Domestic gold prices have fluctuated over the past few days. The price of SJC gold bars at major gold and silver trading enterprises has simultaneously exceeded 69 million VND/tael. Having held dozens of taels of gold since the beginning of the year, many investors are wondering whether they should sell at this time.
Ms. Thanh Ha (in Ha Dong, Hanoi) said she bought 10 SJC gold bars on the occasion of God of Wealth's day earlier this year for 67.3 million VND/tael.
Up to now, when the selling price of gold is over 69 million VND/tael, but the buying price is only over 68.3 million VND/tael, Ms. Ha is wondering whether she should sell to "take" profit or wait longer?
“If I sell now, I will make a profit of about ten million dong. Will the price of gold increase from now until the end of the year?”, Ms. Ha wondered.
Commenting on gold prices and sharing his investment views, in an interview with VietNamNet reporter, economic expert Nguyen Tri Hieu said that gold prices are expected to continue to increase.
“Investors who want to manage risks with certainty and want to close profits can sell now. The problem is that they have to set a closing level, so that even if the price continues to increase, they will still sell,” said Mr. Hieu.
Further analysis, the expert said, the increase in world gold price affects domestic gold price. Currently, gold price has exceeded 69 million VND/tael, the level of 70 million VND/tael can be reached.
“I never advise investing in gold. If you invest in gold, it should be within 1 year. But in a short investment period, just a few weeks, it is very dangerous, you should not invest.
In particular, never “put all your eggs in one basket”. Although the domestic gold price is on the rise, pouring all your savings into gold is very dangerous. You should allocate risks to many investment channels; including banks, gold, stocks, real estate. At this time, if you invest in gold, you should divide 1/3 of your savings to invest. In particular, never borrow money to buy gold,” experts advise.
Also giving advice: "If you have gold at this time, you should sell it immediately", sharing with VietNamNet, economic expert Dinh Trong Thinh commented that the price of gold will decrease in the near future.
Mr. Thinh said that the domestic gold price is “connected” to the world gold price. The world gold price is directly affected by the value of the USD. Recently, the USD has gone up and down; basically, the price is going up. Therefore, the world gold price will go down.
“However, the price of gold in Vietnam has recently increased. The reason is that the domestic gold price is linked to the value of the USD; while the US Federal Reserve (Fed) kept the highest interest rate in 22 years, at 5.25 - 5.50%. Therefore, the USD Index increased above 105.5 points, meaning the USD will increase.
Meanwhile, Vietnam has been implementing a policy of reducing interest rates; this move is monetary expansion. Therefore, many people buy USD; buy gold to keep the value of their Vietnamese Dong. Meanwhile, the demand for gold increases, but the supply remains the same, leading to the increase in domestic gold prices in the past few days," expert Dinh Trong Thinh further analyzed.
However, the expert said that from now until the end of the year, the value of the Vietnamese Dong will be stable compared to the USD.
“From the beginning of the year to the end of August, the value of the Vietnamese Dong only decreased by 1.66% compared to the USD. Therefore, by the end of the year, if the Vietnamese Dong increases or decreases in value compared to the USD, the whole year will only increase or decrease by around 2-3%.
The value of the Vietnamese Dong against the USD will certainly be stable. The exchange rate between the Vietnamese Dong and the USD will change and fall below the current price level. In the future, the decrease in the USD price will naturally lead to a decrease in the gold price,” Mr. Thinh commented.
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