Gold bullion prices skyrocket, prompting people in Nghe An to switch to buying gold rings.

On the morning of May 9th, the buying price of domestic gold bars was 85.7 million VND, and the selling price was 88 million VND per tael, an increase of 500,000 VND compared to the end of yesterday. Meanwhile, the price of 9999 gold rings decreased by 200,000 - 300,000 VND compared to yesterday morning, specifically, the buying price was 73.3 million VND per tael, and the selling price was 75 million VND per tael.

World gold prices fell slightly to $2,312 per ounce, nearly $2 lower than yesterday. This is equivalent to approximately 71 million VND per tael (excluding taxes and fees). Despite the decline in world gold prices, SJC gold bars reached a historical peak and are 17 million VND per tael higher than world prices, while gold rings are about 4 million VND per tael higher.

In Nghe An, for several days now, the price of SJC gold bars has not been listed or updated specifically on price boards by gold shops; only when customers inquire do the gold shop owners announce the price.

Specifically, this morning (May 9th), when inquiring about the price of SJC gold bars at a large gold shop on Cao Thang Street, the staff member stated that the buying price was 83-84.5 million VND/ounce (depending on the design and whether the packaging was new or used), and the selling price was 88.3 million VND/ounce. However, according to this staff member, gold bar transactions are slowing down and advised customers to switch to buying gold rings instead.

Regarding the price of gold rings in Nghe An, on the morning of May 9th, the prices were listed as follows: Buying price: 72 - 72.55 million VND/ounce; Selling price: 75.15 - 75.45 million VND/ounce (depending on the business). Notably, some businesses did not display specific prices on their electronic boards as required, only quoting prices when customers inquired, and even then, the prices were inconsistent.

Ms. Nguyen Thi Huong Tra, a customer, said: “The price of gold varies from shop to shop, with differences of 80,000-200,000 VND per tael. The selling price at some shops is also inconsistent; when I inquired about buying, they quoted 7.6 million VND per tael, but for purchases of 3-5 taels, the price was 75.5 million VND per tael. Bargaining brought the price down to 7.5 million VND per tael. Therefore, when I need to buy gold, I check prices at various places and finally go to my usual shop, even though the price difference is nearly 100,000 VND per tael.”

According to reports, due to the unstoppable increase in the price of gold bars, reaching new highs and going against the downward trend of world gold prices, while the price of gold rings is approaching world gold prices, those buying for investment and asset accumulation are choosing gold rings.

"The price of gold bars has skyrocketed, rising both sharply and rapidly, causing people to worry about the risks. Therefore, most people are now shifting towards buying gold rings for storage and investment," said the owner of a gold shop.

According to the shop owner, a month ago, when there was a large difference between the price of gold bars and gold rings, with gold bars being 12-13 million VND higher than the world gold price, people tended to rush to sell their gold bars and invest in gold rings.

However, currently, even though the price of gold bars has surpassed its peak, climbing to a new high of 88 million VND/ounce, 13 million VND/ounce higher than gold rings and 17 million VND/ounce higher than world gold prices, very few people are selling gold bars.

The reason is that people believe that gold bars, being a national brand, have their own value, especially after five bidding sessions where the price of gold bars not only failed to cool down but also skyrocketed.

According to surveys at gold shops, the demand for gold in Nghe An province is currently higher than the same period in 2023, estimated at around 15-20% compared to this time last year. "Although there aren't long queues to buy gold, and gold businesses haven't yet reached the point where they have to limit the number of customers like in Hanoi or Ho Chi Minh City, the number of customers buying gold has clearly increased recently," said the owner of a gold shop on Le Loi Street in Vinh City.

According to the World Gold Council's report on gold demand trends in the first quarter of 2024, Vietnam recorded a 12% increase in demand for gold bars and coins for investment, with total consumer demand increasing by 6% compared to the same period last year.

According to experts, the depreciation of the domestic currency is the main reason for the increased demand for gold. In addition, geopolitical instability is also contributing to the flow of money into gold.

Another factor contributing to gold's increasing appeal is the lack of attractive investment channels at present. Many asset classes, including stocks, real estate, and cryptocurrencies, are considered to be in a "bubble." This fuels demand for gold as a safe store of value and attracts investors.