People rush to sell gold to make profit
At 11:30 a.m. on December 25, domestically, the price of SJC gold bars was listed at VND76.4-77.7 million/tael (buy-sell), an increase of VND500,000-700,000/tael compared to yesterday's trading session; the price of 24K gold rings and jewelry gold of all kinds was pushed up to VND62 million/tael for buying, VND63.95 million/tael for selling, an increase of VND50,000/tael compared to yesterday (December 24).
In Nghe An, at the opening of the new week's trading session, the listed gold price at major gold and gemstone companies in Vinh City ranged from VND75.50-75.80 million/tael (buy) and VND77.5 million-77.7 million/tael (sell) for SJC gold bars; while the listed price for plain gold rings was VND6.380-6.410 million/tael (sell) and VND6.1-6.2 million/tael (buy). This is considered a new "peak" of gold prices.
Taking advantage of the high gold price, many people have gone to gold and silver shops to survey the price, and bring gold to sell for profit. After knowing the gold price, Ms. Hoang Quynh Trang (Doi Cung, Vinh City) decided to sell 5 taels of gold at the price of 76 million VND/tael.
Ms. Trang said that she had just bought these 5 taels of gold a few months ago for 65 million VND/tael. Now, at the end of the year, she needed capital to buy Tet goods and realized that the profit was high, so she decided to sell. "Compared to depositing in the bank or investing in stocks, the profit from selling gold is much higher. I urgently need capital at the end of the year, next week, entering 2024, not knowing how the price of gold will fluctuate, so I decided to sell at this time," Ms. Trang said.
According to records, at Kim Thanh Huy gold and silver shop on Cao Thang street (Vinh city), in recent days, the number of customers coming to trade is quite large, standing inside the shop, most of the customers intend to sell gold when the price goes up. Mr. Nguyen Duy Hoa, a customer transacting at the gold counter said: "Last year, I lent 3 taels of gold to a relative, they just returned it last month. Now, seeing that the price of gold is high, I am selling it to invest in business".
At many other businesses, the number of customers coming to make transactions has also increased sharply compared to previous days. According to a survey at gold shops, the number of customers selling is higher than buying at this time. Notably, the amount of gold customers sell is relatively large, from a few taels to dozens of taels/transaction. The reason for this fluctuation is that at the end of the year, many people need cash to "hold" Tet goods, pay debts or mature loans, pay transactions..., while the price of gold is high, so they decide to sell gold to use the cash flow for other purposes.
A representative of the Phu Nguyen Hai brand (Cao Thang, Vinh City) said that the number of customers coming to stores in this system has increased significantly. According to preliminary statistics, by about 11:30 a.m. on December 25, the number of customers increased by about 30% compared to the previous day. According to Ms. Nguyen Kim Thanh, a store employee, the reason for the increase in the number of customers coming to trade is because the price of gold has increased, so they have the mentality of selling to take profit.
Meanwhile, many people are holding gold or waiting for price fluctuations to buy and store, waiting to "catch the new wave". "I have 4 taels of gold stored for a long time, previously planned to sell when gold reached 70 million VND/tael, but now it is over 77 million VND, so I am still hesitant because I did not think gold would increase that much. According to many forecasts, the price of gold will increase to 80-90 million VND/tael in the near future. Therefore, I am not in a hurry to sell my gold reserves and have also prepared some idle money to continue buying", said a customer.
Be careful when investing in gold
For the whole year, the price of SJC gold bars increased by 10.4 million VND/tael. Specifically, from 67.4 million VND (January 15, 2023) to 77 million VND/tael on the morning of December 25. Meanwhile, the price of gold rings also increased by 9.05 million VND/tael, from 55.05 million VND/tael to 64.1 million VND/tael.
The reason for the increase in domestic gold prices is due to the impact of the recent high world price of more than 2,000 USD/ounce, in the context of the USD devaluation. Secondly, due to the context of escalating geopolitical tensions, gold is considered a safe haven. Some banks and investment funds are shifting to a more cautious trend and will invest in gold.
Domestic gold prices increased in the context of the lowest interest rate on savings in Vietnamese dong in many years, the stock market also decreased, and real estate was quiet. Besides, the end of the year is always the time when there is a large demand for gold storage.
Many forecasts show that the price of precious metals in the world market may continue to increase in the next 1-2 months or break the historical peak of 2,080 USD/ounce. This precious metal will record an average price of 2,175 USD/ounce in 2024. After that, the price will decrease to 2,087 USD/ounce in 2025 and 2,000 USD/ounce in 2026.
Although the price of gold is expected to continue to increase, many experts still warn people to be cautious when investing. Because, compared to the converted world gold price, the retail price of SJC gold bars is 16.5-16.6 million VND/tael higher, while the price of gold rings is about 2.6 million VND/tael higher. The difference between buying and selling gold is also up to 1 million VND/tael, so it is very difficult to make a profit.
Therefore, gold should only be considered as a channel to diversify investment portfolio. Because for American investors, the top priority is still stocks, bonds and assets. Moreover, gold prices fluctuate continuously, often going up quickly but also down very quickly, so it is not for non-professional investors.
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