Gold prices continue to fall, Nghe An people buy gold to store

On the morning of July 11, the gold shop on Cao Thang Street was quite busy. Photo: Thanh Phuc

Closing the trading session on Monday morning (July 11), at theLarge jewelry store on Cao Thang Street(Vinh City), the listed price of SJC gold bars is 66.80 million VND/tael (buy) and 69.50 million VND/tael (sell) respectively; The price of 9999 round rings is 5.120 million VND/tael (buy) and 5.450 million VND/tael (sell) respectively. According to the owner of this gold shop, this is the lowest price in many months. Compared to yesterday's trading session, the price of gold bars continued to decrease by 50,000 VND/tael.

The continuous decrease in gold prices in recent weeks has made the gold market in Nghe An more active in terms of sales. Accordingly, the amount of gold sold is mainly jewelry gold, round rings and western gold. The amount of gold bars bought shows signs of decreasing.

At the close of trading on Monday morning, July 11, the listed price of SJC gold bars was 66.80 million VND/tael (buy) and 69.50 million VND/tael (sell). Photo: Thanh Phuc

Ms. Kim Anh - owner of a gold shop located on Cao Thang Street said: "The current gold price is at its lowest level in the past 9 months. However, the market is not very active. Firstly, because currently, goods are increasing according to gasoline prices; the real estate market is showing signs of slowing down, so people, especially those with capital reserves, if they have bought land, are not in a hurry to sell it to speculate on gold and vice versa, if they are "holding gold", they are also "sitting still" when the gold price is decreasing, people are not selling to take profit.

Second, the economy is gradually recovering, people are investing capital to do business, so the number of people pouring into buying gold for investment and storage is very rare. People who come to trade mainly buy gold for weddings, buy gold as gifts and gold jewelry. The number of customers in this direction of transaction has increased by about 30-40% compared to before."

Most people come to buy wedding gold and jewelry gold. Photo: Thanh Phuc

Come to consult the gold buying price, Ms. Nguyen Thi Tu,Nghi Xuan commune(Nghi Loc) decided to wait a little longer before deciding whether to sell or not the 8 gold bars that her son, who is working in Korea, sent money back for her to buy and store.

Ms. Tu said: “Of the 8 taels of gold, 5 were bought when the price was 55 million VND/tael and 3 were bought when the price had increased to 62 million VND/tael. If sold now, that amount of gold would be worth more than 60 million VND in profit, which is more profitable than depositing it in the bank. This time, I need money to buy land for my children, so I sold the gold. However, the price of gold is currently decreasing, so I am considering it.”

In contrast to gold shops in Vinh city, gold shops in remote districts are quite bustling when gold prices drop, causing people in the regions to "empty their wallets" to buy gold for storage.

Mr. Tran Huy Than - owner of a gold shop next to Dinh market, Do Luong town said: "In the past few weeks, the price of gold has continuously decreased and is at the lowest level in the past 9 months, so many people have boldly "spent money" to buy gold to store. This amount of money is mostly idle money after selling buffaloes, cows, pigs, chickens; foreign currency sent back or just sold land after the "fever" of land plots in the countryside in early March and April. However, the number of purchases is not much, the most people buy about 10-20 taels of gold, and the most common is a few taels".

Many gold shops in the districts are quite crowded as people take advantage of the falling gold prices to use their idle money to buy and store. Photo: Thanh Phuc

After the "peak" period when the price of gold bars exceeded 75 million VND/tael in early March 2022, there have been consecutive declines. The sharpest decline was in the past 3 weeks. By the morning of July 11, the world gold price continued to be under downward pressure in the context of the USD on the international market remaining at its highest level in the past 20 years, when the US Federal Reserve (Fed) is expected to have another round of adjusting the base interest rate to control inflation. After consecutive declines, the current world gold price converted at the listed exchange rate is only about 49.2 million VND/tael.

Meanwhile,SJC gold bar priceDomestic gold prices are still high compared to world gold prices (a difference of nearly 20 million VND/tael). In Nghe An, gold prices are listed at different stores, ranging from 66.5 million VND - 66.8 million VND/tael (buy) and 69.5 million VND - 69.7 million VND/tael (sell). Accordingly, the difference between buying and selling is up to over 2.5 million VND/tael.

Currently, the domestic gold price is quite different from the world gold price. The difference is about 20 million VND/tael. Photo: Thanh Phuc

According to the assessment, the world gold price may increase again in the near future, however, it is difficult to increase sharply like in the past. On the other hand, when the difference between domestic and world gold prices is too high, the level of safety when investing in this precious metal is also difficult to ensure. Therefore, people should consider carefully when buying gold for storage and speculation.