Many gold shops in Hanoi and Ho Chi Minh City Friday morning temporarily closed down in front of the noses of queuing-up customers, stating they were out of supply.
For illustration purpose only Photo: Reuters
Some stores under the chains of Bao Tin Minh Chau and Phu Quy in the capital city of Hanoi decided to cease trading from 10 am when people had lined up to buy the precious metal in fear of another price hike.
World gold price then revived to $1,771 an ounce after plunging some $100 in the last 2 days.
The bid and ask price of gold produced by Saigon Jewelry Co, Vietnam biggest gold trader, was then quoted at VND46.4 million and VND46.9 million a tael, or some VND1.9 million pricier compared to world’s ask price.
Half an hour later, when the world spot gold was at $ 1,775.70 an ounce, those shops resumed sales with the ask price widening to VND47.2 million a tael and bid price unchanged.
The price gap between international and domestic spot gold was then some VND2.6 million a tael.
However, seeing more guests flocking, Bao Tin Minh Chau closed the second floor, which serves retail transactions. The shop security guards then invited guests to stand in line outside the shop to wait for their turns.
Some minutes later, the electronic price panels were turned off, a very rare move in recent years.
Neighboring stores of Phu Quy practically did the same thing when they shut down the selling price information on its electronic price panels.
The same scarcity phenomenon happened at the chain of SJC Hanoi stores under DOJI Group. Those buying more than one tael were asked to take a receipt instead for late delivery.
Vu Minh Chau, general director of Bao Tinh Minh Chau admitted that the ask rate was overpriced, even “bubble blowing”, and only the bid price is closer to its world counterpart, Vnexpress reported .
We do it for our own safety in case the world price slumps, he added.
Gold fever spreads southwards
Some shops under Phu Nhuan Jewelry Co (PNJ) also suspended trading for 30 minutes on Friday morning due to the same reasons as announced by their Hanoi colleagues.
PNJ had focused supply for the Hanoi market, so when demand in Ho Chi Minh City rose, we were temporarily out of supply, VnExpress quoted Nguyen Thi Cuc, deputy general director of PNJ, as saying.
The company has sold 4,000 taels of gold in the southern economic hub after resuming sales.
Long lines of customers were also seen at stores under Saigon Jewelry Co (SJC) in HCMC from early morning with the number of buyers overwhelming sellers.
It is rare scene in HCMC where customers have previously stood aside during the recent gold fever.
According to Nguyen Cong Tuong, deputy sales manager of SJC, said there was virtually no seller in the morning.
A shortage of 3.75 grams and 7.5 grams in gold bullion occurred at some of our stores in the morning, but still sufficient at our headquarters, said Tuong.
Prof. Dr Tran Hoang Ngan, Deputy Rector of HCMC University of Economics said people should be careful with changes in gold prices since both domestic and world gold prices are also speculative.
Therefore, gold price is unpredictably fluctuating, he said.