Gold ring prices are sky high, why are there people lining up to buy?

Tight gold supply

After just one session of downward adjustment, the price of plain round gold rings in the domestic market quickly rebounded. Looking at the chart, it can be seen that the price of plain round gold rings 9999 is still anchored around the record peak.

Despite the high prices, many people lined up at gold shops to buy. Notably, buying SJC gold bars or plain gold rings at this time is very difficult. Shops often sell in very small quantities, at irregular hours. Some people even "hunt" for 2-3 days to buy a tael of gold.

Talking to Lao Dong reporter, Dr. Nguyen Tri Hieu - economic expert - said that the cause of this situation may come from the limited supply and the ability of businesses to hoard goods.

According to Dr. Nguyen Tri Hieu, the market currently has two segments that investors are interested in, including SJC gold bars and 9999 smooth round gold rings. The gold bar market is under control, so prices do not fluctuate much. Therefore, many people are currently looking to buy 9999 smooth round gold rings.

"The gold bar market is being squeezed, the gold ring bubble is bulging. At the same time, gold rings are not controlled, so the price continues to increase even though there are times when the world gold price decreases" - Dr. Nguyen Tri Hieu added.

According to Dr. Nguyen Minh Phong - an economic expert, the scarcity of plain round gold rings is partly due to the sharp increase in total demand in the context of the State "not yet liberalizing the gold market".

"The State has not allowed the import of gold through different channels, including the import of gold jewelry. Therefore, the supply is more or less limited. The difference between supply and demand creates scarcity, causing businesses to hold back and wait for higher prices, making the market even more scarce."

Will the price of gold rings increase or decrease in the coming time?

In recent sessions, while the price of SJC gold bars has fluctuated erratically, without any specific rules, the price of round gold rings has often adjusted in the same direction as the world gold market. Therefore, many investors often monitor factors that can affect the world gold price before spending money.

Sharing with reporters, Dr. Nguyen Tri Hieu commented that the price of gold in the near future could increase to 3,000 USD/ounce. This expert said that the time when the price of gold reaches this level could be early 2025.

"In the short term, the world gold price may reach the 2,700 USD/ounce mark this year. The main reasons for the increase in gold prices are the escalating geopolitical tensions in the world, central banks and investors increasing purchases and the interest rate management policy of the US Federal Reserve (FED)..." - Mr. Hieu said.

However, Dr. Nguyen Tri Hieu emphasized that the price of gold rings does not always follow the world market: "In the long run, the two markets go in the same direction. However, in a certain period, the price will be different, because the two markets are not connected to each other."