More ‘big guys’ jump into the silver bar market

On February 24, DOJI Jewelry Group launched its investment silver products for the first time, including 1 and 5 tael silver. These products are distributed by the company at transaction points in Hanoi and Ho Chi Minh City, and are expected to expand to Da Nang, Hai Phong and other major cities in the near future. Customers can buy silver directly from the company at the store system, or the eGold application.

Thus, DOJI is the 4th largest brand participating in the supply of domestic investment silver products, next to Phu Quy, Sacombank – SBJ and Ancarat.

DOJI representatives said that people’s need to buy physical silver to store assets is increasing rapidly, but the market lacks standardized products in terms of weight and quality. The participation of large enterprises with a wide distribution system and transparent listing is a factor that supports the market to develop more professionally.

The domestic investment silver product line has recently emerged in the context of investors looking for new profit channels, gold prices rising and making it difficult to access. However, the capacity of investors exceeds the production capacity of firms, so silver buyers currently have to wait 3-6 months to receive goods after making a deposit.

Experts note that silver is always highly volatile, rising and falling faster than the price of gold. This is not a suitable choice for people who are not professional at surfing or borrowing money to invest.

After the Lunar New Year, the domestic silver price is currently trading at 3.3-3.4 million VND per tael, equivalent to 88 – 90 million per kg. This level is 25% lower than the record set at the end of January.

Forecasting the silver price trend, JP Morgan Bank’s strategic research department believes that silver can establish a new price level higher than the previous period. According to the base scenario, the average silver price this year is forecast to be around 81 USD per ounce.

Meanwhile, Citigroup Bank (Citi) gave a more optimistic forecast in the short term. At the end of January, this bank estimated that the price of silver could rise to 150 USD per ounce in 3 months, thanks to technical factors and supply and demand developments in the precious metals market. Citi believes that silver still has room to increase in price as cash flows seek opportunities in defensive assets.