Recently, the price of gold rings has increased dramatically, continuously reaching new peaks and breaking historical records. How can we stop this increase?
The price of gold rings is causing surprise as every day they set a new record, the most expensive in history. Once lower than the price of gold bars by more than ten million VND/tael, the price of gold rings has now followed very closely, anchoring at the highest level of 85.7 million VND/tael (selling price), while the price of gold bars is sold at 86 million VND/tael.
This is the highest record ever, breaking all records that this type of gold had set in previous days.
Economist Nguyen Tri Hieu said that the recent sharp increase in gold ring prices is due to the impact of world prices and because gold bars are being controlled, the price is stable, while gold rings are "subjected" to fluctuations. In addition, the demand for gold by Vietnamese people is still very high because gold is considered an asset for storage and savings.
The recent shortage of gold bars and gold rings may be due to the fact that many people are still holding onto gold and not selling it, waiting for the price to go up to sell. Meanwhile, the State Bank has not made any move to allow gold trading enterprises to import raw gold. This has been going on for more than 10 years. In addition, the police have dismantled many illegal gold rings, so the supply of raw gold on the market is very scarce.
" If the gold ring market continues to have a "fever", I think it is likely that the State Bank will have to intervene ," Mr. Hieu predicted.
To curb the price of gold rings, according to Mr. Hieu, the only way is to improve the supply. If the supply is abundant, the price will decrease. This requires careful calculation by the State Bank.
Mr. Nguyen Quang Huy - CEO of the Faculty of Finance and Banking, Nguyen Trai University, analyzed: Domestic gold ring prices have increased sharply recently, affected by both international factors and the domestic investment context.
Specifically, the situation in the Middle East, the risk of a large-scale war between Israel and neighboring countries, along with the prolonged Russia-Ukraine conflict and tensions on the Korean peninsula, have created global instability. This has prompted investors to seek gold as a safe haven, pushing the world gold price above the threshold of 2,700 USD/ounce, reaching an all-time high. This development has put great pressure on domestic gold prices, including gold rings and gold bars.
In the domestic market, access to SJC gold bars is currently difficult, causing people to switch to buying gold rings, causing demand to increase sharply.
Specifically, the State Bank is currently selling gold bars directly through 4 banks and SJC Company to stabilize prices. As a result, the price has stabilized, there is no longer a "huge" difference compared to the world, but people find it much more difficult to buy than before.
Not only do buyers have to register in advance and meet complicated bank procedures, they also have to wait for many days and are limited in the amount they can buy. Meanwhile, if they buy directly, they can only buy from SJC Company with a limited quantity, while other businesses have long stopped selling gold bars because they are out of stock.
According to Mr. Huy, this situation has caused people to switch to buying gold rings, causing the supply to become increasingly scarce, pushing the price of gold rings up day by day. Many stores have also temporarily stopped selling gold rings and are only buying to increase supply.
Therefore, Mr. Huy believes that one way to reduce the "heat" of gold rings is to increase the supply of SJC gold bars in the market, making it easier for people to access. This will help balance supply and demand between types of gold, reducing pressure on the price of gold rings.
In addition, according to Mr. Huy, it is necessary to promote changes in the hoarding habits of Vietnamese people. Encourage people to switch from the habit of hoarding gold to the mindset of investing in production, business and startups. This not only promotes economic development but also helps to reallocate idle cash flow into areas with higher growth potential.
Should I save gold rings?
According to economic expert Dinh Trong Thinh, plain gold rings were previously popular as gifts, but now many people are looking to buy them to accumulate assets. Because they are bought to accumulate, not to "surf", many people are not worried about buying at the peak. In particular, with many forecasts that the world gold price will not stop increasing, people believe that domestic gold prices will benefit.
According to him, people should not buy and sell gold in large quantities during this period because the price movement is still complicated and unpredictable. " For buyers, if the price is too high, it is difficult to avoid the psychology of following the crowd. For sellers, gold rings are scarce, so they can sell now but it will be difficult to buy later," he said.
Gold expert Tran Duy Phuong also said that people should not buy gold if it is not really necessary. Those who bought gold before and made a profit should also consider selling when they have achieved the desired profit.
" Buying domestic gold at this time is very easy to "catch the peak" if the world price reverses and plummets in the short term. If you sell to take profit and the price continues to increase, you won't regret it because the profit from gold rings since the beginning of the year is 25-30%, which is an attractive level ," Mr. Phuong advised.
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