Gold Rush: Long Lines to Purchase Bullion in Vietnam

Local reports indicate that lines of several dozen people are waiting to purchase gold bullion from various state-owned banks in Vietnam, primarily in Hanoi and Ho Chi Minh. The interest in buying the precious metal at this time seems to be driven by the lower prices these banks offer to retail investors, in line with the Central Bank of Vietnam’s objective of aligning domestic gold prices with global ones.

Investors Endure Long Lines to Buy Gold Bullion in Vietnam

Vietnamese investors are showing an increasing interest in gold. According to local reports, long lines of people interested in acquiring gold bullion were observed in different branches of banks in Hanoi and Ho Chi Minh. The investors, counted in the dozens, were hoping to take advantage of the direct sale of gold from four state banks in Vietnam, including the Saigon Jewelry Company (SJC), Agribank, Vietcombank, BIDV, and Vietinbank.

The gold rush ensued as the central bank announced that it would sell gold directly to these banks to offer it to the general public. This move is expected to lower domestic gold prices that recently reached historic highs compared to foreign market prices. Prices for a tael (37.5g) of gold reached $3,620 last month in Vietnam, and since then, prices have come down to $3,107, with banks allowed to sell each tael with a 1.2% discount over market prices.

The bank is currently investigating the source of this imbalance, with officials stating that there might be illicit factors behind it. However, other reports state demand has increased as the Vietnamese dong loses value.

People interviewed while waiting in line stated that they were buying gold as an asset, believing that gold prices would maintain their stability over time. In the foreign market, gold prices have seen a significant rise this year, driven by geopolitical affairs and the increasing demand from central banks seeking to diversify their reserves.

Predictions indicate that gold prices will reach even higher numbers. Jim Rickards has forecasted that gold prices will touch $27,000 levels by 2026, updating its previous prediction that set gold at $17,000 levels by that same year.

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