Gold price fluctuations during God of Wealth days

The custom of buying gold on God of Wealth Day (January 10) was previously only popular 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 January 10, 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 37.15 million VND per tael for buying and 37.7 million VND for selling. However, by 11:00 a.m. the same day, the price of SJC gold had decreased by 300,000 VND in both directions. Although it rebounded in the early afternoon when buying power increased from the office sector, by 3:00 p.m. the same day, the price of this precious metal had reached a bottom of only 37.3 million VND 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 rose to 33.8 million for buying and 34.8 million per tael for selling on February 13 - 4 days before the God of Wealth's day. But on the day of the God of Wealth's day, each tael of SJC gold was less than 34 million 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 consecutively in recent years. Even this year, the gold price has increased sharply by several hundred thousand dong 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 dong 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 the God of Wealth day, when the 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 after, they can lose up to half a million dong.

People's demand usually 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 luck.Besides, on God of Wealth days, the price difference between different types of productsgold 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.