Last weekend, gold suddenly jumped to VND42.5 million a tael,
the highest level in the past month.
In stark contrast to the scene over the last few months, gold shops along Tran Nhan Tong Street, one of the biggest gold trading places in Hanoi, have become busy since the first days of June after consecutive days of price rises.
Bao Tin Minh Chau Shop at No. 29 sometimes received 50 customers. A staff here said that most of them came to buy.
According to some customers, they are considering investing in gold again now because the price is still low, while the market is showing signs of recovery. Many of them said they have cash, but don't know where to invest.
"Gold prices have been on a long decline due to world market trends and the country’s economic policies,” said Hoang Minh Cam, an investor in Thuong Dinh Street, Thanh Xuan district. “Before we sold out of gold and invested in securities. But now that the gold market is going up again and I think it is not likely to fall. And I am considering turning to gold again because the market shares have been going down in recent days."
Cam said that many people who have earned large amounts of money by investing securities over the last few months are also thinking of switching to gold.
Kim Phuc in Cau Giay District also brought her savings of some VND 600 million ($28,585) to buy gold on Monday. She said that she did not want to put it into banks because the deposit interest rate continues to decline.
“I think that gold only loses value in the short term due to the instability of the world’s economy,” Phuc said. “I believe experts who predict that gold price would go up to $2,000 an ounce this year.”
Le Chinh Minh took the nearly VND2 billion from selling a 30-square metre house in Ngoc Hoi district, Hanoi, and also invested it all in gold. Minh said that he saw about VND100 million ($4,762) profit just after just one day.
According to an SJC branch on Xa Dan Street, confirmed that gold sales have been up in recent days.
An expert from the The Vietnam Gold Traders Association said that it was easy to understand the trend because of the fact that bank interest rates and the real estate market are no longer attractive, while many people still expect gold market to recover.
But not all are so optimistic about the gold market. Other experts forecast that prices would fall again after rising sharply in the first week of June. They said that a gold is unlikely to see steady increases because European countries are still in economic crisis.
The price of gold in Vietnam dropped by nearly VND500,000 a tael (1.2 ounces) on June 4, while international prices went down due to profit-taking.
Last weekend, gold suddenly jumped to VND42.5 million a tael, the highest level in the past month.
Domestically, gold went for VND1.3 million a tael, higher than global price as low demand could not manage to maintain a wide gap between local and global prices.
On the free market, dollars were bought at VND20,865, and sold at VND20,885 per dollar, down VND5 from last weekend.