Purchasing a gold ring worth nearly 1 billion VND
On the morning of February 15, gold trading businesses resumed operations after the Tet Giap Thin holiday. Although it wasn’t yet the Day of God of Wealth (10th day of the Lunar New Year), many people went to buy gold for the new year. At Tran Nhan Tong Street, Hai Ba Trung, Hanoi, people lined up to wait for their turn to buy. Many stores were overloaded, and customers had to wait for 30 minutes before they could make their purchase. The opening day price of gold dropped significantly, with SJC gold decreasing by 1.2 – 1.4 million VND/tael compared to before the Tet holiday.
Saigon Precious Metals and Gems Company bought at 75.2 – 75.4 million VND/tael and sold at 77.5 – 77.7 million VND/tael. Meanwhile, the price of 4-nines gold rings became more expensive, despite a slight decrease of around 300,000 – 400,000 VND per tael. Saigon Precious Metals and Gems Company bought at 63.1 million VND and sold at 64.3 – 64.4 million VND/tael; Bao Tin Minh Chau Company bought at 64.6 million VND and sold at 65.7 million VND/tael; and Doji Group bought at 64 million VND and sold at 65 million VND/tael…
Many people buy gold on February 15th. Photo: Duy Pham
According to new regulations, customers who come to buy and sell gold must prepare their new national identification card in order to conduct transactions. As it got closer to noon and the afternoon, people had to wait for an hour before they could enter the store to make their transactions. In addition to customers who purchase from half a tael to a few taels of gold for good luck in the new year, many others buy dozens of gold bars for investment purposes.
Starting from March 2023, gold rings have been trading around 56 – 57 million VND/tael, lasting throughout this time. In November, the price of gold rings continuously increased, surpassing 59 million VND/tael, surpassing 60 million VND/tael and approaching the 63 million VND/tael mark on December 28. At the beginning of 2024, the price of gold rings skyrocketed to 66 million VND/tael and has been maintained above 65 million VND/tael ever since.
Mr. Nguyen Phuc (Ba Dinh, Hanoi) spent over 800 million VND to buy more than 10 gold bars and shared: “In the past, I bought SJC gold bars, but after the gold price became volatile and the Prime Minister instructed the State Bank to intervene when the price fluctuated, I sold all my gold bars and bought gold rings instead. In the new year, I saw the price drop, so I decided to buy and hope that the price will increase to over 70 million VND/tael so I can sell them.”
Also buying 5 gold rings worth over 300 million VND, Ms. Minh Hang (Dong Da, Hanoi) said, “In 2023, the price of gold rings increased by 20% while the price of gold bars only increased by 15%, so I decided to invest in gold rings.”
Although only buying one tael of gold for good luck, Ms. Minh Phuong (Ha Dong, Hanoi) said that every year, she always buys at the beginning of the new year regardless of whether prices are rising or falling, because she is afraid of the crowds on the Day of the God of Wealth.
Why do people choose gold rings?
Currently, the price of gold rings is high. All stores have various sizes (of gold rings) ranging from half a tael to 10 taels, suitable for many people to choose for collecting and investing. Compared to the beginning of 2023, gold rings have increased by more than 10 million VND/tael.
Mr. Huynh Trung Khanh, an expert from the World Gold Council, believes that not only SJC gold bars but also the demand for holding gold rings among the public is high, and the current supply is still insufficient because businesses are not allowed to import gold for jewelry production. In addition, the crackdown on illegal gold trading networks by authorities has led to a scarcity of raw gold supply in the market. These factors combined have caused a sharp increase in buying and selling prices of gold rings.
Mr. Nguyen The Hung – Vietnam Gold Business Association – said that people tend to invest in and hold more gold rings than SJC gold bars, even though the price of SJC gold has decreased. However, compared to the world gold price, SJC gold is still more expensive by 15 million VND/tael. Meanwhile, the price of gold rings is only slightly higher than the world gold price by 1-2 million VND/tael and closely follows the upward trend of the world gold price.
Mr. Hung added that at this time, when the world gold price depends on many political and economic factors with significant fluctuations, investors should be cautious and selective in their investments. With plain round rings and gold jewelry, investors should choose reputable sources to ensure quality and price.
