Long lines of customers gather from early morning outside a gold shop on Trần Nhân Tông Street in Hà Nội, waiting to buy gold. — VNA/VNS Photo

Compiled by Vũ Hoa

Việt Nam’s newly issued Decree 340e/2025/NĐ-CP on gold trading management is being hailed by experts as a necessary step to restore order in the precious metals market, even as misinformation about the law has triggered public unease and stirred an unexpected surge in silver demand.

Over the past week, domestic gold prices experienced dramatic volatility. SJC gold bars briefly climbed to historic highs near VNĐ190–191 million (US$7,260–$7,340) per tael before retreating sharply, ending the week around VNĐ169–172 million ($6,480–$6,620) per tael amid strong profit-taking and global market adjustments. That marked a swing of more than VNĐ20 million per tael in just two days, one of the steepest short-term drops in recent memory.

Silver surged alongside gold earlier in the week, with some domestic silver products outpacing gold’s gains on a percentage basis. Certain sterling silver bars reached over VNĐ4 million per tael and above VNĐ100 million per kilogram, reflecting double-digit weekly gains before easing slightly as prices corrected.

Against this backdrop of wild price swings, social media platforms have also seen a flood of unverified claims that authorities might confiscate gold without invoices, fuelling fear and confusion among retail investors.

However, specialists say such rumours are completely false and legally baseless.

A long-time monetary policy observer from Đa Phương Law Firm said Decree 340 is designed to combat ‘goldisation’ of the economy, rein in smuggling and profiteering, and re-establish transparency in the gold market.

“Decree 340/2025/NĐ-CP does not target lawful assets held by citizens,” the expert said.

“Confiscation provisions apply only to unlicensed production or trading of gold bars, illegal import/export of gold materials and bullion, and business activities without proper licences – acts that harm the economy.”

The specialist also highlighted that spreading false information could be subject to penalties under the Law on Cybersecurity, urging investors to rely on official sources from the Government and the State Bank of Vietnam.

As gold prices soared then plunged, many retail buyers shifted interest to silver, seen as a more accessible store of value amid tightening gold supplies and elevated prices.

On Trần Nhân Tông Street in Hà Nội – long known as the capital’s 'gold street' – queues of buyers this week formed not for gold, but for silver bars.

Investors reported being unable to buy silver in the morning and learning in the afternoon that inventories had been exhausted, with some shops issuing appointment slips with delivery scheduled months out.

Chu Tuấn Long, a resident of Hà Nội, said he purchased about 21 kilogrammes of silver two weeks ago when prices were around VNĐ90 million per kilo, but now supply is scarce amidst high demand.

Financial analyst Lưu Điển said the price movements reflect a classic “communicating vessels” effect.

“When the traditional safe-haven channel – gold is tightened by regulation and priced at extreme highs, money flows to silver. Silver’s smaller denominations and liquidity make it easier for retail investors,” he said.

Yet he warned that part of the surge appears driven by fear of missing out, and that chasing silver after its recent rally carries short-term correction risks. He also noted that the buy–sell spreads remain wide, making active trading less attractive for quick gains without a long holding horizon.

Call for calm and diversification

Authorities and market watchers are urging investors to remain calm, avoid misinformation, and make purchases only at licensed outlets with fully documented invoices – described by experts as the best legal protection for asset ownership.

“Documentation is your best legal protection,” one analyst said.

Observers suggest that regulators should expand public communication about Decree 340 and improve the flow of legitimate gold and silver supply to meet genuine demand, rather than allow artificial scarcity to fuel irrational price spikes.

In the meantime, financial advisers are reminding investors not to 'put all their eggs in one basket' amid precious metal market turbulence. Alternatives like bank deposits or fundamentally sound equities may offer more stable avenues in a volatile environment.

For now, Decree 340 is being seen as a tool to clean up the gold market, and the notable shift toward silver appears to be a natural market reaction. What investors need most, experts say, is a cool head and reliable information so they do not become casualties of short-term price fever. — VNS