VietNam – Vietnamese buy 14 tons of gold to avoid inflation

Due to concerns about escalating inflation and the weakening of the Vietnamese dong, many investors have increased their purchases of gold to hedge against risks.

The World Gold Council has just issued a report on the trend of Vietnamese and world gold demand, in which the agency said That Vietnamese consumers bought 14 tons of gold in the second quarter, up 11% over the same period in 2021.

“This growth was achieved by the total demand for bullion and copper gold reaching 9.6 tons, up 5% year-on-year, and the demand for gold jewelry to 4.5 tons, up 28%“, the World Gold Council said.

As for world gold demand, the agency said that in the second quarter it fell by 8% over the same period, to 948 tons.

“This is reflected in the record high premiums for domestic bullion investment. The sharp increase in jewelry demand compared to the same period last year was also due to the decline in domestic gold prices and the optimistic sentiment of consumers in the context of the global economic recovery, along with the $ 15 billion stimulus package set by the Vietnamese government,” he said.In the business results report for the second quarter, Phu Nhuan Gems and Gold Joint Stock Company (PNJ) also said that thanks to the recovery in consumption, financial indicators grew to new peaks, this enterprise recorded revenue and profit after tax in the second quarter increased by 81% and 71% over the same period, respectively, it reached VND 8,058 billion and VND 378 billion.

Louise Street, EMEA Senior Analyst at the World Gold Council, forecasts demand for safe-haven assets will continue to encourage gold investment. However, further monetary tightening and the continued growth of the DOLLAR can cause many difficulties.

As many countries are facing economic downturns and the cost-of-living crisis continues to squeeze spending, consumer demand is likely to decline even though there are still safe areas of investment,” he said.

After the US Federal Reserve (FED) was cautious about raising interest rates to combat inflation, on July 29, the world gold price rose to $1,765 an ounce, up 0.35% in the last 24 hours.

In the domestic market, Saigon Precious Gold and Silver Company (SJC) listed the price of gold bars at 65.2 – 66.22 million VND/volume (buy – sell). This price increased by 200,000 VND/volume in both buying and selling directions compared to the previous trading session.

(Source: Zing News)

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