Gold prices surge to record highs, but the market in Nghe An remains quiet.
While global and domestic gold prices have been continuously breaking records, reaching unprecedented highs, the gold market in Nghe An remains relatively quiet. Buying and selling transactions are minimal and sluggish. Notably, while gold prices are soaring, many people are beginning to shift their focus to investing in silver – a newly emerging store of value.
The market is sluggish.
On the morning of October 16th, domestic gold prices continued to surge as businesses and commercial banks simultaneously made sharp upward adjustments. Saigon Jewelry Company (SJC) listed the price of gold bars at 146.6 million VND/ounce for buying and 148.6 million VND/ounce for selling, an increase of 1.3 million VND/ounce compared to the previous day. In just one week, each ounce of SJC gold has increased by more than 6 million VND.
Gold rings and 99.99% pure gold jewelry also increased accordingly, currently fluctuating around 144.9 - 147.1 million VND/ounce. At Bao Tin Minh Chau alone, 9999 gold reached 152.3 million VND/ounce, even higher than SJC gold bars.
Domestic gold prices are rising due to the influence of the international market, with the spot price exceeding $4,230 per ounce on the morning of October 16th, an increase of more than $200 per ounce in a week.
However, in Nghe An, contrary to that record-breaking surge, the market remained quite quiet… Accordingly, on the morning of October 16th, in Nghe An, gold shops also adjusted prices upwards in line with the general trend, listing prices at 15.0 – 15.1 million VND/tael for buying and 15.3 – 15.5 million VND/tael for selling. However, contrary to the sharp increase in price, the market was quite calm.
Observations at several large gold and silver shops in Vinh City, such as SJC, PNJ, and DOJI, show that the number of customers has not increased significantly. Notably, major brands have almost no gold rings or gold bars left to sell, only gold jewelry.
Ms. Nguyen Phan Huong Phuong (Truong Vinh ward) shared: “I have some spare money that I want to invest in gold for profit, but everywhere I go, they say they're out of stock. Private shops have a high buy-sell price difference, so I don't dare to invest. Gold prices are rising every hour, and I'm afraid of buying at the peak and losing my capital.”
Staff at the DOJI gold shop on Nguyen Van Cu Street said that there is currently no stock available for sale due to high prices and few buyers. Similarly, other stores such as AJC (Cao Thang) and SJC (Nguyen Van Cu) are also out of gold bars, with only gold jewelry remaining for transactions.
Meanwhile, at private gold shops, the supply of 9999 gold rings remains abundant, but transactions are sluggish. Most gold shops are very quiet, with only sporadic transactions, not as bustling as when gold prices were low. Mr. Dau Huy Hoang, owner of Huy Hoan Gold and Silver Company (Hoang Mai ward), said: “These past few days, only customers have bought a few grams of gold as wedding gifts or to repay debts. With gold prices at record highs, few dare to buy, and those who have gold hoarded are hoping the price will rise further, so they don't want to sell yet.”
According to shop owners, the unique characteristic of the Nghe An market is that there are few large investors; most people buy gold for asset accumulation or for weddings and other celebrations. Therefore, when gold prices rise sharply, transactions become even more sluggish.
"The gold market is only active when prices are stable or falling. But with prices soaring like this, everyone is hesitant. Those with money are waiting for prices to drop, while those with gold are holding onto it. Recently, the gold market has been unusually quiet," commented Ms. Nguyen Kim Anh, owner of a gold and silver shop on Tue Tinh Street.
Many people are shifting their focus to investing in silver.
Amidst the gold rush, a notable phenomenon is the trend of capital shifting towards silver – a precious metal with a lower price but rapidly increasing value. A survey conducted on the morning of October 16th showed that the price of silver bars surged, fluctuating between 1.78 and 2.084 million VND/ounce (buying price – selling price), an increase of over 50,000 VND in just one trading session. This is also the highest price ever recorded.
According to gold and silver businesses, over the past month, there has been a significant increase in customer inquiries about purchasing silver, especially silver bars weighing from 1 tael to 1 kg.
Mr. Nguyen Phu, representing a gold and silver business on Cao Thang Street, said: “Previously, silver was mainly used for jewelry, and few people bought it for investment. But now, many people choose silver because it is cheaper than gold; you can accumulate it with just a few million dong. We have been authorized to be a distributor of silver for major brands.”
Ms. Hai Ha (Vinh Hung ward) is one of the first to shift her focus. She shared: “In Hanoi and Ho Chi Minh City, many people have been buying silver since last year. I also did some research and found that investing in silver is suitable for people with small capital. Gold is priced at over 15 million VND per tael, while silver is only about 2 million VND per tael, making it easy to buy and a good investment.”
According to experts, amidst global instability and soaring gold prices, silver also benefits due to its association with other precious metals. Silver also receives additional support from industrial demand, particularly in semiconductor chip manufacturing, clean energy, and batteries. Therefore, its return on investment in certain periods may surpass that of gold.
However, experts also warn that silver is not an absolutely safe investment channel. The silver market in Vietnam is small, with low liquidity, and short-term trading carries inherent risks. Silver prices often rise sharply but can also fall quickly, while the difference between buying and selling prices is quite high. Investors need to carefully consider their long-term storage goals and avoid following the crowd mentality.
