Midday October 16: Ring Gold Prices Skyrocket, Hitting 154 Million VND per Tael

By midday on October 16th, domestic gold prices continued to surge just hours after the market opened.

Specifically, gold bars at DOJI, Bao Tin Minh Chau, SJC Company, and PNJ were all listed between 147.1 – 149.1 million VND per tael.

As for gold rings, Bao Tin Minh Chau adjusted their prices to 151 – 154 million VND per tael. Bao Tin Manh Hai also increased the price of their pressed gold rings to 150.5 – 150.8 million VND per tael.

Meanwhile, SJC Company listed prices at 145.9 – 148.1 million VND per tael, while DOJI and PNJ traded around 146.5 – 149 million VND per tael and 146 – 149 million VND per tael, respectively.

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Opening this morning’s trading session, domestic gold prices maintained their upward trend. At Bao Tin Manh Hai, the price of Kim Gia Bao pressed gold rings was listed at 145 – 147.8 million VND per tael, a 400,000 VND increase compared to yesterday’s close.

Mi Hong gold shop in Ho Chi Minh City also adjusted their gold ring prices up by 200,000 VND per tael, to 146 – 147 million VND per tael.

Meanwhile, other major brands maintained their listed prices: Bao Tin Minh Chau at 147.6 – 150.6 million VND per tael, PNJ and DOJI both at 144.2 – 147.2 million VND per tael, and SJC Company at 143.7 – 145.9 million VND per tael.

Gold bars at gold trading companies are also commonly listed around 146 – 148 million VND per tael.

In the global market, spot gold reached $4,220 per ounce, maintaining its historic high. The gold market continues to demonstrate strong fundamentals supporting prices near the $4,200 per ounce record. However, what the market lacks is sellers, as many investors see no reason to take profits while the upward momentum remains strong.

In a recent interview with Kitco News, John Merrill, founder, chairman, and chief investment officer of Tanglewood Total Wealth Management, stated that gold currently accounts for about 12% of his total portfolio, higher than the target allocation of 10%.

Merrill noted he has been bullish on gold since 2023, initially allocating only 5-6% of his portfolio. He has rebalanced his gold holdings several times over the past two years due to the precious metal’s unprecedented price surge. However, he sees no reason to take profits in the near term.

“We will continue to hold gold,” he said. “Typically, we rebalance at year-end, at which point we’ll reassess gold, regardless of whether prices rise or fall.”

Even if he were to take some profits, Merrill believes fundamental changes in the global economy will keep him maintaining a core gold position.

“We will always own gold. I don’t know what that percentage will be 20 years from now, but we will definitely still hold gold, as nothing can replace it,” he said.

According to Merrill, rising global public debt is the biggest driver of gold demand. Investors are seeking to protect their assets as fiat currencies worldwide lose value. Simultaneously, high debt levels are exposing long-term government bonds, traditionally considered safe-haven assets, to increased risks.

“We began to realize this in 2023, that gold has new drivers. Previously, we didn’t view gold as an inflation hedge, as it had a poor historical track record in that role, but gold is a crisis hedge. Now, it has evolved further, becoming a currency hedge,” he explained.

Merrill believes this role for gold began with the 2008 financial crisis, when the U.S. Federal Reserve cut interest rates to zero and launched quantitative easing (QE) programs.

He noted that government stimulus spending during the 2020 pandemic further exacerbated public debt issues, and recession risks will continue to worsen the health of the global financial system.

“Gold has become the alternative, as no single currency is large enough, stable enough, or free enough to serve as the reserve currency,” Merrill said.

He also pointed out that deglobalization is making it increasingly difficult for nations to collaborate on building a new reserve currency system. Although gold prices are currently at record highs, up nearly 60% year-to-date and appearing overbought, Merrill doesn’t believe this will hinder investment demand. He added that while gold may seem expensive relative to major currencies, it remains significantly cheaper compared to the stock market.