Diamond Panic Sparks Gold Price Drop in Vietnam

The Vietnamese gold market has experienced a sharp decline in recent days due to a surge in selling pressure, particularly among diamond sellers. According to reports, many people have rushed to sell gold over the past two days, driving prices down sharply and widening the gap between buying and selling prices to an unprecedented level.

The downturn is attributed to authorities' announcement that they had uncovered and dismantled a large-scale diamond smuggling ring, which involved former executives of P-Lab, a subsidiary of PNJ, and the head of the business department at SJC. As a result, many customers have sold PNJ- and SJC-branded gold, with those who purchased gold earlier incurring losses of around VND13.5 million to VND14.5 million per tael.

The gap between buying and selling prices has widened significantly, with gold traders increasing the spread in response to market volatility. In an effort to manage transactions, SJC has implemented a policy where customers who complete procedures before 3:00-4:00 p.m. receive payment the same day, while those who wait longer must pay the following day due to bank transfer authorization procedures.

PNJ has also changed its payment policy, requiring diamond buybacks between 3:00 p.m. and 5:00 p.m. each day, with customers choosing cash payments receiving installments over four months. The Vietnam Gemstone Jewelry Art Craft Association (VGJA) has warned of payment delays as some major companies suspend operations.