Exciting buying and selling of all kinds
Since the beginning of the year, both SJC gold bars and gold rings have continuously increased in price. In just 5 days, the price of gold bars doubled to 81 million dong per tael. Meanwhile, the price of gold rings continues to increase and sets new records every day. Currently, the price of gold rings is close to 69 million dong per tael.
These days, at large brand gold shops, people are bustling with buying and selling. Many people buy regardless of the high prices, while many others sell to cash in on the profits.
In addition to gold rings and gold bars, there is a new type of gold called “cuc” (also known as raw gold). Surprisingly, people also accept this type of gold. Many believe that “since it’s gold, it will always increase in value”.
“Cuc” gold weighing 15 taels is priced at 1 billion dong
On Hang Bac street (Hoan Kiem district, Hanoi), small gold shops that seemed forgotten are now starting to come alive. In a small shop with an area of only about 10m2, products such as rings, necklaces, earrings, etc. are displayed in glass cabinets. There is no room left when 5 customers enter the shop. At the end of the shop is a fiery red gold smelting furnace.
When customers inquire about buying “cuc” gold, the shop owner says that “this type of gold is much cheaper than SJC gold bars and gold rings, priced at 66.5 – 66.7 million dong per tael for buying and selling”.
Appearently, buying and selling “cuc” gold here has become familiar. One customer said, “The gold price here is cheaper than SJC gold bars and gold rings, but the price is still increasing,” then transferred over 1 billion dong to the shop owner’s account and received 15 taels of gold that were just weighed.
At the end of March 6, Saigon Jewelry and Precious Stones Company listed SJC gold at 79 – 81 million dong per tael for buying and selling, an increase of 200,000 dong per tael compared to early morning. At Bao Tin Minh Chau, each tael of smooth gold rings is listed at 67.4 – 68.6 million dong for buying and selling. This is the highest price ever.
Customers buying this gold do not receive a receipt.
Investors need to stay calm
According to experts, in addition to the continuous increase in the domestic gold price in recent times, the increase in the world gold price is also due to market supply and demand, economic developments, and psychological factors driving the rapid increase in gold prices. At the same time, with reduced savings interest rates and other investment channels not showing much potential, investors are hunting for gold, buying to preserve capital, putting pressure on gold prices. In addition, unresolved inflation is causing people who have little gold to buy more, and those who don’t have gold to actively buy and accumulate.
Nguyen Tri Hieu, a financial expert, believes that gold at this time is “shining” but it is not advisable to rush into investing in gold due to its unpredictable fluctuations. The domestic gold market is affected by the volatility of the global gold market. However, the price of gold is also influenced by other macroeconomic factors such as GDP, the consumer price index (CPI), and the real estate market.
Therefore, gold buyers need to monitor the hourly fluctuations of the gold market both globally and in Vietnam. In addition, individuals or businesses should not “put all their eggs in one basket” and allocate their funds wisely, preferably investing one-third of their money in gold. Especially, investors should not borrow money to buy gold.
When people are in a frenzy of gold, Pham Xuan Hoe, former Deputy Director of the Institute of Development Strategies of the State Bank of Vietnam, believes that the authorities must take action to prevent people from holding onto gold. “The key to mobilizing capital lies in people’s trust. When people realize that burying their capital in gold does not bring benefits like investing in the economy, they will limit gold purchases. What is more important is still the construction of a business environment that ensures investment and business activities are open, dynamic, stable, and sustainable, so that people can invest in production with peace of mind,” Hoe said.
