Gold price fluctuations during God of Wealth's day

The custom of buying gold on God of Wealth Day (January 10) used to only spread among a small group of merchants and businessmen in Saigon, but in the past 5 years it has spread to the North, especially Hanoi.

The past three years have shown that the price of SJC gold often increases quite strongly in the week before the God of Wealth period and then suddenly decreases on the 10th of January, even in some years it decreases deeply like in 2017.

On February 6, 2017, the 10th day of the first lunar month of the year of the Rooster, the price of SJC gold opened at VND37.15 million per tael for buying and VND37.7 million per tael for selling. However, by 11am the same day, the price of SJC gold had dropped by VND300,000 in both directions. Although it rebounded in the early afternoon when buying power increased from the office sector, by 3pm the same day the price of this precious metal had reached a bottom of only VND37.3 million per tael.

The story of gold prices gradually decreasing at the end of God of Wealth Day also happened similarly in 2016.

However, if we move back the time frame a week, the movement of SJC gold price is completely different.

Gold prices started to rise on February 1, 2017 - a week before the God of Wealth Day. Two days later, the precious metal even peaked at over VND38 million per tael and only cooled down a day later.

This scenario also appeared in 2016 when the price of SJC gold increased to 33.8 million VND for buying and 34.8 million VND per tael for selling on February 13 - 4 days before the God of Wealth's day. But on the God of Wealth's day, each tael of SJC gold was less than 34 million VND for buying.

The cycle of increasing in the previous week and hitting bottom near the end of the God of Wealth Day has been repeated continuously in recent years. Even this year, the price of gold has increased sharply by several hundred thousand VND after only the first 3 trading sessions of the year of Mau Tuat. As of today (February 24 - January 9), the selling price of SJC gold has approached the 37.5 million VND mark.

Not only that, gold businesses often tend to widen the buying and selling margin these days.Normally, the difference between buying and selling prices is only one or two hundred thousand dong, but at the peak of God of Wealth Day, when buying power is high, gold shops push it up to more than half a million dong. Thus, if people buy gold and resell it immediately afterwards, they can lose up to half a million dong.

Demand from people often appears right after Tet and lasts until close to the God of Wealth's day with the mentality of buying gold at the beginning of the year for good luck.Besides, on God of Wealth days, the price difference between types ofgold of brands that can lup to several million dong even though they are on the same street.Even last year's SJC Kim Dau gold product, each store with its own design has a different price.

On God of Wealth Day, gold prices are often less affected by the world and businesses often try to promote their own branded products.With the mindset of buying gold for luck and buying in small amounts (half to one tael), the difference has almost no impact on consumer decisions.