Gold jewelry consumption increases sharply

The amount of gold jewelry consumed in the Vietnamese market in the third quarter of 2015 increased by 31% compared to the same period last year due to the decrease in gold prices, according to a recent report by the World Gold Council (WGC).

Figures given in the report show that in the third quarter of 2015, the demand for gold jewelry in Vietnam was 3.5 tons, up 31% over the same period last year, but down compared to the first two quarters of this year. In the first and second quarters, the demand for gold jewelry in Vietnam was 4.4 tons and 3.7 tons, respectively.

Customers buy gold at a DOJI store on Ham Nghi Street, District 1, HCMC

According to the report, gold demand in Indonesia, South Korea and Vietnam grew by double digits, partly due to falling gold prices. In Vietnam, faster economic growth and low inflation also contributed to the increase in demand for gold jewelry.

Meanwhile, total demand for gold bars and gold coins in Vietnam in the third quarter of this year was 11.5 tons, down 13% year-on-year, even though the drop in gold prices provided an attractive opportunity to buy and the gap between SJC gold bar prices and world gold prices also decreased significantly.

On the morning of November 14, SJC gold was sold by businesses at VND33.36 million/tael, and bought at VND33.14 million/tael, equal to the price at the end of yesterday, but down VND430,000/tael compared to the end of last month. In general, SJC gold prices are on a downward trend, but have not yet reached the lowest level this year.

Meanwhile, according to kitco.com, the world gold price on November 13 was at 1,083.9 USD/ounce, which is in a downward trend and is currently at its lowest level in the past 6 years. Because the world gold price decreased more sharply than the decrease of SJC gold price, the SJC gold price is 4 million VND/tael higher than the world gold price.

According to TBKTSG