Gold Rush in Vietnam as Prices Hit Record Highs

In an unprecedented turn of events, Vietnam is witnessing a gold rush as prices soar to historic highs. The Saigon Jewelry Company store in HCMC’s District 1 saw a queue of 30 people by 3 p.m., with the shop limiting purchases to one tael of gold ring per customer to prevent hoarding. A tael, equivalent to 37.5 grams or 1.2 ounces, has become a coveted measure of wealth amidst the current gold frenzy.

At Mi Hong shop in Binh Thanh District, the scene was similar, with customers allowed to purchase up to two taels of rings. This surge in demand is fueled by the Vietnamese bullion price reaching a record VND96 million (US$3,760) per tael, driven by global uncertainties such as U.S. tariffs, fears of trade tensions, and expectations of monetary policy easing.

Investors and Buyers React to the Gold Price Surge

Retail investors and buyers are rushing to capitalize on the price surge, with many, like 28-year-old Huyen, making purchases at peak prices. "I wanted to wait for a stronger dip but as prices have been rising fast, I can no longer delay my purchase," Huyen explained, highlighting the urgency felt by many to invest in gold amidst its rapid price increase.

In Hanoi, the situation mirrored that of Ho Chi Minh City, with queues forming outside popular gold stores. Bao Tin Minh Chau stores in the downtown area, selling bullion at VND96.5 million per tael, limited customers to two taels each, yet still saw long waiting times as buyers sought to secure their share of the precious metal.

Incentives and Challenges in the Current Gold Market

Despite purchase limits, stores are offering incentives to encourage more buying. Phu Quy jewelry stores, for instance, allow customers to buy additional taels at the same price with a two-week delivery wait. However, the overwhelming demand has led to gold shortages, with stores uncertain about when new stocks will arrive, further fueling the buying frenzy among Vietnamese eager to invest in gold.