Gold prices on the day of the God of Wealth last year (Qi Mao) increased more strongly than in previous years because world gold prices in the first days of 2023 soared, reaching the highest level in 9 months. The price of gold bars increased by 500 thousand VND/tael in just 2 trading sessions after the Lunar New Year after increasing by 1 million VND/tael in the week leading up to Tet.
Meanwhile, the price of gold rings and other Than Tai gold products increased faster, the difference between buying and selling prices was also several hundred thousand VND/tael larger than the difference in gold bars.
God of Wealth in the year of the Dragon: Will it increase sharply or decrease sharply?
Unlike every year, in the opening session of the new year, gold prices of all types fell quite sharply following the plunge in gold prices on the world market right during Vietnam’s Lunar New Year holiday.
The world gold price evaporated by 40-50 USD during the session on February 13 (early morning of February 14, Vietnam time) and fell deeply to 1,990 USD/ounce, equivalent to a decrease of about 1 million VND/tael. If converted to Vietnamese currency.
It can be seen that the decrease in world gold prices is quite strong. Meanwhile, the discount on SJC gold bars when opening businesses at the beginning of the new year of Giap Thin on February 15 is only about 500,000 VND/tael.
The slower rate of decrease caused the difference between the converted world gold price and the domestic SJC gold bar price by the end of February 15 to nearly 19 million VND/tael. This is a near record high difference and it can affect people’s decisions to buy and sell gold.
The price of gold rings and gold jewelry of brands decreased by more than one million VND/tael compared to the record high of 66 million VND/tael before Tet and fell to about 64.5 million VND/tael (sold). This price is about 4-5 million VND/tael higher than the converted world price.
By the end of the afternoon of February 15 (Vietnam time), the world gold price inched up to 1,995 USD/ounce, converted to Vietcombank’s USD price (24,610 VND/USD) with a price of 59.7 million VND/tael. including taxes and fees.
With world gold prices tending to recover after the plunge and demand for gold on the occasion of the God of Wealth holiday increasing sharply, domestic gold prices may increase in the upcoming sessions from February 16 to 19 (ie from the 7th). to the 10th lunar month).
On February 15, in Hanoi, many people took advantage of buying gold early when the price dropped. Many places in “gold streets” such as Tran Nhan Tong and Hai Ba Trung recorded queues of 20-30 minutes to buy gold.
However, the amount purchased is quite small, most people buy about 1-2 taels of gold, besides gold jewelry with dragon mascots. Most people buy gold for luck, not for investment or profit.
In fact, the price of gold rings has recently increased sharply, by more than 10 million VND/tael, since the beginning of 2023 and is currently much higher than the world price. Therefore, the demand for this product during this year’s God of Wealth holiday is forecast to not be large.
However, with the trend of demand being greater than supply, the price of gold rings during the God of Wealth holiday is still forecast to increase and could set a new record (over 66 million VND/tael) if the world gold price moves up in the next few days. . Currently, the domestic gold supply is still lacking because businesses are not allowed to import gold for jewelry.
Recently, the State Bank said it would take measures to stabilize the gold market. However, so far this agency has not taken any action. The authorities also broke up illegal gold trading lines, leading to a scarce supply of raw gold.
The price of SJC gold bars or gold rings, etc. is currently facing the risk of a sharp decrease if the gold management policy changes. The downside risk for SJC gold bars will be greater than that of gold rings due to the larger difference with world prices.