Why is the price of gold rings increasing?
As of 11:00 a.m. on April 11, the price of SJC gold bars and world gold tended to decrease slightly. Specifically, the world gold price listed on Kitco was at 2,339.1 2,348.8 USD/ounce. Compared to the opening of the trading session yesterday morning, the world gold price decreased by 9.7 USD/ounce.
SJC gold price is listed at 82.1-82.5 million VND/tael (buy) and 84.3-84.5 million VND/tael (sell).
As for gold rings, as of 11:00 a.m., the price of plain round gold rings was listed at 76.88-78.48 million VND/tael for buying and selling. Compared to the opening of yesterday's trading session (April 10), the price of plain round gold rings was adjusted by brands to increase by 500,009-900,000 VND/tael for buying and by 800,000-1 million VND/tael for selling.
In Nghe An, gold ring prices are listed by gold and silver businesses at 73.8 million VND/tael (buy) and 78.5 million VND/tael (sell).
Accordingly, in 3 consecutive days, the price of gold rings increased by more than 5 million VND/tael and in nearly 2 months, the price of gold rings increased by nearly 15 million VND/tael. The price of gold rings is considered to have "shockingly increased", "hotly increased", "increased crazily" when it continuously set new records.
The reason why the price of gold rings has been continuously increasing is due to the following reasons: First, the sharp increase in world gold prices has affected domestic gold prices. Second, the demand for gold is based on crowd psychology. Third, the supply of gold is scarce because the State Bank has not allowed gold imports for more than 10 years. Fourth, it is possible that the scarcity of gold and the high demand have caused some businesses to push up prices.
In addition, due to the high price of SJC gold bars, the difference between the price of gold bars and gold rings sometimes reaches 10-15 million VND, the difference compared to the world gold price is about 12 million VND/tael. Therefore, many people are concerned about the risk when investing in gold bars.
In particular, after the news that the State will tighten gold management and abolish the monopoly of SJC gold bars, people and gold investors are worried that the price of gold bars will decrease sharply in the future. Therefore, they have switched to investing in gold rings, and many people have even rushed to sell gold bars to buy gold rings for storage. This has heated up the gold ring market and pushed the price of gold rings up.
Ms. Nguyen Thi Ngoc Mai, an employee of a gold and silver business on Cao Thang Street (Vinh City), said: “For nearly a month now, transactions of 9999 round, smooth gold rings have increased dramatically, accounting for 80% of transactions at the store. Most of them are buyers. Meanwhile, SJC gold bars have almost stopped selling, most of the customers come to sell gold bars, then reinvest by buying gold rings.”
Should I invest in gold bars or gold rings?
Currently, when other investment channels such as stocks and real estate have not brought expected profits and savings interest rates have continuously decreased, the demand for buying and investing in gold has increased. Therefore, according to experts' forecasts, by the end of this year, the world gold price may increase to 2,600 - 3,000 USD/ounce, causing the domestic gold ring price to reach more than 80 million VND/tael.
At the same time, experts advise that the gold price is very "hot", so do not rush to invest all your capital in gold. You should closely monitor information from channels, statements, actions of the Government, the State Bank and the latest developments from the market. In particular, in this "gold fever", investors absolutely should not borrow money to buy gold. Because when the gold price suddenly drops, borrowers will simultaneously face heavy pressure from losing money and paying debts.
Regarding the rush to hoard gold rings, Mr. Nguyen Duy De - Director of the Agribank North Central Gold Branch said that people should not rush to sell gold bars to hoard gold rings. Because currently, although the price of gold bars has not increased sharply, it is still stable. Meanwhile, the price of gold rings has increased rapidly. In case investors want to buy gold rings, they can wait for the adjustment period to decrease by about 5-7% compared to the current level to be able to buy.
Gold bars and gold rings both have characteristics suitable for storage and investment. Buying gold rings or gold bars must be based on the purpose of each customer. Depending on the time, people can choose gold rings or gold bars for investment. And gold bars and gold rings both have their own advantages and disadvantages.
While the gold market is heating up, customers should buy and sell gold at reputable gold trading units. When buying, they must ask the selling unit to issue a red invoice and write down the full serial number to avoid unnecessary losses.
Advantages and disadvantages of gold bars and gold rings:
- About quality: Gold bars have better quality than gold rings. Because when mining and producing gold bars, there are less impurities mixed in. It is a solid piece of gold, with a pure gold content of 99.99%.
- Regarding price: Gold bars are usually more expensive than gold rings, so the profit when selling is also higher. Meanwhile, gold rings have a lower price than gold bars but are closely related to the world gold price.
- Regarding long-term storage: Gold bars are more stable and have higher prices, so they are suitable for long-term investment. Gold rings have investment and storage value, but are often chosen for short-term or swing investment.
- About the purpose of use: Gold bars are often used for storage or as gifts. Gold rings can be used flexibly, both for storage and as jewelry.
- Regarding the amplitude compared to the world price: Gold bars have a very large difference, at times the difference is up to 20 million VND/tael. Meanwhile, gold rings often follow the world gold price more closely.
Thus, buying gold rings or gold bars depends on many factors, depending on the conditions and needs, customers can make the appropriate choice.
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