Gold ring price hits 89 million VND/tael, equal to gold bar price for the first time

The price of gold rings this afternoon, October 23, climbed to a new peak when it reached 89 million VND/tael, the first time in history it was equal to the price of gold bars.

At 4:30 p.m. this afternoon, Doji listed the price of gold rings at 88 - 89 million VND/tael, a sharp increase of 700,000 VND/tael compared to this morning. This is the highest price in history.

At the same time, SJC listed the price of gold rings at 87 - 88.5 million VND, an increase of 900,000 VND/tael compared to the morning trading session.

While the price of gold rings is skyrocketing, the price of gold bars is still stable at 87 - 89 million VND/tael. Thus, this is the first time in history that the price of gold rings is equal to the price of gold bars.

The price of gold rings has recently caused surprise when every day they set a new record, the most expensive in history. Notably, the price of gold rings used to be lower than the price of gold bars by more than ten million VND/tael, but now the price of gold rings is equal to the price of gold bars and the risk is even higher.

Economist Nguyen Tri Hieu said that the recent sharp increase in gold ring prices is due to the impact of world prices and because gold bars are being controlled, the price is stable, while gold rings are "subjected" to fluctuations. In addition, the demand for gold by Vietnamese people is still very high because gold is considered an asset for storage and savings.

The price of gold rings has increased to 89 million VND/tael, equal to the price of gold bars. (Photo: Minh Duc).

The recent shortage of gold bars and gold rings may be due to the fact that many people are still holding onto gold and not selling it, waiting for the price to go up to sell. Meanwhile, the State Bank has not made any move to allow gold trading enterprises to import raw gold. This has been going on for more than 10 years. In addition, the police have dismantled many illegal gold rings, so the supply of raw gold on the market is very scarce.

" If the gold ring market continues to have a "fever", I think it is likely that the State Bank will have to intervene ," Mr. Hieu predicted.

To curb the price of gold rings, according to Mr. Hieu, the only way is to improve the supply. If the supply is abundant, the price will decrease. This requires careful calculation by the State Bank.

Mr. Nguyen Quang Huy - CEO of the Faculty of Finance and Banking, Nguyen Trai University, analyzed: Domestic gold ring prices have increased sharply recently, affected by both international factors and the domestic investment context.

Specifically, the situation in the Middle East, the risk of a large-scale war between Israel and neighboring countries, along with the prolonged Russia-Ukraine conflict and tensions on the Korean peninsula, have created global instability. This has prompted investors to seek gold as a safe haven, pushing world gold prices to an all-time high. This has put great pressure on domestic gold prices, including gold rings and gold bars.

In the domestic market, access to SJC gold bars is currently difficult, causing people to switch to buying gold rings, causing demand to increase sharply.

Specifically, the State Bank is currently selling gold bars directly through 4 banks and SJC Company to stabilize prices. As a result, the price has been stabilized, no longer having a "huge" difference compared to the world, but people find it much more difficult to buy than before.

Not only do buyers have to register in advance and meet complicated bank procedures, they also have to wait for many days and are limited in the amount they can buy. Meanwhile, if they buy directly, they can only buy from SJC Company with a limited quantity, while other businesses have long stopped selling gold bars because they are out of stock.

According to Mr. Huy, this situation has caused people to switch to buying gold rings, causing the supply to become increasingly scarce, pushing the price of gold rings up day by day. Many stores have also temporarily stopped selling gold rings and are only buying to increase supply.

Therefore, Mr. Huy believes that one way to reduce the "heat" of gold rings is to increase the supply of SJC gold bars in the market, making it easier for people to access. This will help balance supply and demand between types of gold, reducing pressure on the price of gold rings.

In addition, according to Mr. Huy, it is necessary to promote changes in the hoarding habits of Vietnamese people. Encourage people to switch from the habit of hoarding gold to the mindset of investing in production, business and startups. This not only promotes economic development but also helps to reallocate idle cash flow into areas with higher growth potential.

Source