Gold suffers collateral damage after diamond price fluctuations in Vietnam

The selling pressure on diamonds has spread to the gold market, causing many people to sell their gold over the past two days, driving prices down sharply and pushing the buy-sell spread to unprecedented levels.

In recent days, the domestic gold market has experienced several sharp downward adjustments. Within just three days, the price of gold fell by approximately 8.5 million VND per tael, with SJC and PNJ gold bars experiencing the deepest declines. This development occurred after authorities announced the discovery and handling of a large-scale diamond smuggling ring. Investigators determined it was linked to former leaders of P-Lab Company (a subsidiary of PNJ) and the Head of Sales at SJC Company.

Besides selling diamonds, many customers are also selling gold bearing the PNJ and SJC brands. With the gold price on July 24th, those who bought gold earlier could lose approximately 13.5-14.5 million VND per tael if they sell it now. According to experts, the sharper drop in domestic gold prices compared to world gold prices is mainly due to a sudden surge in selling pressure. In response to market fluctuations, businesses have widened the buy-sell spread.