Gold price 'shockingly' increases, Nghe An people hesitate to trade
(Baonghean.vn) - At the end of this morning's trading session, gold prices continued to set record levels for both gold bars and plain rings. Gold shops were crowded with people, but they mainly came to survey prices and grasp the situation, with few transactions taking place...
On the morning of March 3, along with the developments in the domestic gold market, gold prices in Nghe An were adjusted up by gold and silver businesses. Accordingly, the price of SJC gold bars was listed at around 77.50 million VND/tael (buy) and 82 million VND/tael (sell); 9999 round gold rings were 65.0 million VND/tael (buy), 68.50 million VND/tael (sell).
Compared to the closing price of the previous week, the price of gold bars increased by 1.2-1.3 million VND/tael for buying and increased by 1.5-1.7 million VND/tael for selling (depending on the brand). It is worth noting that the difference between the buying and selling price of SJC gold increased from 2.2 million VND/tael to 2.5 million VND/tael.
The price of gold has continuously increased and has reached a peak when it surpassed the 81 million VND/tael mark. However, according to the confirmation of gold shop owners, in Nghe An, gold transactions are quite quiet. When gold fluctuates, many people and investors come to survey, see the price, grasp the developments and market situation, but there are only small transactions, no large purchases and sales, so the market does not fluctuate much.
Ms. Ngoc Anh, an employee of a private gold and silver business on Cao Thang Street, said: “The number of customers visiting the store has increased sharply, especially on the last two days of the week. However, the number of customers buying and selling has decreased compared to last week. The main reason is people's hesitation when seeing the sharp increase in gold prices. Those who intend to buy for investment find the gold price too high so they hesitate, while those who intend to sell are afraid that the gold price will increase further so they wait for the price.”
Although the price of gold has increased sharply, surpassing an unprecedented high, only those who bought long-term investments before that have made a profit. Mr. Trinh Hung Cuong, a gold investor in Sa Nam town (Nam Dan) said: “When the real estate market calmed down and bank interest rates were low, I poured all my capital into buying gold for storage. I am not a professional gold investor, I only buy gold to keep my money from depreciating. I bought gold in mid-2022, when SJC gold bars were priced at 67 million VND/tael.
After nearly 2 years, the gold price skyrocketed to 82 million VND/tael. If I sell now, I will make a profit of 15 million VND/tael. However, according to forecasts, the gold price will continue to increase, so I only sold half of the gold I invested to get capital to rotate business, and the other half is still stored, waiting for the gold to reach a new milestone before deciding whether to sell or not.
Meanwhile, short-term investors who have just bought gold since after Tet, even though the price of gold has increased, still only sell at break-even, or even at a loss. The reason is that the difference between buying and selling is too large, up to 2.5-3.5 million VND/tael.
Ms. Tran Quynh Hoa, a customer, said: “After the full moon of January, I saved up money to buy 4 taels of gold, including 2 taels of gold bars and 2 taels of 9999 smooth round rings. Compared to that time, the price of gold has increased by nearly 4 million VND/tael at the purchase price.
However, if I sell it, I will still lose 800 - 1.3 million VND/tael due to the high difference between buying and selling. At that time, I bought SJC gold bars for 78.8 million VND/tael, but now if I sell them, I will only get 77.5 million VND/tael. It is a loss, so even though the gold price increases, I am not in a hurry to sell them until I need money."
According to forecasts, from now until the end of the year, the world gold price will increase. Therefore, the price of gold rings will fluctuate around 70 million VND/tael; the price of SJC gold, if there is no measure from the State Bank, the price may increase to 85 million VND/tael; even 87 million VND/tael.
However, according to experts' recommendations, at this time, investors who bought gold before Tet, now, if the profit rate is 2 million VND/tael, should sell to take profit. And according to analysis, because the price of SJC gold bars is having a high difference with the world gold price, it is not known when the State Bank will intervene, so the risk is quite high.
Therefore, according to experts' advice, people who want to buy for storage or investment should choose 9999 gold, which is safer, but they need to choose the right time to "put down money".