Silver price fluctuations on December 29: Continuing to increase, many supporting factors

Domestic silver prices

As of 10:30 am on December 29, the price of 2024 Ancarat 999 silver bars (1 tael) at Ancarat Jewelry Company was listed at 3.036 - 3.111 million VND/tael (buying - selling); an increase of 54,000 VND/tael on the buying side and an increase of 56,000 VND/tael on the selling side compared to yesterday morning.

The price of 2025 Ancarat 999 (1kg) at Ancarat Jewelry Company is listed at 80.030 - 82.460 million VND/kg (buying - selling); an increase of 1.454 million VND/kg on the buying side and an increase of 1.494 million VND/kg on the selling side compared to yesterday morning.

The price of Kim Phuc Loc 999 silver bars (1 tael) of Saigon Thuong Tin Bank Jewelry Company Limited (Sacombank-SBJ) is listed at 3.021 - 3.099 million VND/tael (buying - selling); an increase of 195,000 VND/tael on the buying side and an increase of 201,000 VND/tael on the selling side compared to yesterday morning.

At the same time, the price of 999 silver bars (1 tael) at Phu Quy Jewelry Group was listed at 3.039 - 3.133 million VND/tael (buying - selling); an increase of 56,000 VND/tael on the buying side and an increase of 58,000 VND/tael on the selling side compared to yesterday morning.

The price of 999 silver bars (1kg) at Phu Quy Jewelry Group is listed at 81.039 - 83.546 million VND/kg (buying - selling); an increase of 1.493 million VND/kg on the buying side and an increase of 1.547 million VND/kg on the selling side compared to yesterday morning.

World silver prices

On the world market, as of 10:45 am on December 29 (Vietnam time), the world silver price was listed at 80.41 USD/ounce; up 1.83 USD compared to yesterday morning.

Causes and forecasts

According to precious metal analyst James Hyerczyk at FX Empire, the strong increase in silver occurred in the context of low trading volume after the Christmas holiday, but clearly reflects the increasingly important role of silver in the strategic supply chain.

He said that the strong price increase of silver did not come from familiar factors such as geopolitical tensions or expectations that the US Federal Reserve (Fed) would cut interest rates. The core reason lies in the supply shortage, along with the US officially classifying silver as an essential mineral group.

Although silver prices are at record highs, technical signals indicate that the market may face a short-term correction. However, James Hyerczyk noted that this signal does not mean that the long-term uptrend of silver has ended, but only shows that the market needs to "cool down" after a period of excessively rapid increase.

James Hyerczyk recommends that investors be cautious when trading in a context of low liquidity, avoid chasing buying when prices rise sharply or selling off when prices fall quickly.

With the current major fluctuations, long-term investors are assessed as having an advantage over short-term speculators, who need to be ready with capital divestment strategies to limit risks" - he said.

However, James Hyerczyk also noted that the shortage cannot last forever. When prices rise, new supply can be activated through expansion of exploitation or other alternative solutions, similar to what happened during the silver price peak in the late 1970s.

While short-term investors continue to closely monitor the developments of the Fed's policy and geopolitical situation, supply-demand factors are still seen as the main driving force for silver prices in the coming time" - James Hyerczyk said.