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|The global silver price has kept growing|
Since the last days of 2020, a string of investment consultancies in Vietnam issued analysis showing that investors should be keener on silver instead of continuing to pour capital in gold.
InfoFinance stated that similar to gold, the domestic price of silver has been affected by the happenings in the world. Since late January, the price of silver in the global market has kept skyrocketing, so this may be a good time to invest.
“Furthermore, the domestic silver reserves, as well as metalworking services, are abundant and high in quality, so investors could easily buy themselves silver at a reasonable price,” InfoFinance noted.
HCT also noted that silver’s growth rate is historically higher than gold. “The rate is generally three or four times as large as for gold.”
As of February 11, the local price of silver was VND679,600-719,600 ($29.5-31.2, buy-sell) per tail, while the world price was slightly lower at $27.4-27.5.
Since late January, the price of silver has been skyrocketing. As of February 1, it reached a peak at $30,03 per ounce, the highest over eight years.
On the other hand, Bloomberg stated that the interest in the metal has turned quickly, after reaching an eight-year peak on January 3 at $28.52 per ounce, the global price dropped to around $26. However, this is still higher than in previous years. Bloomberg reported speculations that the current supportive posts on media may be part of a pump-and-dump scheme.
The newswire also quoted Bank of America analyst Michael Widmer as saying that there are some concerns behind the suddenness of the increase. “Lack of commercial buying ultimately means that the rally may come to an abrupt end once the recent strong investor buying fades.”