Gold price drops shockingly, Nghe An market is quiet

In the past 2 days, gold prices have continuously dropped shockingly. Photo: Thanh Phuc

Tuesday morning (July 19),domestic gold pricecontinued to decrease sharply with a decrease from 2.4 million VND to 4.3 million VND/tael. With this adjustment, the gold price fell to around 63 million VND/tael for buying and 65 million VND/tael for selling.

In Nghe An alone, the price of SJC gold bars is listed lower than the domestic gold price. Specifically, the price of SJC gold bars at Kim Thanh Huy Gold and Silver Company Limited (Cao Thang Street, Vinh City) is listed at 61 million VND/tael (buy) and 63.5 million VND/tael (sell). The price of DOJI brand gold bars at Cao Thang Street (Vinh City) is listed at 59.95 million VND/tael (buy) and 62.55 million VND/tael (sell), respectively, down nearly 5 million VND for buying and 3 million VND for selling compared to the previous morning.

Although the price of gold has dropped dramatically, transactions in Nghe An are quite quiet in both buying and selling directions. Photo: Thanh Phuc

Gold prices plummet, but gold transactions in Nghe An are quite quiet. At a large, reputable gold shop in front of Vinh market, which used to be crowded with people jostling and lining up to wait their turn, this morning (July 19), only a few people came to survey and consult prices.

Mr. Tran Than - the owner of this gold shop said: "The price of gold has dropped like never before, in just 2 trading sessions yesterday and this morning, SJC gold bars "evaporated" more than 6 million VND/tael, but both sellers and buyers have decreased sharply. There are 2 reasons why gold transactions in Nghe An are quieter than other places in the country. Firstly, in Nghe An, most of the customers are people buying to store, using idle money to buy, very few investors, speculators of gold from mobilized capital. That amount of gold is "savings", "safety", if the price goes up, many people will sell to take profit, but if the price goes down, they will not rush to sell.

According to the gold shop owner, the reason why the gold market in Nghe An is quiet due to price fluctuations is because the customers who buy and sell gold are mainly people who use their spare money to buy and store, and very few are gold investors. Photo: Thanh Phuc

At this time, the selling price also decreased sharply when bank interest rates were increasing, the real estate market began to recover and gold prices were erratic. Many people were worried that gold would continue to decrease sharply, so they were not in a hurry to buy gold at this time. Temporarily, they looked for other safer investment channels. Therefore, although gold prices fluctuated strongly, transactions were still quiet.

A quick survey on the morning of July 19 showed that most of thebig gold shop in Vinh cityare quite deserted, and small gold shops have almost no customers coming to trade. Meanwhile, in the districts, the number of customers coming to trade is higher than usual. In which, mainly people come to buy gold. Ms. Trinh Thi Quy came to buy SJC gold bars at the gold shop in block 10, Dung town and said: "There are still two months until the big event for my son, but now I heard that the gold price has decreased, so I came to buy 1 tael as a wedding gift for my son. I don't know if the gold price will decrease again in the near future, but compared to a few months ago, this price has decreased by nearly 10 million VND/tael."

In many places, especially in rural areas, the gold market is quite active when the gold price drops, many people take advantage to buy. Photo: Thanh Phuc

At reputable gold and silver shops in Dien Chau and Yen Thanh, the number of people buying gold is also higher than before. According to the gold shop owners, the majority of customers come to buy 9999 round rings instead of buying gold bars like before. Most of the customers are hoarders, the amount of purchase is also small, only a few to 1 tree.

Ms. Van Ly - an employee of a gold shop in Bao Thanh (Yen Thanh) said: "Because the price of 9999 gold is quite stable, not much fluctuation, higher safety, so it is chosen by more people. Meanwhile, the price of gold bars fluctuates erratically, the difference with world gold and the difference between buying and selling is quite high, so people are afraid of risks. Specifically, despite a sharp decrease, the price of domestic SJC gold bars is still different from the world gold price by over 15 million VND/tael. Meanwhile, 9999 gold rings only stay the same or increase slightly by 50,000 VND/tael."

But instead of buying SJC gold bars, people switched to buying 9999 round rings when the price of this type of gold fluctuated little. Photo: Thanh Phuc

According to the assessment,Gold prices are currently unpredictable.. While the world gold price this morning (July 19) showed signs of a slight recovery, the domestic gold price continued to plummet. Therefore, currently, gold is not the number one choice for investment, those who have gold have no need to sell to "cut losses" and those who have a need to buy are quite few as they switch to depositing in banks, buying land or buying USD.