Gold price goes crazy, reaches all-time high of 78.50 million/tael: Abnormal

Gold prices surged to an all-time high of 78.50 million VND/ounce.

After major "storms," the gold market has not only remained hot but has also entered a "tsunami." Following a week of瘋狂 increases, on December 25th, the price of SJC gold shocked everyone again by rising by 1.6 million VND/ounce to an all-time high of 78.50 million VND/ounce.

Specifically, during the morning trading session, the price of SJC gold increased by 500,000 to 800,000 VND per tael. By the afternoon, the upward trend was consolidated, and compared to the end of last week, the price of SJC gold increased by another 1.6 million VND per tael.

The highest price on the market is currently offered by Doji Group. At Doji Group, the price of SJC gold has been adjusted upwards by 1.6 million VND/ounce for both buying and selling, reaching 77.30 million VND/ounce – 78.50 million VND/ounce. The difference between the selling and buying price at Doji is quite high, at 1.2 million VND/ounce.

Gold prices surge to an all-time high of 7,850 million (unusual figure 1). — Rising by 1.6 million VND/ounce and reaching an all-time high of 78.50 million VND/ounce, 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/ounce - 78.30 million VND/ounce, an increase of 1.4 million VND/ounce compared to the end of last week.

The price of SJC gold at Saigon Jewelry Company (SJC) is trading at: 77.40 million VND/ounce - 78.40 million VND/ounce, an increase of 1.5 million VND/ounce compared to the end of last week.

At Bao Tin Minh Chau Gold, Silver and Gemstone Company, SJC gold is trading at 77.40 million VND/ounce - 78.30 million VND/ounce, an increase of 1.5 million VND/ounce for the buying price and an increase of 1.4 million VND/ounce for the selling price.

Meanwhile, the price of non-SJC gold only increased by a few tens of thousands of dong per tael compared to this morning. The price of Thang Long gold at Bao Tin Minh Chau is currently trading at: 62.57 million dong/tael – 63.52 million dong/tael. PNJ Company lists the price of PNJ gold at: 62 million dong/tael – 63.15 million dong/tael.

According to observations by a reporter from the Newspaper and Public Opinion, despite the sharp increase in SJC gold prices, the scene of people queuing to trade gold on Tran Nhan Tong Street in Hanoi , known as the "gold street," is no longer as crowded as before. On the contrary, some people even want to sell their gold.

Speaking to a reporter from the Newspaper and Public Opinion magazine, Mr. Van Tung (Hoang Mai, Hanoi) said: “We haven’t planned to use cash yet, but seeing the price of gold rise unreasonably high, I want to take profits because the price of gold may soon fall again.”

Anomalies due to supply constraints

Notably, the price of SJC gold surged dramatically despite the global market being closed for the Christmas holiday. Last weekend, the world gold price closed at $2,069 per ounce. At this world gold price, the converted price of SJC gold reached approximately 61.68 million VND per tael.

Thus, on the afternoon of December 25th, the price of SJC gold was 16.82 million VND/ounce higher than the world gold price. This is the highest level in 2023. Previously, in 2022, the highest difference in history between the two markets reached nearly 20 million VND/ounce.

Gold prices surged to an all-time high of 7,850 million (unusual figure 2). — Gold prices are skyrocketing due to limited supply. Photo: Hoang Tu

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

Speaking with a reporter from the Newspaper and Public Opinion, Mr. Huynh Trung Khanh, Vice President of the Vietnam Gold Business Association (VGTA) and advisor to the World Gold Council in Vietnam, commented that the price of SJC gold fluctuates not according to world prices but due to domestic supply and demand.

"Currently, it's inexplicable why. Many people think the price of gold will go up further, so they buy in anticipation. 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 price of gold is rising unusually," commented Mr. Huynh Trung Khanh.

Mr. Huynh Trung Khanh explained in detail that the demand wasn't actually very high, only about 100 to 200 taels, but the problem was that nobody was selling. There was no supply.

"SJC gold is now only circulating domestically. As far as I know, the government hasn't allowed the production of even a single ounce more in the past 10 years. Nobody wants to sell, so the company has to offer a high price to encourage people to sell, but they still won't sell, hence the high price," commented Mr. Huynh Trung Khanh.

According to Mr. Khanh, SJC gold is a national brand. Although it bears the SJC brand, SJC Company is not allowed to mint more gold without the approval of the State Bank of Vietnam. If any gold bar is damaged, SJC will repair or replace it on a one-for-one basis.

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