Prospects purchase and promote gold at a jewellery store in Binh Thanh District, Ho Chi Minh Metropolis, August 7, 2020. Picture by VnExpress/Quynh Tran.
A provide scarcity in Vietnam has widened the distinction between home and world gold costs, in accordance with consultants, however authorities reject the declare.
Gold costs have been rising relentlessly this 12 months as traders sought a secure haven amid the uncertainties attributable to the Covid-19 pandemic. Vietnamese gold costs have all the time been larger than worldwide charges, however in latest weeks the distinction has been widening.
Costs of the favored SJC gold on Saturday morning was VND60.three million ($2,594.87) per tael of 37.5 grams (1.2 ounces). This translated right into a distinction of $150, up from $40-100 final month.
Huynh Trung Khanh, senior guide to the World Gold Council in Vietnam, Singapore and Indonesia, stated the rising distinction may very well be as a result of there’s a brief provide and gold sellers have hiked costs.
The chairman of the Vietnam Gold Funding and Buying and selling Company (VGC), Tran Thanh Hai, concurred with him saying native distributors like Saigon Jewellery Firm (SJC) and DOJI are involved a few scarcity and have pushed their costs up.
DOJI reported a 30 p.c surge within the variety of clients in July and this month from a 12 months in the past. Bao Tin Minh Chau, one other vendor, stated at occasions in latest weeks demand was a number of occasions larger than in the identical interval in previous years.
However authorities dismiss this. Nguyen Hoang Minh, deputy director of the State Financial institution of Vietnam’s Ho Chi Minh Metropolis department, stated there is no such thing as a brief provide of gold bullion.
Gold corporations are solely pushing up costs to hedge the dangers arising from the worldwide volatility, he stated.
Vietnam, with reserves of practically $90 billion, might intervene in each the gold and international foreign money markets if mandatory, he added.