Domestic gold price higher than world price by more than 12 million VND/tael
Recorded at 9:50 am on July 30, SJC gold bar prices were listed at 138.5 million VND/tael for buying and 142.5 million VND/tael for selling. DOJI applied the same price. Compared to July 29, gold bar prices increased by 1 million VND/tael in both directions.
Rong Thang Long gold of Bao Tin Minh Chau is listed at 139.6-143.5 million VND/tael, an increase of 1.5 million VND/tael in both directions compared to the previous session. The selling price of this product is 1 million VND/tael higher than SJC gold bars.
At the same time, world gold prices fluctuated around 4,076 USD/ounce. The USD selling exchange rate at Vietcombank was at 26,515 VND/USD.
Converted at this exchange rate, the world gold price is equivalent to about 130.3 million VND/tael. Thus, the selling price of SJC gold bars is about 12.2 million VND/tael higher than the converted world gold price.
The above exchange rate does not include taxes, fees, processing costs, transportation, distribution and specific supply and demand factors of the Vietnamese market.
The gap has decreased by nearly 60% since the end of March
At the end of March, SJC gold bars were recorded around 169.8-172.8 million VND/tael. The world gold price in the same period converted is equivalent to about 142.6 million VND/tael, lower than the selling price of SJC by about 30.2 million VND/tael.
Compared to this milestone, the difference between the selling price of SJC gold bars domestically and the converted world gold price has decreased by about 18 million VND/tael, equivalent to nearly 60%.
This narrowing mainly comes from the fact that domestic gold bar prices decreased more sharply than world gold prices.
At the end of March, world gold prices were around 4.493 USD/ounce. By the morning of July 30, world gold prices were still around 4.076 USD/ounce, down about 417 USD/ounce, equivalent to 9.3%.
During the same period, the selling price of SJC gold bars decreased from 172.8 million VND/tael to 142.5 million VND/tael, losing 30.3 million VND/tael, equivalent to a decrease of about 17.5%.
If calculated according to the exchange rate, world gold decreased from about 142.6 million VND/tael to 130.3 million VND/tael, equivalent to a decrease of about 12.3 million VND/tael. This decrease is significantly lower than the decrease of domestic SJC gold bars.
Widening buying-selling spread
While the gap between domestic and world gold is narrowing, the difference between buying and selling prices in the domestic market is increasing.
At the end of March, SJC and DOJI both listed gold bars at 169.8-172.8 million VND/tael, a difference of 3 million VND/tael. On the morning of July 30, the difference at the two businesses was 4 million VND/tael.
Rong Thang Long gold at Bao Tin Minh Chau has a buying - selling difference of 3.9 million VND/tael, from a buying price of 139.6 million VND/tael to a selling price of 143.5 million VND/tael.
Buy-sell difference directly affects the breakeven point of physical gold traders. With a difference of 4 million VND/tael, SJC gold bar buyers only breakeven when the buying price increases by at least 4 million VND/tael compared to the time of depositing money, not including other incurred costs.
