Gold price drops like lead after God of Wealth peak

Huge crowds of people were lining up to buy gold on the God of Wealth day. Source: vnexpress.net

The local tradition of purchasing gold to seek fortune helped multiply jewellery firms’ average daily revenue on the God of Wealth day (February 14 this year).

Riding the waves of local demand, Phu Nhuan Jewelry JSC (PNJ), DOJI Gold & Gems Group JSC (DOJI), Bao Tin Minh Chau, Phu Quy, and others annually launch promotions and new products to lure people into purchasing gold for the occasion of the God of Wealth day.

This year, PNJ increased the number of staff and offered many means of e-payment to serve customers. Additionally, DOJI also launched 300,000 gold products, up 30 per cent against last year, and opened its shops at 6AM instead of the normal 8.30AM to meet the huge demand.

From the early morning of this year’s God of Wealth day, buyers have been lining up in front of jewellery stores across the country.

Sales growth on this year’s God of Wealth day is expected to be on par with last year’s impressive rates. Accordingly, zing.vn quoted PNJ’s representative as saying that as of the afternoon of last February 25 (the 2018 God of Wealth day), the company’s revenue reached VND750 billion ($32.6 million), up 40 per cent on-year.

According to PNJ’s financial report, its 2018 revenue was VND14.68 trillion ($638.3 million). Thus, the sales of the last God of Wealth day accounted for 5 per cent of PNJ’s latest whole-year business results.

Meanwhile, without disclosing specific business result, DOJI also stated that its sales on the latest God of Wealth day increased by 50 per cent against 2017, equalling 290,000 kinds of gold products.

Same paradox – sharply dropping price

Contrary to gold stores’ commitment to keep prices stable,prices quickly fell after the God of Wealth day. Accordingly, as of the afternoon of February 15 (the day after the God of Wealth day), the price of gold sharply fell to VND36.8 million ($1,600) per ounce.

Quoc Huy (26 year old, Hanoi’s Cau Giay district) has been surprised as he suffered a loss of VND750,000 ($32.6) per ounce within a single day after spending VND112.8 million ($4,904), equalling VND37.6 million ($1,634) per ounce, to buy three ounces of gold. The price difference in a single day was VND2.25 million ($97.8) for three ounces of gold.

In fact, gold prices in most firms have been reducing sharply since the God of Wealth day. On February 15, Saigon Jewelry Company Limited (SJC) listed gold at VND36.65-36.87 million ($1,593-1,603) (buy-sell) in Hanoi. Thus, compared to February 14, while buying prices remained unchanged, selling prices fell by VND150,000 ($6.5).

DOJI, which listed the highest gold price on the God of Wealth day, also sharply cut selling price on the following day. Specifically, as of 9AM February 15, its prices were VND36.65-36.85 million ($1,593-1,602) (purchasing-selling), down VND750,000 ($32.6) against the previous day’s selling price. Currently, DOJI’s selling price increased to VND37.05 million ($1,610) while the purchasing price remains VND36.65 million ($1,593).

Similarly, PNJ’s gold price in Hanoi also dropped from VND36.6-37.35 million ($1,591-1,623) to VND36.65-36.8 million ($1,593-1,600).

Last year, people also suffered losses of VND500,000-700,000 ($21.7-30.4) a day after the God of Wealth day.