Gold prices surge, trading in Nghe An remains sluggish.
On the morning of January 14th, domestic gold prices continued to rise sharply, reaching record highs across many brands. In contrast to this upward trend, the gold market in Nghe An remained relatively quiet, with trading primarily serving real needs, as residents and small-scale investors remained cautious due to price fluctuations and the large buy-sell spread.
As of around 10:00 AM on January 14th, the price of SJC gold was commonly listed by major businesses such as Saigon Jewelry Company (SJC), Doji, and Phu Quy at 160.9 – 162.9 million VND/ounce (buying price – selling price). Phu Quy Company adjusted its buying price lower to 160.4 million VND/ounce, while the selling price remained at 162.9 million VND/ounce. Compared to the previous trading session, the price of SJC gold at these businesses increased by approximately 900,000 VND/ounce.
Following the trend of gold bars, the price of gold rings also increased sharply. At Bao Tin Minh Chau Company, gold rings were traded at around 159.9 - 162.9 million VND/ounce; while at Phu Quy Company, the buying and selling prices were at 158.2 - 161.2 million VND/ounce, an increase of 900,000 VND/ounce compared to the closing price on January 13th. This development shows that the upward trend in gold prices is not only concentrated in branded gold bars but has also spread to gold rings, which are popular among people for investment purposes.
On the world market, gold is trading around $4,623 per ounce, up $31 per ounce compared to the same time yesterday. Converted using the USD exchange rate at Vietcombank, the world gold price is equivalent to approximately 147 million VND per tael, about 15.9 million VND per tael lower than domestic SJC gold. This large gap continues to reflect the significant difference between the domestic and world gold markets – a factor that makes many investors hesitant in short-term buying and selling decisions.
In Nghe An, at around 11:00 AM on the same day, private gold and silver businesses listed gold prices at 15.1 – 15.2 million VND/tael (buying price) and 15.45 – 15.6 million VND/tael (selling price). Gold from major brands had higher prices, commonly around 15.7 million VND/tael (buying price) and 16 million VND/tael (selling price). However, when contacting several branded gold ring retailers, staff indicated a temporary shortage of supply.
Meanwhile, at private gold and silver shops, the supply of gold rings is quite abundant. “Currently, we have gold rings available from 0.5 tael to 10 taels; customers can buy any quantity they want without needing a deposit; payment can be made in cash or via bank transfer,” said Ms. Mai Phuong, an employee at a gold shop on Cao Thang Street. Despite the readily available supply, the number of customers transacting on the morning of January 14th was quite low. The atmosphere on Cao Thang Street, known as the “gold street,” was much quieter than during previous gold price surges, with a noticeable decrease in the number of customers and each transaction being on a small scale.
Some people have a habit of buying gold as a store of value when they have spare money, regardless of the high price. Ms. Vuong Thi Huyen Anh, residing in Truong Vinh ward, said that at the end of the year she had about 50 million VND left over, so she bought 3 taels of gold to save. “I mainly save gold to protect my money from devaluation, considering it a reserve asset. I'll sell it when I need money, without focusing too much on profit or loss,” Ms. Huyen Anh shared. This viewpoint is quite common among those who buy gold for financial protection purposes, rather than speculation.
Conversely, many people buying gold for specific needs such as weddings or debt repayment are still forced to "spend the money" despite the high price. Mr. Nguyen Quoc Tuy, from Hung Nguyen commune, said his family bought four gold rings, each weighing 0.5 tael, as wedding gifts for two nephews. "Because the price is high, instead of buying 1-tael rings, I divided them into smaller rings so that all the nephews would have a share. Wedding gifts can't wait for the price to rise," Mr. Tuy said. Similarly, Ms. Luong Thi Tuyet Anh, residing in Vinh Loc ward, has a debt of 2 taels of gold to repay by Tet (Lunar New Year), and is worried that the price will continue to rise, so she decided to buy early to minimize risk.
In contrast to those buying gold for real needs, many small-scale investors are choosing to stay out of the market. Although gold prices have risen sharply, they have not yet surpassed the peak of late October, while the buy-sell spread in Nghe An province is fluctuating between 3.5 and 4.5 million VND per tael. This large spread increases short-term risk. Ms. Phuong Ng., a gold investor in Thanh Vinh ward, said she bought 3 taels of gold at 158 million VND per tael due to fear of missing out on an opportunity, but is still at a loss of about 7 million VND per tael, so she doesn't dare buy more.
In reality, despite the sharp increase in gold prices, market sentiment in Nghe An remains quite cautious. Amidst unpredictable fluctuations, the large gap between domestic and international prices, along with high buy-sell margins, are creating bottlenecks that are preventing short-term investment capital from returning, even though gold remains a familiar safe haven for people at the end of each year.
