required to prove origin at the point of sale.

A representative from Sacombank-SBJ, a major precious metals dealer, said silver demand had surged recently, with daily sales reaching 2,000–3,000 taels.

“At peak times, supply couldn’t keep up and we had to accept pre-orders,” the person said.

“Hanoi’s demand is especially strong.”

Silver’s long-term price trend has also drawn investor attention.

According to Phu Quy Group, a major Vietnamese gold and silver dealer, the price of silver rose from VND1.115 million ($42) per tael on January 1 to over VND1.55 million ($59) in late July, marking a 39-percent increase.

In some cases, domestic prices jumped nearly five percent within a few days.

“Silver has strong upside potential in the second half of the year,” said Tran Duy Phuong, a financial expert.

“But it’s better suited for holding over 3–6 months rather than short-term speculation.”

While gold has also surged—SJC gold rose more than 39.6 percent from VND91 million ($3,452) per tael in early March—access has become difficult due to tight supply and rationed sales.

At peak times, buyers must queue, take queue numbers, and face purchase limits.

The price gap between buying and selling gold can reach VND2–3 million ($76–114) per tael, and domestic prices now exceed global levels by up to VND19.6 million ($743.6) for SJC gold and VND14 million ($531) for 9999 gold rings.

According to analysts, these factors have pushed investors toward silver, which remains relatively affordable and easier to trade.

Silver’s narrow buy-sell difference also enhances its liquidity.

Sacombank-SBJ said silver has not retested its all-time high of $50/oz set in 2011 and is currently hovering around $37/oz.

In contrast, gold has broken record highs over 30 times since 2011.

This disparity is further fueling investor interest.

“Silver offers both long-term investment value and industrial utility,” the company representative said, noting silver’s similar chemical properties to gold and its use in green technologies such as solar panels and electric vehicle batteries.

“In the future, silver will serve dual purposes—as an industrial metal and a store of value,” the person added.

“Even in traditionally gold-dominant markets like India, more people are diversifying into silver.”

ETF flows into silver surge

Despite not yet surpassing its 2011 peak, silver has hit its highest level in 13 years.

In June alone, silver prices rose over 10 percent, while silver-focused exchange-traded funds (ETFs) added more than 300 metric tons of silver—double the inflow from the preceding month.

Experts describe the momentum as part of a broader catch-up wave among silver, platinum, and gold.

Several Vietnamese companies have responded by marketing silver products as an alternative to gold, especially amid recent market volatility.

Popular silver investment products include 92.5-percent purity (silver 925) and 99.9-percent purity (silver 999), with the latter favored for its high purity and suitability for investment.