Gold prices are sky high, why do Vietnamese people still like to buy?

According to many economic experts, gold is considered a safe asset, protecting value and even increasing in price against inflation and economic fluctuations.

Economist, Associate Professor, Dr. Ngo Tri Long said that other investment channels at this time are not really effective, in which the real estate investment channel is still gloomy, not yet bright, the stock market is not "green", investment has not shown efficiency, and production and business are facing many difficulties. The investment channel of saving in banks has very low interest rates,

“The Vietnamese mentality is to like buying gold, because gold is an asset, easy to buy, easy to sell. Second, the world gold price trend is forecasted to continue to increase. In investment, investors must find opportunity costs. Therefore, they rush to invest in places that bring the best opportunities. Meanwhile, the demand for gold is high, but the supply is limited. Therefore, Vietnamese people like to invest in gold even though the gold price is currently very high,” expert Ngo Tri Long said.

Gold is a valuable and liquid asset, so Vietnamese people always want to buy gold despite the high price. (Illustration photo).

According to expert Ngo Tri Long, not only in Vietnam, but also in the world, gold has a very important meaning and role in the global financial system and is a strategic reserve asset. Many central banks still hold gold in their foreign exchange reserves.

During political conflicts, gold becomes more prominent, helping to protect the value of investors' assets when currencies are devalued.

“Thanks to its high liquidity, gold is also one of the tools to diversify investment funds' portfolios, minimizing overall risks. During economic crises, gold can also be used as a backup means of payment.

So even though it does not play a direct role in the daily monetary system as before, gold still holds a very special position in the global economy as well as in Vietnam. expert Ngo Tri Long said.

Sharing the same view, economist Nguyen Tri Hieu analyzed that gold hoarding has become a habit deeply ingrained in the subconscious of Vietnamese people. Because it is like a form of “financial insurance” for the family.

"For thousands of years, in Vietnam, gold has been considered a means of payment, accumulation, and investment. Especially, through the war period and the years of economic recession and slow development, gold still retains its value. Therefore, investing in gold is the safest investment channel, even better than bank deposits.

If you deposited 100 million VND in the bank 20 years ago without withdrawing it, then when you withdraw it now, the real value will certainly decrease due to inflation. Meanwhile, if you bought gold with that 100 million VND 20 years ago, you would have made a big profit. Therefore, saving gold is a good investment channel." Mr. Hieu said.

Mr. Hieu commented that gold is an asset that not only retains its value but also increases in value over time. Although it can decrease, it is only in a short period.

“In the long term, gold prices always increase and increase very strongly, as evidenced by the fact that in the past 10 years, especially at the end of 2024, gold prices have continuously increased "hotly" and reached 92 million VND/tael. However, in recent days, gold prices have exceeded 92 million, reaching more than 100 million VND/tael. This development has further stimulated people to hoard gold,” expert Nguyen Tri Hieu said.

In terms of payment function, gold has very high liquidity. Because it can be divided into gold coins, gold bars for payment, exchange and trading, it is very suitable for the preferences and needs of Vietnamese people.

“In addition, for those who do not have life insurance, freelance workers who do not have a salary when they retire, saving gold is a safe and best type of insurance for these people. Because it is a safe reserve when needed when they are old, sick or spending. Therefore, it is a type of self-insurance when they do not have life insurance, social insurance and those who do not have a salary,” expert Nguyen Tri Hieu said.

In particular, in addition to its economic significance, in Vietnam and other Asian countries, gold also has an important meaning in spiritual life. For example, gold is often used as a dowry in weddings or bought as a lucky charm on the occasion of the New Year.

Meanwhile, Mr. Dinh Nho Bang, Vice President of the Vietnam Gold Association, also said that gold plays a relatively special role in the economy as well as the culture and life of Vietnamese people.

“Vietnamese people not only consider gold a valuable asset, but many also believe that gold has spiritual and feng shui significance. Therefore, gold often appears during holidays, weddings, and important events. People also give gold to each other as a precious gift symbolizing trust and respect,” Mr. Bang cited.

According to Mr. Bang, through many historical periods, in addition to being a symbol of wealth, power and luck, gold is also a safe reserve asset for anyone, helping them overcome difficult economic fluctuations.

“Although the economy has developed and the financial system has improved, gold still plays an important role in the goal of preserving assets and is a safe investment channel. Therefore, many people believe that there must always be gold in the house. That has been an ancient concept, formed over many generations and is not easy to change." Mr. Bang said.

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