In response to a remarkable surge in the value of gold, jewelry outlets in Hanoi and Ho Chi Minh City (HCMC) are witnessing an unprecedented depletion of their stocks of 24k gold rings. As the price of this precious metal reaches historic highs, consumers are flocking to acquire these coveted items, resulting in empty shelves across major retailers.
By 4 p.m. on Tuesday, prominent jewelry chains including Mi Hong, DOJI, and PNJ in HCMC had exhausted their inventories of 24k rings, leaving disappointed customers without purchases. Staff members at DOJI and PNJ lamented the scarcity of high-quality gold rings, indicating that only lower-grade options remained available. Similarly, a representative from Mi Hong disclosed that their 24k ring selection had swiftly sold out upon opening for the day.
The escalating demand for gold was reflected in the market prices, with gold ring rates experiencing a 1.8% surge on Wednesday morning, reaching VND76.5 million ($3,065) per tael. Each tael equates to 37.5 grams or 1.2 ounces. Just a day earlier, prices had peaked at a record VND77 million ($3,086) per tael for gold rings, while gold bullion rates soared to VND84.7 million per tael, marking a new pinnacle.
Anticipating a continued uptrend, consumers rushed to invest in gold, viewing 24k gold rings as a cost-effective alternative to gold bars of similar quality. Consequently, some Mi Hong outlets implemented restrictions, limiting each customer to the purchase of two rings and five bars, while a Saigon Jewelry Company (SJC) store in District 3 imposed a cap of five rings per customer.
Meanwhile, in Hanoi, a DOJI store in Cau Giay District found itself with only a handful of rings remaining by 6 p.m., while another outlet in Dong Da District confirmed limited stock availability, echoing the supply chain challenges faced by jewelry retailers.
An industry insider shed light on the predicament, stating, “We are experiencing a shortage of gold throughout our network.” The scarcity can be attributed in part to governmental constraints on gold imports, compounded by recent law enforcement crackdowns on gold smuggling operations, which have left major jewelry chains wary of inadvertently procuring illicit gold.
Huynh Trung Khanh, Deputy Chairman of the Vietnam Gold Traders Association, revealed that efforts had been made to address the supply shortage. Last year, the association proposed to the State Bank of Vietnam for SJC, DOJI, and PNJ to be permitted to purchase 500 kilograms of gold for jewelry production. However, formal approval for this initiative is still pending.
In the face of these challenges, industry stakeholders continue to navigate the complexities of a market characterized by both soaring demand and regulatory constraints, as consumers eagerly seek to secure their investments in the timeless allure of gold.