Locals rush for SJC gold as price stays low

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SaigonTimes English - 37 month(s) ago 6 readings

Locals rush for SJC gold as price stays low

HCMC – Local people on Wednesday rushed to buy gold bearing the brand of Saigon Jewelry Company, as prices remained attractive, with the company quoting its spot price at VND44.8 million a tael.

Locals rush for SJC gold as price stays low

By Thanh Thuong - The Saigon Times Daily

People flood the trading room of Saigon Jewelry Company to buy gold on Wednesday as prices remain attractive to them - Photo: Kinh Luan
HCMC – Local people on Wednesday rushed to buy gold bearing the brand of Saigon Jewelry Company, as prices remained attractive, with the company quoting its spot price at VND44.8 million a tael.

Within on Wednesday morning, the bullion trader sold as much as 7,000 taels of gold, but the demand ebbed in the afternoon, with an additional 500 taels sold out. A tael is equal to 1.2 troy ounces.

Nguyen Cong Tuong, vice manager of the sales department of SJC, attributed “the gold rush” to his company offering a softer price than other brands, while SJC is the benchmark product on the local bullion market.

Tuong said sales in the afternoon decreased sharply as the people were afraid that the local price would fall further in line with the global downtrend.

SJC on Wednesday afternoon bought gold at VND44.5 million a tael and sold it at VND44.8 million, an increase of VND250,000 from the previous day. Meanwhile, the global price as shown on the website www.kitco.com closed at 1,695.4 an ounce, or a fall of US$4 from the previous day’s closing price.

Tuong of SJC ascribed the inverse movements between local and global prices to the strong local demand. Given these updates, the differential between them has expanded to some VND1 million a tael.

While SJC gold sold like hot cakes on Wednesday, other brands failed to attract buyers.

Nguyen Ngoc Que Chi,, general director of Sacombank Jewelry Company (SBJ), said gold sales at her company were pretty much dreary. As consumers preferred SJC gold, they rushed to that company for trade, she said.

The situation at Hanoi-based Bao Tin Minh Chau was similar, with few buyers coming for gold.

On Tuesday, SJC made a stunning move when cutting its gold price by a staggering VND1.2 million a tael compared to the previous day, pulling it down to almost on a par with or even below prices of other gold brands, although SJC is more favored by locals.

SJC on Tuesday closed gold trading at the quoted price of VND44.15 million and VND44.55 million a tael for buying and selling respectively. Tuong of SJC asserted that the trading volume at his firm on the day shot up to 5,000 taels compared to just hundreds of taels in previous days.

Bao Tin Minh Chau on Tuesday bought Thang Long Dragon gold at VND43.8 million and sold it at VND44.25 million a tael.

Local residents have gradually refrained from selling gold and therefore trading firms do not have to reduce prices to attract the public any more, said Vu Minh Chau, general director of Bao Tin Minh Chau.

People now resume buying, Chau noted, adding that the central bank’s announcement saying other gold bars along with SJC brand will still be traded has eased selling pressure from buyers.

According to an expert, people were concerned over the draft decree on gold management which was set to allow only SJC gold bars to be traded if it was approved by the central bank.

The specialist suggested the central bank should think twice before officially collecting ideas from related authorities to avoid dampening the market confidence.

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