Why did the price of gold rings change direction, surpassing the price of gold bars?

Being in a "lower position" when it is often much cheaper than gold bars, but recently, the price of gold rings suddenly increased continuously and is the most expensive on the market today.

Recently, the price of gold rings has been continuously increasing, at many times surpassing the price of SJC gold bars. As of the end of July 12, the highest price of gold bars was 76.98 million VND/tael (selling price) while the price of gold rings was 77.15 million VND/tael. It is worth noting that in the past, the price of gold rings was always "under the control" of the price of SJC gold bars, at times being lower by up to ten million VND/tael.

Analyzing the cause of this phenomenon, experts said that the price of gold rings is being affected by the sharp increase in world prices, in addition to psychological factors, consumer expectations and the impact of domestic policies.

According to economic expert, Associate Professor, Dr. Dinh Trong Thinh, domestic gold prices are fluctuating in line with world gold prices. However, due to the stabilization of the State Bank, the price of gold bars is currently unchanged, while the price of gold rings will decrease if the world price goes down and increase if the world price goes up. Over the past decade (2014 - 2023), the price of gold rings has always been stable and has followed the world gold price more closely than SJC gold.

With positive signals from the US economy, the world gold price in the recent session increased to over 2,400 USD/ounce. This created an impact, pushing the domestic gold ring price to over 77 million VND/tael. "While the price of SJC gold bars is being regulated by the State Bank, kept at 76.98 million VND/tael, it is understandable that the price of gold rings exceeds the price of SJC gold bars," said Mr. Thinh.

However, Mr. Thinh commented that, in the past, the State Bank has imported more gold than the expected demand of the domestic market to produce SJC gold bars. Therefore, when the world gold price increases, the reserves are still there, so the price of gold bars does not increase. However, if the world gold price continues to increase sharply for a long time, the price of SJC gold bars will most likely also be adjusted in an upward direction. At that time, the gap between the price of gold rings and gold bars will likely change.

The price of gold rings has increased continuously, currently higher than the price of SJC gold bars.

Sharing the same view, Mr. Nguyen The Hung, Vice President of Vietnam Gold Business Association analyzed that domestic gold ring prices fluctuate according to world prices. “After the US announced quite optimistic CPI figures, the price of gold increased to over 2,400 USD/ounce. The world gold price increased, so the price of gold rings increased accordingly. Meanwhile, SJC gold bars were fixed at 76.98 million VND/tael due to price stabilization. Therefore, the price of gold rings increased higher than the price of gold bars," he said.

The world gold price is still on an upward trend. According to international experts, in the fourth quarter of 2024, the gold price may increase beyond 2,500 USD/ounce. According to Mr. Hung, if the domestic exchange rate remains stable, the domestic gold ring price will continue to increase.

Mr. Dinh Nho Bang, Vice President of the Gold Association, said that the continuous increase in the price of gold rings in recent days is normal, because the world gold price is increasing. " The most important issue that the Government aims for is to bring the price of SJC gold equivalent to the international gold price. Currently, the difference between domestic and international gold prices is about 5 million/tael, much lower than the previous difference of nearly 20 million ", Mr. Bang said.

Economist, Dr. Nguyen Minh Phong, said that the recent increase in gold ring prices shows that the gold market is normalizing again.

“ In principle, gold bars and gold rings have the same value. Up to now, gold bars are often more expensive than gold rings because consumers worship SJC gold bars too much and rush to buy them. Therefore, when gold returns to the 9999 standard as measurement and the State Bank steps in to stabilize the market, gold bars will return to their true value and consumers will buy more of what is easier to buy and easier to check, ” said Mr. Phong.

According to economic expert Dr. Nguyen Tri Hieu, at present, SJC gold bars are very difficult to buy, even when the State Bank sells gold through auctions and recently sells gold through 4 commercial banks, starting with direct sales and now online sales. " The amount of gold sold is very limited, so people cannot buy gold bars, so they have switched to buying gold rings ," Mr. Hieu analyzed.

However, Mr. Hieu stated that the current gold market is like a balloon, squeezing one place will cause it to bulge out to another. “ If the State Bank does not satisfy buyers of gold bars, they will switch to buying gold rings to store. This is what causes gold rings to increase as they have in recent days and will continue to increase if there is no proper management .”

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