Gold prices have risen sharply, but stores are limiting sales.
The sharp increase in the price of gold rings and gold bars has led to a surge in demand. Many shops in Hanoi are limiting sales, creating long queues that last from morning until noon.
On November 13th, gold prices continued to rise sharply at many stores. Despite the rapid increase in gold prices, buying gold in Hanoi was very difficult because many stores limited the quantity they sold each day. Many gold businesses recorded long queues of people waiting to buy gold from early morning.
Several shops in Cau Giay district reported that the high volume of customers has resulted in a constant shortage of gold rings. Despite continuous price updates, the supply still cannot meet the surging demand.
Ms. Nguyen Thi Trang (Cau Giay district) said that the store only allows customers to buy a maximum of 5 taels of gold per person. Even though the price of gold is increasing daily, the amount of gold sold remains limited, causing customers to wait for more than an hour.
Mr. Pham Huy Tuan (Tu Liem) has been trying to buy gold for many days but without success. He shared that sometimes the store was closed when he arrived, and other times it was almost his turn but they ran out of stock. The sharp increase in gold prices has led to a surge in demand for gold as a store of value, putting significant pressure on the domestic gold supply.
As of 5:00 PM on November 13th, the price of SJC gold bars at Phu Nhuan SJC, DOJI Group, PNJ, and Ngoc Tham was listed at 152.5-154.5 million VND/ounce (buying price - selling price), an increase of 3 million VND/ounce in both directions.
The price of SJC gold bars at Bao Tin Minh Chau stores is listed at 153-154.5 million VND/ounce (buying price - selling price), an increase of 3 million VND/ounce in both directions.
Phu Quy Gold, Silver and Gemstone Group listed the price of SJC gold bars at 151.5-154.5 million VND/ounce (buying price - selling price), an increase of 3 million VND/ounce in both directions.
DOJI Group listed the price of gold rings at 150.5-153.5 million VND/ounce (buying price - selling price), an increase of 2.5 million VND/ounce in both directions.
Bao Tin Minh Chau listed the price of gold rings at 151.5-154.5 million VND/ounce (buying price - selling price), an increase of 2.7 million VND/ounce in both directions.
Phu Quy Gold, Silver and Gemstone Group listed the price of gold rings at 151.2 - 154.2 million VND/ounce (buying price - selling price), an increase of 3 million VND/ounce in both directions.
Dr. Nguyen Tri Hieu analyzed that the sharp increase in gold prices partly stems from global political and economic fluctuations. The US government shutdown lasting more than a month, a weakening labor market, and inflation rising to 3% have put significant pressure on financial assets.
He stated that US tax policies have caused significant volatility in commodity markets. World gold prices have risen above $4,000 per ounce, pushing domestic gold prices up to over 150 million VND per tael. In the near future, gold prices are likely to continue rising if geopolitical instability persists.
Expert Trinh Ha (Exness Investment Bank) believes that although gold prices still have room to rise, buyers need to be cautious. In the long term (5-10 years), gold prices typically yield much lower returns than the S&P 500.
The biggest risk is "tying up capital" when buying gold at high prices. Investors may miss out on opportunities to invest in higher-yielding channels such as stocks or real estate. Compared to gold, these two markets have a more stable long-term growth history.
The State Bank of Vietnam is proposing to raise the gold holding limit from 2% to 5% of equity capital for banks authorized to produce and import/export gold. This relaxation of the limit could help increase the supply of gold bars amidst volatile global gold prices.
The draft divides banks into two groups:
The group is permitted to produce and import/export gold bars: maximum gold holdings of 5% of equity capital.
The group is only allowed to buy and sell gold bars: the 2% rate remains unchanged.
According to calculations, if all eight major banks (Vietcombank, VietinBank, BIDV, Agribank, Techcombank, MBBank, VPBank, ACB) are fully licensed, their maximum gold holdings could reach approximately 20 tons – equivalent to over $2.56 billion at international gold prices.
