Gold price skyrocketing, market being frozen - Tuesday, November 30, 2004 [View All]

[Jose Diablo]

http://www.bvom.com/news/english/news/index.asp?.sequence=28683&.this=55

The price of SJC gold in Ho Chi Minh City stood at VND8.65 million per tael (bought in) and VND8.7 million per tael (sold out) on 11/29, rising 16.1% as against the lowest price recorded on 05/11.

This can be attributed to USD devaluation on the world market and speculators’ shift to the precious metal. The US Fed says the green back has depreciated 10% during the past ten months.

Despite skyrocketing price, gold trading is so quiet on the domestic market. Mr. Nguyen Huu Thanh, Deputy General Director of the Saigon Jewelry Company (SJC) attributes the situation to limited payment demand, frozen real estate market. This month, gold sold out by SJC reduces 50% as against the average level posted in quarter three.

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Meanwhile, gold companies have been resistant to import gold for fear of big risk. During the first 11 months, domestic gold businesses have bought 700,000 tonnes of SJC gold, up 142% y-o-y. Currently, SJC gold bar accounts for 80% the total gold bars being traded on the domestic market.