Experts recommend that investors should be cautious when buying gold at this time and should not follow the crowd mentality.
Dr. Nguyen Bich Lam, former General Director of the General Statistics Office, said that individual investors must be extremely cautious when buying gold at this time because the price fluctuates abnormally.
“ Currently, most governments are buying gold to put into national gold reserves. Gold investors to make a profit at this time are very risky. An example shows that in the first and second quarters, when the world gold price increased, it was also the time when geopolitical conflicts were taking place, at this time governments of many countries bought a lot of gold to reserve. However, up to this point, the demand for gold to buy for national reserves by governments of many countries is no longer as strong as before. Therefore, the gold price actually depends only on geopolitical conflicts,” said Dr. Nguyen Bich Lam.
Sharing the same view, expert Nguyen Tri Hieu also advised people not to buy gold unless it is 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 "buy at 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, " said Mr. Hieu.
Gold price is too high, experts recommend not to invest. (Illustration photo).
Regarding the reason for the continued increase in domestic gold prices, Dr. Nguyen Bich Lam commented that the first reason is that geopolitical tensions in the Middle East have prompted investors to buy gold to find a safe haven.
Second, the US presidential election also has investors preparing for more market volatility, sending gold prices higher.
Third, the Fed will lower interest rates, causing the value of the USD to decline, which will affect the price of gold.
According to expert Nguyen Bich Lam, in the coming days, gold prices will continue to fluctuate but in a more subdued trend.
“ When geopolitical conflicts are quite clear, especially when the US presidential election has stabilized and it is determined who will be President, then it will have a strong impact on gold prices, at this time the world gold price will turn around and decrease.
If Donald Trump wins the election, he will trigger a trade war with China and introduce a policy of raising tariffs on Chinese goods and possibly a policy with the European community. This will have a strong impact on the prices of goods, including the price of the USD and the price of gold in the world.
However, at present, gold prices will tend to fluctuate up and down, not just increase," said Mr. Nguyen Bich Lam.
Sharing the same opinion about the recent fluctuation in gold prices, economic expert, Dr. Nguyen Tri Hieu, said that the sharp increase in gold prices, especially gold rings, in recent times is due to the impact of world prices. The world is also affected by geopolitical conflicts, the US presidential election and the Fed changing interest rates in a downward direction.
“The domestic gold bar price is under control so the price is stable, while the gold ring price has increased due to the impact of fluctuations in the world gold price and the high demand for gold by Vietnamese people because gold is considered an asset for storage and savings,” said Dr. Nguyen Tri Hieu.
According to Mr. Hieu, 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 gold.
“This has been going on for over 10 years. In addition, the police have cracked down on many illegal gold trading rings, so the gold supply has become scarce. If the gold ring market continues to have a “fever”, it is likely that the State Bank will have to intervene,” Mr. Hieu commented.
On the morning of October 27, the price of gold rings continued to maintain at a historical peak and reached 89 million VND/tael. The price of SJC gold bars was also the highest in the past 4 months.
Specifically, Phu Quy Gold and Silver Company listed the price of gold rings at 87.9 - 89 million VND/tael for buying and selling.
Bao Tin Minh Chau Company listed the price of round gold rings at 87.48 - 88.98 million VND/tael.
Saigon Jewelry Company listed the price of round rings at 87 - 88.5 million VND/tael.
The price of SJC gold bars is listed by state-owned banks at 89 million VND/tael, while businesses list the price of SJC gold bars at 87 - 89 million VND/tael for buying and selling.
Meanwhile, the world gold price at this time is also listed at 2,747 USD/ounce, equivalent to 83 million VND/tael.
Source: https://vtcnews.vn/gia-tang-manh-co-nen-dau-tu-khi-vang-len-dinh-ar904131.html
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