Gold ring price hits record high, many Nghe An people make big profits from investing

At the end of last week's trading session, domestic gold prices increased sharply following world gold prices. Accordingly, the listed price of SJC gold bars was VND84-86 million/tael (buy - sell). Compared to the closing price of last week's trading session, the price of gold bars increased by VND1.5 million/tael in both buying and selling directions. The difference between the buying and selling prices of SJC gold was VND2 million/tael.

The price of SJC gold increased, however, the high difference between buying and selling gold caused investors to suffer losses. If buying gold bars on October 13 at VND84.5 million/tael and selling them today (October 20), investors would lose VND500,000/tael.

Meanwhile, last week, the price of gold rings continuously set new peaks. Specifically, this morning (October 20), the listed price of round rings was at 84.7-85.7 million VND/tael (buy - sell).

In Nghe An, the price of gold rings on the morning of October 20 exceeded the domestic price, accordingly, the price of 9999 gold rings was listed at 84.50 million - 87.80 million VND/tael (buy - sell). Compared to the closing price of the previous week, the price increased by 2.15 million VND/tael for buying and 2.25 million VND/tael for selling.

After a week of strong increases, if investors buy gold rings on October 13 and sell them today (October 20), the profit they will receive is 1.1 - 1.2 million VND/tael.

Ms. Nguyen Phuong Oanh, an employee at a gold shop on Tran Phu Street, said: "If a customer bought a gold ring last week and sold it this week, they would have made a profit of 1 million VND/tael. If they invested over 80 million VND, they would have made a profit of 1 million VND in just 7 days. Compared to bank interest rates, it is ten times higher."

If people bought gold 3 months ago, now the profit has increased to 7-8 million VND/tael. Specifically, on July 20, 2024, the price of 9999 gold rings in Nghe An was listed by gold and silver businesses at 76.0 million VND - 79.0 million VND/tael (buy - sell). In today's trading session (October 20), the price of gold rings on the listing boards of gold and silver businesses adjusted sharply, more than 9 million VND/tael. Thus, after 3 months, buyers made a profit of about 6-7 million VND/tael (sell).

This can be considered an attractive profit level, a "golden" time to close profits, however, in general, the gold market in Nghe An at this stage is less active. Because most people are hesitant to wait for gold to increase further when information about the world situation is favorable for gold prices, it is forecasted that from now until the end of the year, gold prices will continue to increase.

Meanwhile, although banks have increased deposit interest rates at the end of the year, the interest rates are still not attractive enough, compared to the gold investment channel, it is many times lower. Therefore, people with idle money still invest in gold rings.

“Except for a few people who need capital to do business at the end of the year, they accept to sell gold to make a profit and use the cash to invest in other fields. As for those who have idle money, they almost do not sell gold at this time, even though compared to before, the gold profit is very good.

In July 2024, I invested all my capital of nearly 6 billion VND to buy gold for storage. At this time, I would have made a profit of nearly half a billion VND if I sold it for profit. However, I have not sold it yet but am waiting for the gold price to increase, and if I sell, there is no more attractive investment channel than gold," said Mr. Nguyen Manh Ph., a resident of Quan Bau ward (Vinh city).

According to gold shop owners, this week because of the October 20 holiday, gold transactions were more active than last week, mainly in gold jewelry for gifts. Meanwhile, gold bar and plain round ring transactions were quite quiet in both buying and selling directions.

According to experts, the world gold price is receiving support from many factors. Among them are escalating geopolitical tensions, a wave of buying and interest rate cuts by central banks, information surrounding the US election..., gold prices are forecast to continue to increase.

In recent consecutive trading sessions, the price of gold rings often fluctuates in the same direction as the world market. Investors can refer to the world market and expert opinions before making investment decisions.

However, analysts also note that the "fear of missing out" (FOMO) mentality is driving investors to gold, which is pushing prices up, but also carries potential risks for future price action. Accordingly, if the FOMO mentality decreases, prices could fall sharply. Therefore, caution is needed when investing in this precious metal.