Silver prices plummet, should investors spend money?

Domestic silver prices at many brands simultaneously adjusted sharply down in the context of volatile world precious metals markets.

As of 6:00 AM on June 12, the price of silver bars 2024 Ancarat 999 (1 tael) at Ancarat Gem Company was listed at the threshold of 2.405 - 2.467 million VND/tael, down 13,000 VND/tael in both buying and selling directions.

The price of silver ingots 2025 Ancarat 999 (1kg) at Ancarat Gem Company is listed at the threshold of 63.326 - 65.286 million VND/kg, down 33.8 million VND/kg on the buying side and down 348,000 VND/kg on the selling side.

The price of 999 silver (1 tael) of DOJI Gold and Gems Group Joint Stock Company is listed at the threshold of 2.415 - 2.495 million VND/tael, down 4,000 VND/tael in both buying and selling directions.

Talking to reporters, Mr. Nguyen Hoang Viet - Director of Ancarat Xa Dan Jewelry Company (Hanoi) - said that the current decline in silver prices mainly stems from international macroeconomic factors.

According to Mr. Viet, the USD is strengthening again and the expectation that interest rates in the US will remain at a higher level longer than expected are the main reasons putting pressure on the group of precious metals.

When interest rates increase, cash flow tends to shift to fixed profitable assets instead of gold or silver - assets that do not generate cash flow. In addition, profit-taking sentiment after the previous hot period also contributes to deeper price adjustments in the short term" - Mr. Viet analyzed.

Assessing investment opportunities in the current price range, the expert said that strong corrections often open up accumulation opportunities for investors with medium and long-term vision.

However, he recommended that investors should not pour all their capital to "bottom-fish" at a specific price level.

Investors should allocate capital in parts, prioritizing the strategy of buying at average prices. At the same time, they need to closely monitor macroeconomic factors such as interest rates, inflation and exchange rate fluctuations to make appropriate decisions" - Mr. Viet said.

Regarding silver, Mr. Viet noted that this is a type of asset with a specific nature as it is both a precious metal and plays an important role in industrial production activities. Therefore, silver prices often have a larger fluctuation range than gold.

Due to the characteristic of being both an investment factor and associated with industrial demand, silver often fluctuates more strongly than gold. Investors need to build a tight risk management strategy and avoid the psychology of chasing or investing based on emotions" - Mr. Viet advised.