Gold ring prices have been on a remarkable upward trajectory over the past ten days, breaking new records daily and reaching unprecedented highs. Once significantly cheaper than gold bars, gold ring prices are now only 50,000 VND/tael away, peaking at 83.45 million VND/tael (selling price).
Analysts attribute this surge to the sharp rise in global gold prices, which have repeatedly hit all-time highs, surpassing 2,600 USD/ounce after the Fed’s rate cut. This development has had a direct impact on domestic gold prices. However, thanks to the State Bank’s stabilization efforts, gold bar prices have remained relatively stable, with only gold ring prices experiencing continuous fluctuations.
Another factor is the strong demand from buyers coupled with limited supply. Gold expert Tran Duy Phuong commented, “Recent predictions of gold prices reaching 2,800 – 3,000 USD/ounce have reactivated gold purchases, especially gold rings. However, the scarcity of supply has driven up gold ring prices.”
Currently, many major gold companies have faced supply shortages for several months while demand has soared.
Soaring gold ring prices. (Photo: Minh Duc)
Are gold ring prices rising due to difficulties in purchasing gold bars?
Some believe that the challenges in acquiring gold bars have contributed to the escalating gold ring prices.
Gold bars are currently being sold directly by the State Bank through four banks and SJC to stabilize prices after a prolonged period of erratic increases. While the prices have stabilized, and the gap with global prices has narrowed significantly, many individuals report difficulties in purchasing gold bars, both through direct and online channels.
Buyers must navigate complex bank procedures and face limitations on purchase quantities and waiting periods. Meanwhile, direct purchases are possible only through SJC, with quantity restrictions, while other enterprises have long stopped selling gold bars. Those seeking to buy in bulk to avoid bureaucratic hassles have turned to the black market, paying significantly higher prices.
According to experts, this situation has “added fuel to the fire,” causing gold ring prices to soar. When individuals opt to hoard gold rings, demand surges, and the limited supply drives up prices.
Economist Dr. Nguyen Minh Phong asserted, “It is natural for individuals to turn to buying gold rings when the process of purchasing gold bars becomes cumbersome and frustrating.”
Therefore, Dr. Phong attributed the sudden spike in gold ring prices not only to the rise in global gold prices but also to the challenges in acquiring gold bars. He also suggested the possibility of gold ring speculation, further reducing supply and driving up prices.
Economist Dr. Nguyen Tri Hieu shared his perspective: “The State Bank is regulating the gold bar market, and it can be said that the market is relatively stable in terms of price. However, there is no supply in the market, while demand is exceptionally high. The domestic gold market resembles a balloon, with gold bars on one end and gold rings on the other. Squeezing one end will cause the other to expand. This is also a factor pushing gold ring prices higher, and they may continue to fluctuate significantly in the near future.”
Gold expert Tran Duy Phuong emphasized, “While the State Bank has successfully stabilized gold prices, whether individuals can purchase gold and the quantity they can acquire are different matters.”
According to Phuong, the fixed gold prices at the four banks and SJC do not reflect the actual situation of the gold market at this time.
“The free market gold prices are a more accurate reflection of the market’s real demand. Therefore, we should compare the gold ring prices (which are operating according to market rules) with the free market gold bar prices. At present, the free market gold bar selling price is around 87.5 million VND/tael, still about 4 million VND/tael higher than the gold ring price of 83.45 million VND/tael. This price better represents the actual demand,” Phuong analyzed.
However, the expert stressed that the primary driver of soaring domestic gold prices is the scarcity of supply. The State Bank has not yet allowed gold businesses to import gold materials, a situation that has persisted for over a decade.
Additionally, the police have cracked down on gold smuggling rings, further limiting the supply of gold materials in the market. Consequently, gold rings, once abundant, have been in short supply for several months.
Is Gold’s Rally Here to Stay?
The domestic gold price has been on a roll lately, with gold rings repeatedly breaking records. Will this scorching hot streak continue?
The Golden Opportunity: Unveiling the Latest SJC Gold Prices and Beyond
On the morning of September 25, the price of plain gold rings surged to a new peak, skyrocketing by 1 million VND per tael to 82.5 million VND per tael.
