Gold price escalating, Hanoians rushing to sell gold

The gold price yesterday surged to the highest peak in the history to 38.6 million dong per tael. Meanwhile, goldsmith companies reported a sharp increase in the volume of gold sold by people.

Not only small investors, but big speculators also rushed to sell gold yesterday on July 13, to take profits. Goldsmith companies and big gold shops reported the big transactions worth tens or hundreds of taels.

Nguyen Van Hong from Yen Phu ward in Hanoi decided to sell 20 taels of gold yesterday, saying that he sold gold for Vietnam dong which he will deposit at banks. Hong said that he bought the gold a couple of months ago, when the gold price was 36 million dong per tael. As Hong can make fat profit of two million dong per tael now, he has decided to sell all the 20 taels he purchased before.

However, Hong was told to wait for his turn to make transactions, because there were many sellers yesterday, and the gold shop on the first floor of Ruby Plaza did not arrange enough cash to make payment.

The gold shops on Tran Nhan Tong Street in Hanoi were also full of sellers yesterday. At Bao Tin Minh Chau shop, the peak transaction hours were from 9.30 am to 10.30 am. There were so many visitors that there was no idle place on the parking area in front of the shop.

Nguyen Van Trung from Cau Giay district, said that he had to wait for a long time before making transactions. Trung said that the gold price has increased to the level which is high enough for him to make profits; therefore, he decided to sell gold.

Bao Tin Minh Chau quoted the purchase price at 38.31 million dong per tael yesterday morning. Ha, an officer at Bao Tin Minh Chau, said that there were nine sellers and only one buyer out of every 10 visitors to the shop yesterday morning.

“They mostly sold bullion gold. There were also the people who sold jewelry, but the trading volume was low,” Ha said.

A representative of SJC Hanoi, a subsidiary of DOJI Group, said that it could purchase 1000 taels in the morning of July 13 alone, double that in previous days. There were seven sellers and three buyers in every 10 visitors.

Do Minh Phu, Chair of DOJI said that the big purchase turnover and small sale turnover go in accordance with the economic laws: investors purchase products at the time when the prices are low and sell when the prices increase.

Phu said that the total trading volume of the whole DOJI system was 4000 taels yesterday morning.

Hoang Huu Dinh, a senior executive of Bao Tin Minh Chau, believes that people will continue selling gold in the next some days, if the gold price stays firmly at 38 million dong per tael.

In HCM City, people also decided to sell gold to take profit, but the number of sellers was lower than in Hanoi.

The owner of Van Nga Gold shop on Le Thanh Ton Street in district 1, said that the market became bustling yesterday after a long time of keeping quiet. Several weeks ago, when the gold price also escalated, Hanoians rushed to sell gold, while HCM City local residents took no actions.

Thanh, a gold seller, said that she bought five taels of gold at 38.3 million dong some days ago, and now she decided to sell the five taels for a modest profit. Thanh said she needs money now; therefore, she has to accept the low profit.

Nguyen Cong Tuong from the Saigon Gold, Silver and Gemstone Corporation, said that the corporation bought 1500 taels of gold and sold 800 taels yesterday morning. He also said that the sellers not only included individuals who made small transactions, but also big speculators who sold tens of taels. Besides, banks also collected gold, even though the prices were high.

However, Tuong said he cannot understand why banks also tried to purchase gold

Source: VnExpress

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices