Gold price goes crazy, reaching an all-time high of 78.50 million/tael: Unusual

Climbed to an all-time high of VND78.50 million/tael

After the big “storms”, the gold market has not stopped heating up but has entered a “tsunami”. After a week of crazy increases, on December 25, the price of SJC gold caused another shock when it increased by 1.6 million VND/tael to an all-time high of 78.50 million VND/tael.

Specifically, in the morning trading session, the price of SJC gold increased from VND500,000/tael to VND800,000/tael. By the afternoon, the increase was consolidated, compared to the end of last week, the price of SJC gold increased by VND1.6 million/tael.

The highest price on the market belongs to Doji Group. At Doji Group, the price of SJC gold was adjusted up by 1.6 million VND/tael in both buying and selling directions to 77.30 million VND/tael - 78.50 million VND/tael. The difference between selling and buying prices at Doji is quite high, reaching 1.2 million VND/tael.

Gold price hits all-time high of 7850 million USD, unusual figure 1 — Increasing by 1.6 million VND/tael and climbing to an all-time high of 78.50 million VND/tael, the price of SJC gold is considered unusual. Photo: Hoang Tu

Phu Nhuan Jewelry Company – PNJ listed the price of SJC gold at: 77.30 million VND/tael – 78.30 million VND/tael, an increase of 1.4 million VND/tael compared to last weekend.

SJC gold price at Saigon Jewelry Company - SJC is traded at: 77.40 million VND/tael - 78.40 million VND/tael, an increase of 1.5 million VND/tael compared to the end of last week.

At Bao Tin Minh Chau Jewelry Company, SJC gold traded at 77.40 million VND/tael - 78.30 million VND/tael, an increase of 1.5 million VND/tael for buying and an increase of 1.4 million VND/tael for selling.

Meanwhile, the price of non-SJC gold only increased by a few tens of thousands of VND/tael compared to this morning. The price of Thang Long Dragon gold at Bao Tin Minh Chau is being traded at: 62.57 million VND/tael - 63.52 million VND/tael. PNJ Company listed the price of PNJ gold at: 62 million VND/tael - 63.15 million VND/tael.

According to observations by reporters from the Journalists and Public Opinion newspaper, although the price of SJC gold has increased sharply, on the “gold street” of Tran Nhan Tong in Hanoi, there is no scene of people lining up to trade gold like before. On the contrary, some people still want to sell.

Sharing with reporters of the Journalist and Public Opinion newspaper, Mr. Van Tung (Hoang Mai, Hanoi) said: "We have no plans to use cash, but when we saw the unreasonably high price of gold, I wanted to take profit because the price of gold could soon decrease again."

Abnormalities due to supply constraints

Notably, the price of SJC gold increased dramatically even though the world market was on Christmas break. Last weekend, the world gold price closed at 2,069 USD/ounce. At this world gold price, the converted price of SJC gold reached about 61.68 million VND/tael.

Thus, on the afternoon of December 25, the price of SJC gold was 16.82 million VND/tael more expensive than the world gold price. This is the highest level in 2023. Previously, in 2022, the highest historical difference between the two markets was nearly 20 million VND/tael.

Gold price hits all-time high of 7850 million USD, unusual figure 2 — Gold prices skyrocket due to limited supply. Photo: Hoang Tu

According to Dr. Nguyen Tri Hieu, a finance and banking expert, the price of SJC gold should only be about 5 million VND/tael higher than the world gold price. If this difference is much higher than 5 million, the risk for gold buyers is very high.

Speaking to reporters from the Journalists and Public Opinion newspaper, Mr. Huynh Trung Khanh, Vice President of the Vietnam Gold Trading Association (VGTA), advisor to the World Gold Council in Vietnam, commented that SJC prices increase and decrease not according to world prices but due to domestic supply and demand.

“Currently, it is unclear why. Many people think that the gold price will continue to increase, so they buy in advance. The gold market is in a situation where many people are buying but no one is selling. There is demand but no supply, so the gold price is increasing abnormally,” commented Mr. Huynh Trung Khanh.

Mr. Huynh Trung Khanh analyzed specifically, in fact the demand is not too high, only about 100 to 200 taels but the problem lies in the fact that no one sells. There is no supply.

“SJC gold is now only circulated domestically. As far as I know, the State has not allowed any more production for the past 10 years. No one wants to sell, so the company has to offer a high price to encourage people to sell, but people still do not sell, so the price is so high,” commented Mr. Huynh Trung Khanh.

According to Mr. Khanh, SJC gold is a national brand. Although it carries the SJC brand, SJC Company is not allowed to stamp more gold without the consent of the State Bank. If any gold piece is damaged, SJC will repair or replace it 1 for 1.

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