Last update 10/11/2010 02:43:36 PM (GMT+7)
Gold prices dancing, shops sell gold in dribs and drabs
VietNamNet Bridge – The gold market was burning yesterday with the price increasing in waves. People rushed to purchase gold, but shops only sold gold in dribs and drabs.
Gold prices fluctuating
In the afternoon of November 9, the gold shops on Tran Nhan Tong street in Hanoi were less crowded than in the morning of the same day. Explaining this, some people told VietNamNet’s reporter that many people purchased gold in the morning already, and they did not have to go to gold shops any more.At Bao Tin Minh Chau shop, only a limited volume of bar gold was seen on display. Those people, who wanted to purchase gold in big quantities, were told to come back the next day to get deliveries.
The gold prices in the afternoon saw slight decreases from the prices in the morning. However, VietNamNet’s reporter found out that the prices are still fluctuating.
At 4 pm, the price of Rong Thang Long brand gold of Bao Tin Minh Chau was quoted at 36.7-37.3 million dong per tael (purchasing and selling prices) (a tael is equal to 1.2 oz). At 5 pm, the purchasing price increased by 200,000 dong per tael to 36.9 million dong per tael, while the selling price dropped by 100,000 dong to 37.2 million dong.
Rong Thang Long brand gold’s closing prices were 36.9-37.45 million dong per tael (purchasing and selling prices) which meant that the purchasing price remained unchanged while the selling price increased by 250,000 dong per tael.
The prices SJC brand gold, sold by Phu Quy Company, also fluctuated. At 5 pm, the price of SJC brand gold was quoted at 37-37.5 million dong per tael, an increase of 100,000 dong per tael in purchasing price in comparison with the price in mid afternoon, and 300,000 dong in selling price.
Ha Van, a gold investor told VietNamNet that the domestic gold price is 3-4 million dong per tael higher than the world price. He said that this is the most serious price increase in the history of Vietnam’s gold market
People panic
A lot of people whom VietNamNet’s reporter met yesterday said that they cannot predict the gold price.
Kim Thao, who lives in Hoang Mai District, told VietNamNet late yesterday afternoon that she came to the gold shop at 9 am but she still could not buy anything.
Thao said that she has sold $10,000 at 19,500 dong per dollar and planned to buy gold. She decided not to buy gold when the price was 32.5 million dong per tael, thinking that the price would go down in some more days. However, contrary to her prediction, the price increased to 32.7 million dong, and then to 35.85 million dong on November 8.
“Now I really dare not purchase gold, because the price has jumped to 38.15 million dong per tael,” she complained.
“I do not understand, especially if the Government can intervene the market to force the prices down,” she added.
Binh, another gold buyer, told VietNamNet that he had to spend a whole morning to queue up to purchase gold, but the shop only sold gold in dribs and drabs. “The gold price escalated every minute this morning. The price soared by 200,000 dong per tael just within a short time, from the time you placed order to the time you got delivery,” he said.
While people panicked with the price increases, financial experts said the price increases are predictable. Tran Dung, an analyst, said: “People do not have much information about the gold price performance in the world market. But I know that experts have forecasted the gold price will continue rising to $1650 per oz from the current price of $1410.
“If the world price increases, the domestic price would go up accordingly, and go up more sharply, because the dong is losing its value against the dollar,” he said.
Pham Huyen
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