The gold ring market in Nghe An is booming.
For nearly a month now, the price of SJC gold bars has remained stagnant, while the price of gold rings has increased, approaching the price of gold bars. The gold ring market in Nghe An has become vibrant.
At the close of trading last week, Saigon Jewelry Company listed the buying and selling price of SJC gold bars at 74.98-76.98 million VND/ounce. Doji listed the price of SJC gold bars at 74.98-76.98 million VND/ounce. Doji Hung Thinh Vuong 9999 gold rings remained unchanged at 74.65-75.9 million VND/ounce compared to the previous closing session.
Phu Nhuan Jewelry Joint Stock Company (PNJ) listed the price of SJC gold at 74.98-76.98 million VND/ounce. The price of gold rings was listed at 73.95-75.6 million VND/ounce, unchanged from yesterday's closing price. Phu Quy SJC is listing SJC gold bars at 75.5-76.98 million VND/ounce.
In Nghe An province, on the morning of July 1st, the price of 9999 gold rings was listed at 76.50 million VND/ounce (selling price) and 73.20 million VND/ounce (buying price).
The price of gold bars has not yet been updated by businesses. Many gold shops have stopped trading gold bars for several weeks now, and if they do trade, it's only in the buying direction.
Ms. Duong Thi Anh Tuyet, a resident of Cua Nam ward (Vinh City), said: “When I heard that the price of gold bars was falling, I needed to buy 2 taels of gold to repay a previous gold loan, so I gathered money to buy some. However, after asking at 4-5 gold shops, they all said they were ‘temporarily out of stock’ and didn’t know when they would have more. I went to some large businesses, they quoted prices but also said they were temporarily out of stock and would contact me later when they had more.”
Meanwhile, with the mindset that gold is a store of value, many people bought gold to hoard when gold prices reached record highs. Therefore, now that gold prices have fallen, they are losing tens of millions of dong per ounce. Ms. Tran Thi Thanh H. (Dai Dong commune, Thanh Chuong district) said that she bought 15 ounces of SJC gold bars at 91.4 million dong per ounce in May 2024.
"At that time, the price of gold was constantly rising. I thought it could reach 100 million VND per tael. I knew the price was too high, but the interest rate on savings was too low, so I went to buy gold. To buy enough gold, I had to ask acquaintances in Hanoi and Da Nang to queue up and buy it for me because I could only gather about 7 taels in Nghe An."
Currently, the buying price of gold bars is only 75 million VND per tael. Therefore, I have lost nearly 17 million VND per tael of gold. The money I used to buy the gold was my spare cash; I didn't borrow any money, so I don't need to think about cutting my losses. I believe that the precious metal will recover in the near future.”
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Since the State Bank of Vietnam implemented a plan to sell gold directly to four state-owned commercial banks and Saigon Jewelry Company (SJC) for these organizations to resell to the public, the gold market has seen a sharp decline in price.
Just over a week after the new stabilization measures were announced on May 27th, the price of SJC gold bars has fallen by nearly 13 million VND per tael. To date, the price of SJC gold bars has remained stable for three weeks, with the selling price listed at 76.98 million VND per tael.
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Meanwhile, the price of gold rings marked its third consecutive weekly increase last week, with gold businesses listing prices around 73.95 million VND/ounce for buying and 76 million VND/ounce for selling. Compared to the closing price of the previous week, this represents an increase of 250,000 VND/ounce.
Therefore, for gold investors, gold bars are no longer the optimal choice; instead, gold rings are preferred.
“The demand for gold as a store of value and investment is quite high. While the price of gold bars has fallen sharply and fluctuated constantly, gold rings are more stable and closely track world gold prices, so many people are choosing them. For almost a month now, our gold shop has mainly sold 9999 gold rings, with sales volume increasing 3-4 times compared to before,” said Ms. Kim Anh, owner of a gold shop on Cao Thang Street (Vinh City).
Geopolitical instability in the Middle East and Ukraine, climate change, and economic challenges driven by technology are all risk factors fueling demand for gold as a safe haven. Marc Chandler, CEO of Bannockburn Global Forex, remains optimistic about the yellow metal in the short term. He believes that a sudden rebound and recouping previous losses would be enough to extend the precious metal's price rally for a fifth consecutive month. If prices surpass $2,350 per ounce, followed by $2,360 per ounce, it wouldn't be surprising if $2,400 per ounce is reached. According to him, two events that could boost gold's recovery are the results of the first round of the French election and the US jobs report.