Gold ring market in Nghe An is bustling
For nearly a month now, the price of SJC gold bars has been “still”, while the price of gold rings has increased, approaching the price of gold bars. The gold ring market in Nghe An has become bustling.
At the end of last week's trading session, Saigon Jewelry Company listed the buying and selling price of SJC gold bars at 74.98-76.98 million VND/tael. Doji Gold listed the price of SJC gold bars at 74.98-76.98 million VND/tael. Doji Hung Thinh Vuong 9999 gold rings stood at 74.65-75.9 million VND/tael, unchanged from the closing price of the most recent session.
Phu Nhuan Jewelry Joint Stock Company (PNJ) listed the price of SJC gold at 74.98-76.98 million VND/tael. The price of gold rings is listed at 73.95-75.6 million VND/tael, unchanged from yesterday's closing price. Phu Quy SJC is listing SJC gold bars at 75.5-76.98 million VND/tael.
In Nghe An, on the morning of July 1, the price of 9999 gold rings was listed at 76.50 million VND/tael (selling) and 73.20 million VND/tael (buying).
The price of gold bars has not been updated by businesses yet. Many gold shops have stopped trading gold bars for many weeks now, and if they do, they only trade in the buying direction.
Ms. Duong Thi Anh Tuyet, a resident of Cua Nam Ward (Vinh City) said: “When there was information about the decrease in gold bar prices, because I wanted to buy 2 taels of gold bars to pay off the gold debt I had borrowed before, I gathered money to buy. However, I went to 4-5 gold shops to ask, but they all said “temporarily out of stock” and did not know when it would be available. I went to some large businesses, they quoted prices but also said they were temporarily out of stock, when they were available they would contact me later.”
Meanwhile, with the mentality that gold is something to save, many people bought gold to hoard when the gold price reached a record peak, so now that the gold price has decreased, they have lost tens of millions of VND/tael. Ms. Tran Thi Thanh H. (Dai Dong commune, Thanh Chuong) said that she bought 15 taels of SJC gold bars at the price of 91.4 million VND/tael in May 2024.
"At that time, gold prices were constantly increasing, I thought the price of gold could increase to 100 million VND/tael. I knew the price was too high, but the interest rate on savings was low, so I went to buy gold. To buy enough gold, I had to ask acquaintances in Hanoi and Da Nang to line up to buy for me because Nghe An could only collect about 7 taels.
Up to now, the price of gold bars is only 75 million VND/tael. Thus, for each tael of gold, I have lost nearly 17 million VND. The money to buy gold is idle money, I did not borrow money so I do not need to think about cutting losses. I believe that the precious metal will recover in the near future."
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Since the State Bank implemented the plan to sell gold directly to four state-owned commercial banks and Saigon Jewelry Company (SJC) for these organizations to resell to the people, the gold market has recorded a sharp decline in price.
Just over a week after the new stabilization measures were announced on May 27, the price of SJC gold bars has dropped by nearly VND13 million/tael. Up to this point, the price of SJC gold bars has been flat for 3 weeks with the listed selling price at VND76.98 million/tael.
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Meanwhile, the price of gold rings last week marked the third consecutive week of increase, with listed transaction prices at gold businesses around VND73.95 million/tael for buying and VND76 million/tael for selling. Compared to the closing price of the previous trading session, it increased by VND250,000/tael.
Therefore, for gold investors, gold bars are no longer the optimal choice, instead gold rings are the preferred choice.
“People’s demand for gold for storage and investment is quite high. While the price of gold bars has dropped sharply and fluctuated continuously, gold rings are stable and close to the world gold price, so many people have switched to choosing them. For nearly a month now, our gold shop has mainly sold 9999 gold rings, the amount of gold rings sold is 3-4 times higher than before,” said Ms. Kim Anh, owner of a gold shop on Cao Thang Street (Vinh City).
Geopolitical instability in the Middle East, Ukraine, climate change and technology-driven economic challenges are all risk factors that are driving demand for gold as a safe haven. Bannockburn Global Forex CEO Marc Chandler is bullish on the yellow metal in the short term. He believes that the sudden recovery of gold and the recovery of all the previous losses is enough to extend the precious metal's rally for a fifth consecutive month. If prices rise above $2,350 an ounce, followed by $2,360 an ounce, it would not be surprising to see $2,400 an ounce. He said that two events that could drive gold's recovery are the first round of French elections and the US jobs report.
