Lots of people buy gold on God of Wealth Day with a belief that it will bring them luck during the year ahead (Photo: VNA)
The gap between gold buying and selling prices on the God of Wealth Day (the 10th day of the first lunar month) is wider than ever. In some gold stores, the gold selling price is even double the buying price. Is this a bubble created by gold trading enterprises?
The price gap between selling and buying recorded in some gold trading companies is up to 800,000 VND (more than 34 USD)
On the price chart of Saigon Jewelry Company Limited at 14:00 on February 14, a SJC-brand gold tael is traded at some 1,571 to 1,591 USD (buying/selling).
At Phu Quy Gold JSC, a 9999 Than Tai Phu Quy gold bar (weighing one tael) is bought at 1,573 USD and sold at 1,599 USD, while the 9999 gold ring’s buying price is 1,582 USD and its selling price is 1,599 USD.
Those of Bao Tin Minh Chau (Thang Long Dragon gold bars) are 1,567 USD and 1604 USD, respectively.
You could say the price is not much more volatile than in the previous trading session.
However, the selling-buying price gap is much wider, up to 34 USD, twice as much as that of regular days.
For example, the price gap of Thang Long Dragon gold bars is 36.5 USD (6.45 USD higher than that in the morning and 17.2 USD higher than that of previous session).
The price gap of SJC Gold Bar product by Sai Gon Jewelry Company Limited also climbed up 10.75 USD compared to that of the trading session one day earlier, while bars from Phu Quy Gold JSC recorded a rise of 6.45 USD per tael day-on-day to 25.8 USD.
Buying-selling gold price gap on God of Wealth Day in 2018 and 2019
Buying-selling gold price gap on God of Wealth Day in 2018 and 2019
Most customers only buy a little
According to gold trading companies, the number of customers coming to gold stores on the God of Wealth Day rises by 20% to 40% compared to regular days.
The wider price gap is attributed to the surge of buyers.
Adding more information on the phenomenon, Pham Hai Au, Deputy Chairman of Phu Quy Gold JSC says gold buying for luck on the God of Wealth Day should be distinguished from gold buying for business purposes.
Despite the surge of customers on the God of Wealth Day, buying power is modest. Most customers go for a minor piece of gold just for luck while on other days, they can buy 10 to 100 taels each.
“We should be aware that when clients buy gold, the selling price includes surcharges of human resources however they are often excluded from the buying price, thus there comes the price gap. Gold companies should clarify this point for less confusion among customers,” says Au.
Most of the customers go for a small piece of gold just for luck (Photo: DucDuy/Vietnam+)
A representative of Bao Tin Minh Chau Company Limited said the price gaps between selling and buying at gold trading companies are higher this day.
However, Nguyen Thi Luyen, acting Head of Business Department at Bao Tin Minh Chau Company Limited, says the gold demand on this day is higher and is practical as many people even line up from 3 to 4 a.m to become the first gold owners on the God of Wealth Day.
Also according to Bao Tin Minh Chau company’s representative, as gold is bought at a humble volume on this day for luck, they hardly are sold until one year later.-VNA
