CaliToday (07/10/2025): Vietnam's domestic gold market witnessed an unprecedented price frenzy this morning as the nationally recognized SJC gold bars shattered all previous records, surging past the historic milestone of VND 140 million per tael.
The dramatic price hike, which has captivated investors and the public alike, is largely driven by a powerful rally in global gold prices. Early Tuesday morning, major state-owned and private jewelry companies across the country uniformly adjusted their listings in response to the international trend. This sent the price of SJC-branded gold bars into uncharted territory, creating a palpable "fever" in the market.
The rally was not confined to the premium SJC bars. Plain gold rings, another popular investment product among Vietnamese citizens, also experienced a meteoric rise. Prices for 24K gold rings jumped by nearly VND 2 million per tael compared to yesterday's closing figures, reflecting the broad-based bullish sentiment sweeping through the market.
Understanding the SJC Premium and "Tael"
For international observers, it is crucial to understand the unique dynamics of Vietnam's gold market. Gold is traded in a traditional unit of weight known as a "lượng" or tael, which is equivalent to 37.5 grams (approximately 1.2 troy ounces).
SJC (Saigon Jewelry Company) is a state-owned brand and the only one permitted by the government to produce gold bars in Vietnam since 2012. This government decree, aimed at stabilizing the market, has effectively given SJC a monopoly. Consequently, SJC gold is trusted implicitly for its quality and purity, and it trades at a significant and often volatile premium over both other domestic gold products and international spot prices. Today's surge has once again widened this gap to a substantial margin.
Market Reaction and Underlying Factors
The record-breaking prices are fueled by a confluence of global and local factors. Internationally, heightened geopolitical uncertainty and concerns about global economic headwinds have increased the appeal of gold as a safe-haven asset.
Domestically, gold has long been a favored store of value for the Vietnamese people, often preferred over holding cash due to historical inflation and a deep-seated cultural affinity for the precious metal. The current price explosion is expected to trigger a wave of activity, with seasoned investors closely watching for opportunities to either profit-take or buy on dips, while many citizens may rush to sell off personal holdings to capitalize on the historic rates.
Analysts are now closely monitoring the response from the State Bank of Vietnam, as such a drastic price increase could have wider implications for the country's efforts to control inflation and manage exchange rates. The current situation highlights the ongoing debate within Vietnam about whether to amend the decade-old policies that restrict the supply of gold bars and contribute to the extreme price premium.