Silver prices hit historic peak in Vietnam

Jewelry chain Phu Quy’s selling price went up 6% from Sunday to VND3.07 million (US$117) per tael of 37.5 grams. The rate has risen 169% so far this year.

Silver prices in Vietnam. Screenshot from Phu Quy's website

Globally silver climbed above the $80-per-ounce-mark for the first time before sliding sharply lower in volatile trading on Monday, Reuters reported.

Charu Chanana, chief investment strategist at investment bank Saxo, said precious metals have been lifted this year by a powerful mix of rate-cut tailwinds and hedging against geopolitical and fiscal uncertainty.

"Add supply worries and the move has turned parabolic. But the late-year, near-vertical surge, especially in silver, also raises the risk of higher volatility. Near-term, the risk is technical and positioning-led."

Heavy debt burdens in major economies including the U.S., France and Japan, coupled with limited political resolve to address them, have also prompted some investors to accumulate silver and other alternative assets this year, The Business Times reported.

At the same time, global silver mine production has been constrained by falling ore grades and a lack of new project development.