Economy

Gold price drops sharply, in Nghe An still maintains large buying-selling gap

Thanh Phuc DNUM_CAZAEZCACF 14:40

On the morning of April 20, the gold market in Nghe An witnessed a sharp price reduction, following the general trend of the domestic market. However, the difference between buying and selling prices was very high, 2.5 times higher than the national average. This development made the market both exciting and potentially risky...

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On the morning of April 20, gold prices adjusted down sharply. Photo: TP

Following the Deputy Prime Minister's directive to tighten inspection and strictly handle speculation and price manipulation, domestic gold prices fell sharply. Accordingly, on the morning of April 20, the price of SJC gold bars was listed at VND112-114 million/tael (buy - sell); down VND5 million/tael for buying and down VND6 million/tael for selling. The difference between buying and selling prices was at VND2 million/tael.

DOJI round gold ring price is listed at 109.5-113.5 million VND/tael (buy - sell); down 5.5 million VND/tael for buying and down 5 million VND/tael for selling. The difference between buying and selling prices is 4 million VND/tael; Bao Tin Minh Chau listed gold ring price at 111-114 million VND/tael (buy - sell); down 5.5 million VND/tael for both buying and selling compared to early this morning. The difference between buying and selling prices is 3 million VND/tael.

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In Nghe An, gold prices have decreased by 5-6 million VND/tael compared to the peak. Photo: TP

In Nghe An, gold prices were also adjusted down by private gold and silver businesses following the domestic gold price. Specifically, the price of 9999 gold rings was listed by businesses at around VND104-106 million/tael (buy) and VND114-115 million/tael (sell). The decrease of VND5-6 million/tael compared to the peak of the week is significant. However, what is noteworthy is that the difference between buying and selling prices is up to VND8-9 million/tael, 2-2.5 times higher than the national average difference (VND3-4 million/tael).

This abnormality has made the market in Nghe An, although bustling, more of a “probing” nature than a large transaction. According to records, on the morning of April 20, many people came to gold shops to consult prices, some decided to buy with the mentality of catching the bottom, but many also chose to sell to take profit because they were worried that the gold price would continue to adjust.

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Gold has decreased so the market is more vibrant than before. Photo: TP

“I bought gold at 97 million VND/tael, now selling it for more than 105 million VND, I have made a profit of 8 million VND/tael. Compared to a few days ago, the price of gold has dropped sharply, the difference between buying and selling is large, so I am a bit hesitant,” said Mr. Nguyen Thac Hanh, a customer in Vinh City.

According to gold shop owners, the main reason for the difference lies in the instability and rapid fluctuation of the market. In recent days, domestic and international gold prices have been “jumping” every hour, forcing small gold shops to protect themselves by widening the buying and selling margins to avoid the risk of loss when importing and exporting goods not in time.

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The number of customers coming to gold shops is quite crowded, mainly looking for prices. Photo: CSCC

A shop owner in Vinh City frankly said: “Gold prices fluctuate rapidly, if we don’t update after just 1-2 hours, we will lose immediately. We don’t have a large distribution network, nor can we collect as much as the big brands, so we have to keep a high margin for protection.”

In addition, some other reasons also contribute to the difference in Nghe An being higher than the average. These are regionalization, the small local market leading to low competition, shops easily "brace" prices; more limited supply, small businesses do not import directly from large sources, often buy through intermediaries, so the input price is already high.

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Some people decided to sell to take profit at this time but still hesitated because the difference between buying and selling prices was too high. Photo: TP

However, a too high buy-sell spread has a big impact on the market, which is a higher risk for buyers and more difficult for sellers to close profits. Therefore, people need to closely monitor price fluctuations, carefully consider the time to buy and sell, and avoid trading during this sensitive market period.

On the other hand, many people expect that when the gold price "temporarily bottoms out", they think that the price will soon rebound, so they still choose to spend money, mainly 1-2 taels to store, limiting risks when the price continues to reverse.

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People need to be careful when buying and selling gold at this time. Photo: TP

Gold prices are still sensitive to global developments, and the domestic market cannot be separated from that influence. In Nghe An, the current excitement is a good sign, but the high difference is a reminder for people to be careful, alert, and always keep their financial interests under control.

5 things to note when buying and selling gold during volatile times:

  1. Regular price monitoring, flexible hourly trading
  2. Prioritize places with public price listing and reasonable difference
  3. Clearly define your goals: short-term investment or long-term storage
  4. Calculate the buy-sell spread carefully to avoid losses.
  5. Do not trade based on crowd psychology or false expectations.

Thanh Phuc