A gold rush in the heart of Hanoi

On the morning of March 19, 2025, Tran Nhan Tong Street in Hanoi’s Hai Ba Trung District - home to many of the city’s top gold retailers - was packed with customers eager to buy gold despite prices nearing record highs.

Domestic gold prices have been rising sharply in line with global trends, now approaching 100 million VND per tael ($4,000 per ounce). Investors and savers alike lined up outside major gold shops, betting on further price increases.

By 11 a.m., Bao Tin Minh Chau, one of Vietnam’s leading gold retailers, listed gold at 98.1 million VND per tael for buying and 99.7 million VND per tael for selling, marking a 500,000 VND increase since the morning. Due to high demand, the store restricted gold bar sales and allowed each customer to buy only half a chi (approximately 1.88 grams).

Customers share their reasons for buying gold

Among the crowd, Nguyen Van Hung, a 60-year-old Hanoi resident, compared the scene to Vietnam’s subsidy era, when people had to queue for basic goods. Using his savings, he decided to buy gold, convinced that prices would soon surpass 100 million VND per tael.

Lan, an office worker from Quang Trung Street, acknowledged the risks but remained optimistic. "Even though gold prices are high, I still chose to buy, hoping for further increases," she said.

Entrepreneur Tuan from Ha Dong had been closely monitoring the gold market and decided to invest long-term. "Gold prices may fluctuate in the short term, but over time, it remains a valuable asset. I believe prices will soon exceed 100 million VND per tael," he stated.

Not everyone was buying. Duc, a resident of Nguyen Trai Street, debated selling his five taels of gold, purchased four months ago at 86 million VND per tael. With the current price, he stood to make a profit of nearly 60 million VND. However, he hesitated, wondering if gold would rise even further. "If I sell now and the price jumps to 100 million VND, I’ll regret it," he said, ultimately deciding to wait.

A mix of buyers and hesitant sellers

Unlike the bustling crowd at Bao Tin Minh Chau, other gold retailers such as Phu Quy, Doji, and SJC saw fewer customers. Some investors remained cautious, wary of market volatility despite the upward trend.

Hoa, a retired teacher from Doi Can, purchased a gold bracelet as a birthday gift for her daughter. "Gold is not just jewelry; it’s a long-term asset," she said. Minh, a 65-year-old from Hoan Kiem, bought a pair of gold rings to commemorate his 40th wedding anniversary, seeing them as both sentimental and valuable.

Experts warn of risks in gold investment

Financial analysts attribute the surge in gold prices to global factors, including geopolitical tensions in the Middle East and the weakening US dollar. Global gold prices have already surpassed $3,000 per ounce, driving up domestic rates.

Experts caution that while gold remains a safe-haven asset, price volatility poses risks. Investors are advised to carefully evaluate market conditions before making large purchases, as corrections could follow the rapid price increase.

Ngoc Cuong