Still queuing to buy gold on the day of Thanh Tai?
Despite the difficult economy, many people this year are only buying one or a few gold bars for good luck. Hundreds of people flocked to the big gold shops on Tran Nhan Tong Street, Cau Giay, waiting for the stores to open on the morning of February 19. However, this year there was no scene of people squeezing and waiting for hours to buy gold like in previous years. Many gold shops in Hanoi have even prepared seats for customers.
At peak hours, around 10 a.m., people only had to wait about 30 minutes in the busiest gold shop on Tran Nhan Tong Street (Hai Ba Trung, Hanoi) to make their purchase. Even at lunchtime, people could buy gold immediately without having to wait.
Ms. Nguyen Tu from Long Bien, Hanoi, who was waiting to get her number and buy 2 gold bars, said: “Last year, I bought 1 gold bar on the day of Thanh Tai. I kept it until this year and made a profit of over 1 million VND/tael. I considered it lucky, so this year I bought 2 gold bars. The price is high, but I’m not worried because I bought a small amount.”
At the end of the morning trading session on February 19, Saigon Jewelry Company (SJC) listed the buying and selling price of SJC gold at 74.5 – 77.52 million VND/tael, a decrease of 900,000 VND/tael in both directions compared to the early morning. In the afternoon trading session on the same day, the price of SJC gold increased to 75 – 78 million VND/tael for buying and selling.
Mr. Nguyen Long from Hoang Mai, Hanoi, chose lunchtime to go buy gold on Tran Nhan Tong Street and shared: “During lunchtime, there are very few customers, so I bought 9 gold bars without worrying about price fluctuations because I bought them as savings for my child.”
In addition to the large number of buyers, many people chose to sell their gold for profit. As he was stacking his money into a bag, Mr. Nguyen Minh (in Dong Da, Hanoi) said: “I just sold 13 tael of plain round gold rings and earned over 1 billion VND. The price this year did not change much, so the profit was not much. At the end of 2023, I bought them for just over 60 million VND/tael and now I’m selling them without making much profit.”
Some gold trading companies also acknowledged a decrease in purchasing power compared to previous years due to the difficult economy and high gold prices. Some estimated that purchasing power decreased by about 30-40% compared to previous years and they also prepared fewer goods. A representative of Bao Tin Minh Chau Company said that purchasing power on the day of Thanh Tai this year was not as good as last year because people started buying early.
Mr. Nguyen The Hung, Secretary General of the Vietnam Gold Business Association, said that gold is no longer attractive to large investors in gold businesses. Gold buyers are only small individual investors and people who buy gold for savings. Purchasing power is weak this year and gold shops are only counting on the day of Thanh Tai to sell their gold.
According to Mr. Hung, even though purchasing power is weak, many stores nationwide have reported a high volume of gold sales on that day, especially gold rings. “Currently, the large difference between domestic and international gold prices makes gold investment a risky channel. This year is difficult, so people only buy a small amount, even half a tael, for good luck,” Mr. Hung said.
HCMC: People leisurely buy gold
On February 19 (Lunar January 10), Ho Chi Minh City residents began visiting gold shops to consult and buy gold on the day of Thanh Tai. At the PNJ store on Hai Ba Trung Street (District 1), the staff were waiting at the door ready to advise customers. Choosing 2 pieces of lucky gold weighing 0.5 tael worth nearly 6.5 million VND, Ms. Han Nguyen (35 years old, living in Thu Duc City) said: “This year, there is no need to line up and wait to buy the gold that I want. Although I know that gold prices are higher on this day, I’m not worried because I primarily buy gold for good luck.”
The Mi Hong gold shop (Binh Thanh District) also became busier at lunchtime. Among them, the jewelry gold counter had the highest number of transactions.
Meanwhile, many gold shops on the gold and silver street in District 5 and the gold trading area at Chiec Market (District 11) only had a few customers passing by to check prices and buy a few taels of gold, not as many as before.
According to many economic experts, due to the current difficult economy, purchasing power and the ability to pay by people are limited, so the number of customers buying gold on the day of Thanh Tai is lower than in previous years. Independent gold expert Phan Dung Khanh believes that people should not hoard a lot of gold on this day, but only buy a small amount with the belief in good luck.
The more you buy, the more you lose
Economic expert Dinh Trong Thinh believes that the trend of buying gold on the day of Thanh Tai appeared more than 10 years ago. The tradition of buying gold on the day of Thanh Tai originated from Chinese culture, but even in China, there is no tradition of buying gold for luck. When the economy is relatively good, businesses and gold shops issue messages calling on people to buy gold for good luck at the beginning of the year, causing gold prices to soar, disrupting the market.
“Buying gold for luck only requires a small amount to be lucky. If you rush to buy gold, you will end up buying at higher prices and selling at lower prices, benefiting the businesses but causing losses for buyers on the day of Thanh Tai due to the large difference between buying and selling prices. People should not rely too much on the media of gold businesses to create trends and benefits,” Mr. Thinh recommended.
According to Mr. Thinh, the large difference between buying and selling prices brings profit to businesses, double profit actually.
