On November 22, Ho Phuong Thao in Hanoi decided to buy two SJC gold taels at the price of VND71.92 million per tael.

Thao had to buy gold when the price was high because she had to pay back the gold she borrowed 10 years ago to buy a home.

In late 2013, Thao and her husband bought an apartment after borrowing VND300 million from a bank and two gold taels from a relative. At that time, the gold price was just VND35.4 million per tael.

“The lender called me last week and asked to pay the debt as soon as possible,” she explained. “We were surprised as the gold price increased by twofold compared with the time of borrowing."

Phan Van Dang in Ha Dong district, Hanoi, also said he has been put on tenterhooks as the gold prices have skyrocketed.

Dong bought gold twice in the past to buy homes. At first, he borrowed four gold taels to buy an old house. The second borrowing was in mid-2020, when they decided to sell the old house to buy an apartment. However, the money they got from the sale of the old house and their savings was not enough to buy the apartment, so he had to borrow 3 taels of gold more.

If they pay back the seven taels of gold now, the total amount of money they have to pay would be around VND500 million, much higher than the value of VND310 million of seven gold taels some years ago.

2023 is considered a year of failure for gold. The gold price has fallen the most sharply in the last three decades and the precious metal is no longer appreciated by investors.

At the first trading session of 2013, SJC gold price was quoted at VND45.7-46.32 million (buy and sell). But at the last trading session of the year, gold was traded at VND34.7-34.78 million only. This meant that just within one year, the gold price decreased by VND11-11.54 million and put and end to the upward trend in gold prices which lasted 12 years in a row.

In 2014-2015, gold prices were relatively stable with mild increases and decreases. SJC gold closing price in 2015 stood at VND32.75 million (sell), down VND2.45 million compared with the VND35.2 million per tael in 2014.

In 2016, the gold prices bounced back, ending the downward trend which lasted from 2013 to 2015. The year-end closing price was VND36.25 million (sell), a decrease of VND3.35 million per tael compared with the first trading session of the year.

Two years later, the gold prices hovered around VND35.13-36.64 million per tael (sell). The gold price hit its peak of VND37.5 million on September 9, 2017.

In 2019, the gold prices began increasing steadily. In early 2019, the gold price was VND36.58 million per tael, while it soared to VND42.6 million in the end of the year, which meant a sharp rise of 16.5 percent (VND6.02 million).

In 2020, the Covid-19 pandemic dealt a strong blow on the global economy. The gold price soared from VND42.75 million per tael to VND60.32 million on August 9. The price was quoted at VND56.1 million at the end of the year, up VND13.35 million compared with the beginning of that year.

And the prices have been increasing since 2021. At the first trading session of 2021, gold was traded at VND56.7 million and at the last session at VND61.45 million (+VND4.75 million). In 2022, the price increased by another VND4.9 million per tael to VND66.7 million.

Experts said the gold prices are impacted by the pandemic, high inflation, monetary policy and dollar appreciation.

The upward trend continues in 2023 with the gold price rising from VND67 million per tael to VND72 million on November 22.

As such, the gold price has surged by VND37.14 million per tael over the last decade (2013-2023), or 107 percent, from VND34.78 million to VND72 million.

According to economist Nguyen Tri Hieu, the gold price is being torn by two contradictory factors. The US dollar value is still high, which is a force to take gold price down. However, high inflation in the US could cause the prices to go up.

Tam An