Gold prices rise, the gold market in Nghe An gradually warms up.
During last week's trading session, world gold prices fluctuated continuously, domestic gold prices rose sharply, and gold trading in Nghe An province became active again.
At the close of last week's trading, the price of gold on the world market settled at $2,513 per ounce, an increase of $6 per ounce compared to the previous week. During the week, the precious metal on the international market fluctuated wildly, reaching a new historical peak above $2,530 per ounce before plummeting to $2,470 per ounce due to profit-taking pressure from investors.
While global gold prices fluctuated, domestic gold prices showed only slight changes. Accordingly, SJC gold bars closed the week at 79 million VND/ounce for buying and 81 million VND/ounce for selling, an increase of 1 million VND/ounce compared to the end of the previous week.
The price of 24K gold rings and jewelry increased by only 100,000 - 200,000 VND/ounce for the buying price, but remained unchanged for the selling price, reaching 77.1 - 78.4 million VND/ounce (buying price - selling price).
In Nghe An province, a survey conducted on the morning of August 25th showed that the listed price of gold rings ranged from 76.2 - 77.2 million VND/ounce (buying price) and 78.4 - 79.5 million VND/ounce (selling price). The price difference between gold and silver businesses reached up to 1 million VND/ounce. The price of gold rings increased slightly, closely following the fluctuations of world gold prices; therefore, many people chose gold rings as an investment and store of value.
Regarding her choice to buy plain gold rings for safekeeping, Ms. Nguyen Thi Tuyet Tr. (Do Luong town) said: “With 300 million VND in spare cash, after considering whether to keep it in a savings account or buy gold for safekeeping, I decided to buy 4 taels of plain gold rings, divided by weight (1 tael, 3 taels, 5 taels, and 10 taels) so that it would be easier to sell when needed.”
Meanwhile, many people are choosing this time to take profits, so there are quite a lot of people selling gold. “Currently, we are buying plain gold rings at 77.2 million VND/ounce, the highest price since the beginning of the year. Some people need capital to hold onto their gold until the end of the year, and some people see a profit so they are selling to lock in their gains.”
"Over the past week, there have been quite a lot of people coming to sell gold, and the amount of gold the shop buys has increased by about 30% compared to the previous week," said Mr. Hoang Ngoc Hoa, an employee at a gold shop on Cao Thang Street (Vinh City).
In June 2024, Mr. Nguyen Duy Phuc H. asked a relative to purchase 6 taels of SJC gold bars for him at the price offered by the state-owned commercial bank Agribank, which was 76.98 million VND per tael. Recently, needing money to pay for goods, but due to the low price of gold bars and the suspension of transactions at gold shops in Nghe An, he had to borrow money from relatives at a high interest rate to cover the cost.
With the price of gold bars rising, many gold and silver businesses in Nghe An are buying gold bars again, so Mr. Phuc H. decided to sell all 6 taels to pay off his debts. Mr. Phuc H. said: "Calculated, each tael yields a profit of 2 million dong. I invested 460 million dong, and after 2 months, I earned a profit of 12 million dong. Compared to depositing money in a bank, the interest earned is many times higher."
For those who invest at the right time, avoid buying at the peak, and know when to take profits, gold remains the most effective investment. At the same time, if you consider gold only as a store of value, you must invest for the long term. Because, even though gold prices are currently rising and the price of gold bars is on the recovery path, short-term purchases can easily lead to losses.
"If you bought gold bars at the end of last week for 80 million VND/ounce and sold them today, August 25th, you would lose 1 million VND/ounce. Similarly, if you bought gold rings on August 18th for 78.5 million VND/ounce and now sell them for 76.5 million VND/ounce, you would lose 2 million VND/ounce."
"The reason is that the spread between buying and selling gold is so high that buyers can easily suffer losses in the short term," shared Ms. Nguyen Thi Huong, owner of a private gold and silver business on Le Loi Street (Vinh City).
Regarding the gold price trend for next week, both analysts and investors expect gold prices to continue rising after holding firm at the 2,500-point mark, the highest price level since the beginning of the year. A Kitco News survey of 12 Wall Street analysts showed that 58% predicted further increases, only 17% believed prices would cool down, and the remaining 25% predicted prices would remain stable.
