## The Rapid Rise of Gold Investment Interest in Vietnam

Vietnam's gold market is heating up. Long lines of investors purchasing gold bars have been observed at branches of state-owned banks in Hanoi and Ho Chi Minh City. Major banks such as Saigon Jewelry Company, Agribank, Vietcombank, BIDV, and VietinBank are seeing an acceleration in individual investors buying gold.

This gold buying boom in Vietnam was directly triggered by the central bank's decision to supply gold directly to the market. Traditionally, domestic gold prices were higher than international rates, but with direct sales by banks, price correction is expected to occur.

## The Impact of Price Adjustments on the Market

Numbers tell the story. The price of 1 tael (37.5 grams) of gold in Vietnam hit a record high of $3,620 last month, but has now fallen to $3,107. Banks are permitted to sell at a 1.2% discount from market prices, making this price adjustment a significant buying opportunity for Vietnamese investors.

Several factors underpin this trend. The decline in the Vietnamese dong's value has increased demand for gold as an asset, and the central bank aims to integrate domestic prices with international rates. Some stakeholders are investigating whether illegal factors are involved in this price gap.

## The Potential for Gold Price Increases from a Global Perspective

Vietnam's phenomenon aligns with global gold market movements. In 2024, gold prices surged significantly due to increased geopolitical risks and the demand from central banks worldwide for diversification of reserves.

Experts predict this upward trend will continue. Analyst Jim Rickards forecasts that by 2026, gold prices could reach $27,000. This far exceeds his previous prediction of $17,000.

## What Investor Sentiment Reveals

Vietnamese investors interviewed expressed confidence in the long-term stability of gold's value. As a means of asset preservation and reserve diversification, interest in gold is expected to persist. The gold buying boom in Vietnam is not just a temporary phenomenon but reflects rational investment choices amid global economic uncertainty.