Continuously Closing Profits in SJC Gold
Since the end of last weekend, when the price of SJC gold nuggets soared to 81 million VND/ti, many gold shops have been bustling with customers closing profits. On March 4, at a gold shop on Tran Nhan Tong Street (Hai Ba Trung District, Hanoi), many customers took the opportunity to close profits on SJC gold nuggets.
Customers queueing on March 4 at a gold shop on Tran Nhan Tong Street (photo: N.M).
By the end of the morning of March 4, Saigon Gold, Silver and Gemstone Company listed buying and selling prices of 78.7 – 80.7 million VND/ti, an increase of 400,000 VND/ti.
Selling 2 taels of SJC gold for 156 million VND, Mr. Minh Quan (Dong Da District, Hanoi) said that he bought this gold more than 2 months ago at a price of 74 million VND/ti. Seeing the high price, he sold it and made a profit of nearly 4 million VND/ti.
Also closing profits were 5 gold bars bought on the day of the Wealth Deity two weeks ago at a price of 78 million VND/ti. Ms. Bich Thu (Hai Ba Trung District, Hanoi) made a profit of nearly 5 million VND. “When I bought at that price, I thought I had to keep it because the price was already too high, but unexpectedly, the gold price rose to over 80 million VND/ti. Apart from the difference between buying and selling, I still made a profit in just over 10 days. Everyone said that after the Wealth Deity day, the gold price would decrease, but it didn’t happen as predicted,” Ms. Thu said.
The representative of the gold shop on Tran Nhan Tong Street said that the sales volume increased by 55% compared to normal days.
The SJC gold price rose despite many sellers closing profits while the ring gold price remained high at a record level of nearly 68 million VND/ti. The domestic gold price rose despite the world gold price standing still at 2,083 USD/ounce today.
Currently, the SJC gold price is about 18 million VND/ti higher than the world gold price. The ring gold is also about 5 million VND per ti higher than the world gold.
Will the ring gold price increase and approach the SJC gold nugget price?
Right before Tet, the round gold price has continuously anchored at a high level, fluctuating around 65 – 66 million VND/ti. On the Wealth Deity day just passed, the ring gold continued to be a commodity that many people chose to buy.
Sellers closing more profits than buyers (photo: N.M).
The increasing purchasing power has made the source of ring gold increasingly scarce, pushing the selling price of this precious metal to a record level. In the last days of February and the beginning of March, the SJC ring gold price continuously increased, even surpassing the 66.5 million VND mark, the highest level ever.
From the beginning of the year until now, the ring gold price has increased by more than 2 million VND/ti. The gap between the domestic ring gold price and the world ring gold price has also widened, from 2 – 3 million VND/ti to nearly 5 – 6 million VND/ti.
Many people have questions about the fluctuation of the ring gold price as well as the scarcity of this commodity in recent days. In a group of gold investors, many opinions believe that gold trading businesses are “manipulating prices” to push the ring gold price up.
According to economic expert Nguyen Tri Hieu, the issue of “price manipulation” always exists in the gold market. The ring gold price increases unusually, and functional agencies need to closely monitor to promptly prevent violations.
He said that the ring gold price increased in the context of the SJC gold price and the world gold price increase. In addition, another factor that contributes significantly to the upward trend of the ring gold price is the increase in raw material prices and the insufficient supply of raw materials.
“If the problem of raw material supply for ring gold production is not resolved, one day, the ring gold price will gradually increase like the SJC gold nugget,” Mr. Hieu said.
The shortage of raw material supply for jewelry and handicraft gold production has been warned by the Gold Business Association since the second half of 2023.
Since Decree 24 was issued, businesses have not been licensed to import raw gold, making the gold purchase on the market the only source for businesses to produce jewelry gold. Many businesses have to use imported gold of unknown origin to make gold jewelry.
However, after the Ministry of Public Security tightened smuggling cases and stricter regulations on the origin of gold, many businesses are concerned about the legal risks when purchasing raw gold. This gradually narrows the supply of raw gold, leading to a shortage of ring gold at certain times. In addition, the fact that many people have switched their investments from SJC gold nuggets to ring gold has also contributed to pushing the ring gold price up.
In February, the market continuously awaited changes from Decree 24 on the management of gold nugget business after a series of directives from the Government. According to many experts, the SJC gold nugget price will fluctuate strongly after Decree 24 is revised, and it may even decrease by a few million VND/ti if the supply of gold nuggets is supplemented. That is why many people choose to invest in ring gold with the mentality of “guaranteed”.
Other investment channels such as savings, real estate… have not really picked up in the early year, which is also the reason why investment money has poured into the gold market. Among them, ring gold with more affordable prices, suitable for the financial conditions of many people, has become one of the attractive investment options in recent times.
