Gold prices have been falling sharply since the US presidential election. Meanwhile, banks' demand for capital has increased, sparking an interest rate race.
Gold no longer has momentum to increase in price
After the US presidential election ended with Donald Trump's victory, the financial markets continued to be affected, and precious metals were no exception. With gold, it conquered the price zone above $ 2,700 per ounce - a record high last month and stayed there for many days. However, gold began to show signs of cooling down, falling continuously to $ 2,660 / ounce at the end of this week.
Thus, gold has dropped by 100 USD per ounce after Mr. Donald Trump was officially re-elected as President of the United States, equivalent to a decrease of about 3 million VND per tael converted according to Vietcombank's selling rate. The decline in world gold prices has affected domestic gold prices, with the adjustment starting from November 7, but with a much "more intense" amplitude.
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| Have idle money, buy gold to store or save in the bank now? |
The price of gold bars and plain rings has been continuously decreasing hourly. At the end of this week's trading session, the price of SJC 9999 gold rings was bought at VND82 million/tael and sold at VND84.8 million/tael. To make it easier to imagine, an investor could have lost up to VND7 million/tael of gold after only 1 week if he bought 1 tael of SJC gold at the beginning of the week at VND89 million/tael and sold it today (November 10) at VND82 million/tael due to the difference between buying and selling.
Forecasting the general trend of world gold prices, Kitco News survey said that out of 14 analysts asked, 9 people (64%) predicted that gold prices will continue to fall next week. Only 3 experts (21%) expect prices to increase and 2 people (14%) maintain a neutral view.
" In contrast to gold, many risk assets are starting to benefit from the potential impact of future policies under President Trump. So we have been pulling money out of the metal and into these alternatives," said Alex Abkarian, CEO of Allegiance Gold. Like Alex Abkarian, many are pessimistic about the outlook for gold prices as risk assets gain ground after a Trump victory.
Savings interest rates race to increase
In the context of gold sliding and gradually losing momentum to increase prices, saving at the present time is the investment channel chosen by many people. In recent weeks, a series of banks have introduced new interest rates with sharp increases, some up to 9.3%/year for a 12-month term, far exceeding the average level at the beginning of the year.
This also shows the trend of shifting and diversifying asset and investment risks. The global currency market is still fluctuating violently from major events. In addition, the end of the year is when the demand for loans from people and businesses increases, causing banks to also need to "import" more money, partly to take advantage of boosting credit growth in the fiscal year.
In addition, the State Bank is tightening the use of short-term mobilized capital for long-term lending, which is also a reasonable explanation for banks' strategy of increasing interest rates for long terms.
Faced with unpredictable changes in the financial and currency markets compared to the beginning of the year, the most sought-after question right now is whether to buy gold for storage or deposit money in the bank to earn interest?
The choice between the two traditional investment channels has its own advantages and disadvantages, suitable for each person's perspective and financial goals. However, there is an existing truth that for the elderly, they always prefer to store gold to feel safe and above all... to admire. If considered from a long-term perspective, the price of gold is always a reliable "shelter", always maintains its value and even increases in price, so it is often paid more attention by "older" investors.
However, the young people's point of view is very different. Putting all the eggs in one basket, and having to keep and maintain that "basket" every day can cause insecurity, invisibly creating difficult problems and worries for many people.
In addition, along with the development of the socio-economy, the market has now expanded to more investment channels, more flexible and can easily meet the financial needs of each person. If investing in gold, they need to determine that there is no passive cash flow, all daily living expenses must be covered by other sources of income (because the nature of gold is a long-term investment and slow liquidity).
Meanwhile, if they invest in real estate, they can completely use it for rent to create an additional passive income stream. Or, in the midst of high bank interest rates due to competition for capital mobilization, saving can be an attractive option to increase income safely and regularly.
The only downside to depositing interest is that the value of money can be affected by inflation. However, in the context of Vietnam's macroeconomic stability, inflation is controlled thanks to the Government's efforts in policy management, this risk is not worth worrying about.
Source: https://congthuong.vn/co-tien-nhan-roi-mua-vang-cat-giu-hay-gui-tiet-kiem-ngan-hang-luc-nay-357975.html
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