The difference in gold prices not only reflects the difference in supply and demand but is also related to many other factors such as management policies, exchange rates and consumer psychology...
Reasons for gold price difference
In Vietnam, the gold bar market is strictly managed by the State Bank of Vietnam. SJC gold bar products are almost monopolized, leading to a shortage of supply when demand increases.
Another part is due to inflation control, gold import is limited, causing supply to not meet demand, pushing domestic gold prices many times higher than international prices.
PSG.TS Dinh Trong Thinh - economic expert - said: "Domestic gold prices are converted from USD to VND exchange rate. When the exchange rate fluctuates, especially in the context of our country's VND devaluation, domestic gold prices can be adjusted higher than international prices. Taxes and fees related to gold trading, such as import tax, value added tax (VAT) and transportation and processing costs of gold bars also contribute to the increase in domestic gold prices."
In addition, Vietnamese people tend to consider gold as a safe investment channel, especially during periods of economic instability or high inflation. At the end of the year, near Tet or the day of the God of Wealth, the demand for gold storage increases while the supply is scarce, causing people to line up and rush to buy, contributing to the increase in domestic gold prices.
Comments on gold prices, what do experts say?
“It is difficult to know the world gold price, but according to my prediction, in 2025, the world economy will be more stable, conflicts will ease. The US economy will be stronger before the decisions of President Donald Trump are factors that make the gold price go down and become more stable,” Mr. Dinh Trong Thinh shared.
According to experts' forecasts, from now until January - February 2025, the price of gold will still be at 2,600 - 2,750 USD/ounce. This is also a factor proving that the price of gold has decreased compared to the previous period.
Mr. Thinh also advised people to participate in other investment channels such as real estate, stocks, bonds or savings to reduce dependence on gold.
