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Super profits made on local gold market
Domestic gold prices rose dramatically on Sept. 18 morning, jumping 1.5 million VND to hit 18.3 million VND per tael, due to the sudden rise of global gold and oil prices.
By late evening, however, gold prices cooled down to around 18 million VND.
Gold branded PNJ-DAB by Phu Nhuan Jewellery Co is listed at a buying/selling price of 17.8/18.3 million VND (1,072/1,102 USD) per tael (one tael is equivalent to 1.2 ounces), against 16.84/16.94 million VND on Sept. 17.
The Hanoi-based Bao Tin Minh Chau Jewellery Co (BTMC) listed prices at 17.7-18.2 mllion VND (1,066/1,096 USD) per tael.
Sai Gon Jewellery Co (SJC) listed prices at 17.95-18.15 million VND (1,081/1,093 USD) per tael in Hanoi and HCM City on Sept. 18, up 1.25 million VND per tael over Sept. 17’s price.
On the Sai Gon Gold Trading bourse, about 206,400 taels were traded on Sept. 18 morning, most of them for sale. Matched prices were over 18 million VND per tael.
“This is one of the highest increases in local gold prices ever,” said Nguyen Huu Dang, head of business department at BTMC.
Local gold shops reported the number of sellers was five to six times higher than the number of buyers.
“Selling gold at this time gains great profit. ‘Super profit’!” said Luu Quang Dien, director of SJC’s branch in Hanoi .
But even with the strong influx of gold sellers, on average, local gold prices still stood at above 18.1 million VND in the late afternoon as global gold prices did not seem to be cooling down.
“But it’s really difficult to predict the next trend,” added Dien.
Local prices were about 500,000 VND per tael higher than global prices.
On Sept. 18, global spot gold rose to 877 USD an ounce in New York , up sharply from the nominal US market close of 777.55 USD on Sept. 17.
The increase of about 100 USD per ounce was recognised as the highest between two sessions in the last 26 years.
“It’s unbelievable, simply unbelievable, what is happening,” Eugen Weinberg, commodities analyst at Commerzbank, told Reuters on Sept. 18.
Gold posted a record one-day gain in absolute dollar terms on the day, hitting a near six-week high, with investors fleeing to safety as they watched the stock-market carnage and expected further losses.
“Investors are insecure and going into gold. There is safe-haven buying from all over the world,” said Nguyen Thanh Truc, director of Agriculture Jewellery Co.
The sudden increase of global prices was also blamed on rising oil prices and on the unchanged benchmark interest rate of 2 percent on the US dollar.
Meanwhile, several gold experts maintained that global gold prices would rarely pass 1,000 USD per ounce, as they did in March, because investors do not have much money after losing billions of dollars in this year’s financial storm.
VNA
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