High gold price fails to deter shoppers

Demand for gold jewellery on the domestic market has not significantly changed despite the fact that the cost of gold has climbed to its highest ever level, according to industry experts.

“In recent days, we have had a large number of customers across the country, ” said General Director of Bao Tin Minh Chau Joint Stock Company Vu Minh Chau.

Chau added that as the wedding season approached, his company had seen no change in customer volume.

Sai Gon Jewellery Holdings Company (SJC) reported business had remained unchanged.

“The number of people buying wedding jewellery still remains high. However, the number of customers shopping for everyday jewellery is down 20 per cent,” said Tran Thi Ngoc Suong, head of SJC’s Jewellery Department.

To maintain customer volume, gold companies have designed a variety of new products comprising less gold.

“Our company has introduced many new products. We cut down the gold weight so that more customers can afford them,” said Chau.

He added that with only about VND1 million (US$52), customers could buy a wedding ring.

“We use modern technology, which helps us produce light weight gold jewellery,” he added.

The company has also organised a number of discount promotional programmes.

These new methods seem to be working for the gold companies, attracting large numbers of mid-income earners.

“It is a clever choice to buy cheaper wedding jewellery with good design when the gold price is so high,” said Van Anh, a customer.

The price of gold on the domestic market has significantly increased. Yesterday afternoon, it climbed to VND31.64 million ($1.600) per tael (1.2 troy ounces). — VNS

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