VietNamNet Bridge – According to a November report by the World Gold Council (WGC), gold demand in Vietnam in the third quarter of this year decreased by 5% compared to the same period last year.

Specifically, the total demand of the world for gold bars in 2015 will increase by 8% compared with 2014, reaching approximately 1,1120.9 tons. The demand for gold jewelry will rise by 6%, but the global gold mining output will rise only 1%.

As reported by the WGC, gold jewelry demand in Vietnam and Indonesia in 2015 will double as gold prices plummet. Economic stability, growth and monetary policy have made the price of gold in Vietnam reduce by a half.

WGC also said that the price of SJC gold, the most prestigious gold brand in Vietnam, reduced by 50% in the past year, from $200 an ounce to about $100 per ounce. But because of the habit of hoarding gold rings, gold demand of the Vietnamese is still very large.

Specifically, in 2014, the total gold jewelry demand in Vietnam was 12.5 tons and it was up to 11.6 tons in the first three quarters of 2015. In the third quarter alone, the figure was up by 31% compared with 2014.

However, demand for gold bullion fell sharply by 13% in the third quarter, with 11.5 tons compared to 12.8 tons of the same period last year.

Demand for gold in Indonesia, South Korea and Vietnam registered two-digit increases owing mainly to lower gold prices. Economic growth and low inflation also spurred gold demand in Vietnam.

According to the WGC, total gold demand of the people and organizations in Vietnam was about 66.7 tons in 2014. In the first three months of 2015, coinciding with the new year festival and the Day of the Gold of Wealth, the demand for gold was up to 18.9 tons. However, in the third quarter, the demand dropped to just 15 tons.

WGC November report also said that of the 10 countries and organizations that hold the highest volumes of gold in the world, the US remains the leader with more than 8,133 tons. Germany and the International Monetary Fund (IMF) rank second and third. China and Japan are the Asian representatives in the top 10, with 1,708 and 765 tons, respectively.

SJC bought a tael of gold (equivalent to 1.2 troy ounces) at VND33.14 million and sold it at VND33.36 million on Saturday, unchanged from the previous day but down VND430,000 per tael against end-October. Overall, SJC gold has been in the downward trend although it has yet to reach the lowest of this year. 

According to kitco.com, the yellow metal stood at US$1,083.9 an ounce last Friday, a six-year low. The global gold price has declined stronger than that of SJC with the latter being VND4 million per tael higher.

Na Son