Buying gold is a losing proposition; shops are deserted despite the approaching Lunar New Year.

Gold prices fluctuate unpredictably, and shops are deserted as Tet (Lunar New Year) approaches.

According to observations by reporters from Lao Dong newspaper on January 16th at gold shops in Hanoi , many shops were deserted, with few customers. Areas specializing in gold trading, such as Tran Nhan Tong street (Hai Ba Trung district), were also not crowded.

The image was taken at a gold shop on Tran Nhan Tong Street, Hai Ba Trung District. Photo: Den Phu. — The image was taken at a jewelry store on Tran Nhan Tong Street, Hai Ba Trung District, Hanoi. Photo: Den Phu.

Ms. Ngoc Hien, an employee at a gold shop on Tran Nhan Tong Street (Hai Ba Trung District, Hanoi), said: "Gold prices are fluctuating a lot, so fewer customers are coming to buy for investment. Because it's the end of the year, many people don't want to invest, so the shop is quieter."

Ms. Nguyen Thu Giang (21 years old - Gia Lam district, Hanoi), who came to buy gold for savings, shared: "Last year, I saved up a small amount of money and wanted to buy gold to give to my mother. After researching recently, I noticed that gold prices have been fluctuating erratically, so I'm considering my options. I hope the price of gold will stabilize in the near future."

A survey of gold shops in Cau Giay district, Hanoi, clearly shows a lack of customers. Huy Long (27 years old, from Hai Duong), a customer there, said: "I see that gold prices have been very volatile and unpredictable this year. I'm afraid that with the current situation, gold prices will continue to rise in the new year, so I came to buy some to accumulate assets."

Observations taken at a gold shop on Cau Giay Street, Cau Giay District. Photo: Den Phu

"The difference between buying and selling prices is a concern for investors, so there aren't many customers at the store during this period. Many people come to buy gold as gifts or for weddings, not many customers come to buy for investment," shared Mr. Ngoc Hai, a sales employee at a gold shop in Cau Giay district.

Domestic gold prices

As of 1:40 PM on January 16, 2024, the world gold price listed on Kitco was at $2,048 per ounce.

DOJI Group listed the buying price of SJC gold at 74 million VND/ounce and the selling price at 76.5 million VND/ounce. The difference between the buying and selling price of gold at DOJI is 2.5 million VND/ounce.

Meanwhile, Saigon Jewelry Company (SJC) listed the buying price of gold at 74 million VND/ounce; the selling price is 76.5 million VND/ounce. The difference between the buying and selling price of gold at Saigon Jewelry Company (SJC) is 2.5 million VND/ounce.

The current difference between the buying and selling price of SJC gold is around 2.5 million VND per tael. With this difference, most investors will suffer losses if they invest in the short term.

The difference between domestic and international gold prices is very large. At the time of this survey, the international gold price listed on Kitco.com was $2,048 per ounce. This difference amounts to approximately 26 million VND per tael (approximately 37.5 grams).