Vietnam & World Gold Market News

Vietnam Gold Market News

Vietnam gold prices remain above global levels 2009-04-09 - VietNamNet/SGGP

Gold prices in Vietnam remain higher than global prices with gold companies blaming it on a shortage of supply.

Analysts say this is unreasonable on people who need to buy gold for certain transaction like property or pay debts.

What the gold companies are not saying is that the short supply is probably owed to the huge volumes they exported since the beginning of this year to make profits after importing them at much lower prices last year.

Record gold exports so far this year have fetched US$2.29 billion.

On April 6 Saigon Jewelry Company (SJC) gold was sold at VND19.46 million per tael and bought at VND19.4 million per tael, while PNJ-DAB gold cost VND19.43 million and 19.36 million.

They translate into a VND360,000-400,000 per tael premium over international prices. But trading was thin.

Phu Nhuan Jewelry Joint-stock Company only sold a total of 2,500 taels and bought 450 in the first week of April, down 50 percent from the previous week.

SJC too saw a widening gap between buying and selling and a fall in sales.

Huynh Trung Khanh, advisor to the World Gold Council in Vietnam, said gold investors, especially those who trade gold certificates, face risk due to high volatility in prices.

And they cannot predict domestic price movements based on world prices because of the disconnect, he said.

Meanwhile, the US dollar continued to strengthen in HCMC’s unofficial market April 7. It was traded at up to VND18,000.

Many electronics shops in District 3 have begun to list prices in dollars at an exchange rate of VND17,900.