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

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.

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.

“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.

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.

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.

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.