Gold prices skyrocket, Vinh city residents rush to sell

At 2:00 p.m. on August 8, despite the harsh weather due to the heat, gold shops in Vinh city were quite bustling with people coming to make transactions.

The number of people coming to sell gold increased many times compared to previous days. Photo: Thanh Phuc

Ms. Kim Anh, owner of a long-standing gold, silver and gemstone business on Cao Thang Street, said: “Normally, the peak trading hours of the day are early morning and late afternoon, but for the past two days, every hour has been crowded. The number of people coming to trade has increased many times compared to previous days. The price of gold has increased, so many people bring gold bars and jewelry to sell.”

On average, each day this system of gold and silver stores buys about 30-40 taels of gold, 6 times more than previous days.

In the past two days, the high price of gold in the world has caused the price of gold in the country to skyrocket. The price of SJC gold listed at gold shops in Vinh City ranges from 4,000,000 VND - 4,100,000 VND/tael for buying and 4,200,000 VND - 4,300,000 VND/tael for selling. The price of gold at this time has reached a record level in the past 6 years, so many people come to sell gold.

Ms. Nguyen Bich Thuy, Nghi Lien commune (Vinh city) said: "I have 2 children working abroad, the money they send back is invested in buying gold for storage. Now that the gold price has increased, I sell it to make a profit, switch to buying land or investing in other things, I don't dare to store gold for too long. Compared to when I bought it, now I sell it for a profit of about 800,000 VND/tael."

Gold prices are said to have surpassed a record high in the past 6 years with a listed price of over 42 million VND/tael. Photo: Thanh Phuc

Because the price of gold has been increasing continuously, businesses are quite cautious in purchasing, not daring to keep the goods but often buying and then selling wholesale.

Ms. Manh My Duyen, Director of a gold and gemstone trading company on Tran Phu Street, said: “The number of people coming to sell gold is quite large, mainly gold bars, rings and jewelry. The main customers are well-off people who have extra money to invest in gold to make a profit; people who have gold as gifts for weddings, housewarmings, etc. also bring a lot to sell.

In the past two days, the amount of gold my company has bought has increased 4-5 times compared to the previous days. However, to ensure safety, after buying, we “cut the profit” on the same day and do not dare to “hold the gold” like before.

Gold price today August 7 is about to surpass the 'peak' of 41 million VND/tael

Gold price today, August 7, on the world market is hanging at a 6-year peak and the upward trend is expected to continue because US-China tensions have fallen into an uncontrollable state.

Since the beginning of the week, the domestic gold price has increased by more than 2.2 million VND/tael. Currently, the gold price is on an upward trend and fluctuates unpredictably.

According to the gold business community, in the coming time, the gold price is expected to continue to remain high. However, given the attractiveness of this market, economic experts also recommend that organizations and individuals should be cautious and consider carefully before deciding to invest in gold.

Meanwhile, the number of people buying gold has decreased significantly compared to previous months, partly due to the high price of gold, and partly due to the belief that the seventh lunar month is the "ghost month" when weddings and ceremonies are avoided, so few people buy gold.

According to experts' analysis, the main reason lies in the world situation, especially the continuously escalating US-China trade conflict.

After President Donald Trump announced an additional 10% tax on Chinese goods worth $300 billion on September 1 and kept the previous taxes, China retaliated by announcing it would not buy American agricultural products.

In response to China's move, US Treasury Secretary Steven Mnuchin announced that the US government has determined that "China is a currency manipulator". The US side also informed that it will consult with the International Monetary Fund (IMF) to "eliminate the unfair competitive advantages created by China's latest actions".

Analysts are concerned that this situation will impact the world economy and the gold market will be strongly affected by this fluctuation.

Thanh Phuc