Silver: The Rising Star Amidst Soaring Gold Prices?

As gold prices continue to hit record highs, many individual investors are turning their attention to silver as a viable alternative. With its lower entry cost and dual role as both a precious and industrial metal, silver is gaining popularity as a smart addition to diversified portfolios.

Why Is Silver Gaining Momentum?

Throughout 2024, gold reached historic peaks driven by persistent inflation, geopolitical instability, and low interest rates. However, as gold becomes increasingly expensive, silver stands out thanks to its affordability and growth potential. According to data from 2021 to 2024, silver prices have risen by an average of 14% annually, surpassing gold's 9%. Notably, in 2024 alone, silver surged by 31%, outperforming gold’s 19.5% gain.

Key Advantages of Investing in Silver

Nguyen Khanh Long, a seasoned silver market analyst, highlights three core benefits of investing in silver:

Low Entry Cost: One tael (approx. 1.2 ounces) of silver bullion currently costs around 1.5 million VND (≈ $60), nearly 80 times cheaper than the same weight of gold. This makes silver far more accessible to retail investors.

High Growth Potential: While physical silver investment is still new in Vietnam, the global demand—especially from green industries like solar energy and EV batteries—suggests substantial room for growth.

Dual Function: Unlike gold, which is primarily a store of value, over 50% of global silver production serves industrial applications, giving silver a unique growth edge during economic recovery cycles.

How to Invest in Silver Effectively

For beginners, physical silver—such as 999 or 9999 bullion bars and coins from reputable brands like Phu Quy or Bac Mat Trang—is recommended. These are considered low-risk, tangible investments that can be stored securely and sold when needed.

Experts suggest allocating 5–15% of your portfolio to silver, depending on market conditions and individual risk tolerance. Mike Maloney, author of Guide to Investing in Gold and Silver, advocates for precious metals to comprise at least 20% of a portfolio, with silver making up 40–60% of that share.

Instead of trying to time the market, investors are encouraged to follow a disciplined approach—purchasing silver regularly on a weekly or monthly basis and selling only when reallocating funds or making planned expenditures.

Common Mistakes to Avoid

One frequent mistake is buying silver products with less than 999 purity, such as 925-grade jewelry, which can lead to significant value loss upon resale. Another is reacting emotionally to short-term price drops, which can result in missed long-term gains.

For instance, in April 2025, silver fell over 10% in just one week following President Trump’s tariff announcements. But prices rebounded strongly, reaching a 13-year high of $37.11/oz by mid-June—an increase of 29% since the start of the year.

Long-Term Outlook: Can Silver Outshine Gold?

Many international analysts remain bullish on silver. Robert Kiyosaki, author of Rich Dad Poor Dad, forecasted silver reaching $70–200/oz, while Mike Maloney believes it could exceed $100/oz if the U.S. dollar weakens further.

According to German precious metals firm Heraeus, global silver ETFs added over 18.2 million ounces in the first half of June 2025, bringing total holdings to 759 million ounces—the highest level in nearly three years. This trend reflects growing institutional interest in silver ahead of potential Fed rate cuts.

In conclusion, silver isn’t just a cheaper alternative to gold—it’s an asset with solid long-term growth prospects. With the right strategy, understanding, and discipline, silver can be a wise choice for investors looking to hedge against inflation, geopolitical tensions, and global financial uncertainties.