Gold price skyrockets again, Nghe An people don't know whether to buy or sell

According to a survey by PV, the price of gold on the morning of August 18 in Vinh City increased by 2 million VND/tael compared to August 17 and was at the highest level in the past week.

Gold price in Vinh City increased by about 2 million VND/tael on the morning of August 18. Photo: QA

Specifically, the price of SJC gold on the morning of August 18 was at 56 - 56.6 million VND/tael for buying and 58 million VND/tael for selling, while on August 17, the price of SJC gold was 54 million VND/tael for buying and 56 million VND/tael for selling.

For 9999 gold, this morning the price was 5.25 - 5.3 million VND/tael for buying and 5.4 - 5.5 million VND/tael for selling, an increase of about 200,000 VND/tael compared to August 17.

According to gold shop owners, this is the highest price since gold peaked at 62 million VND/tael on August 7 and there are no signs that gold will decrease in price.

Although the price of gold is very high, however, according to records, the number of people trading is still very low, and gold shops are always deserted like the previous days.

People trade gold in Vinh City. Photo: QA

Ms. Nguyen Thi Hoa - owner of a gold shop in Vinh City said: "Gold prices in August were very volatile, up and down every day, every hour, so in the early days, there were still many people coming to consult prices and make transactions, but later on, there were fewer and fewer people, people are tending not to want to bet on gold anymore because of the many risks. As for us, because we work in this profession, we also have to depend on the market, taking profits and losses...".

According to the survey, the amount of gold people are selling at gold shops is not much, or they are waiting for it to be cheap to invest or even higher to sell. On the contrary, very few people buy gold at this time because the price is high, people's income has also decreased sharply due to the impact of the pandemic, except for force majeure, people buy gold at this time.

Whether to buy gold for investment at this time is probably a question for many people because other investment channels are quite deadlocked. However, gold investors expect a new wave as high as a few weeks ago (over 60 million VND/tael) to sell or below 50 million VND/tael to buy. With the current gold price, those who have a lot of gold from previous years can still make a profit if they sell.

According to Dr. Nguyen Minh Phong, consumers need to carefully consider four factors when looking at the domestic gold market. First, the high difference between the buying and selling prices (up to millions of dong compared to the normal cost of a few tens of thousands of dong); Second, the difference between domestic and foreign prices by several hundred thousand dong (the domestic gold price increase rate is higher than the world price); Third, too many price adjustments on the electronic board (gold prices change many times/day); Fourth, the rapid price decrease every time the State Bank announces its readiness to sell gold to intervene in the domestic gold market...
In fact, when one or more of the above identifying factors appear, it means that the domestic gold price is being strongly affected by psychology; at that time, people should not buy gold, because they will be at risk.

Gold shops were deserted on the morning of August 18. Photo: QA

The world gold price is forecast to continue its long-term upward trend as countries are facing many uncertainties, including the Covid-19 pandemic. The outlook for the world economy remains quite bleak. In addition, investors are also concerned about another crisis, which is believed to be the result of unprecedented bailouts by most countries in the world (to combat the impact of Covid-19).

Some experts believe that gold could hit a new all-time high as soon as the US government reaches a consensus on a significant stimulus package. The volatility surrounding the US presidential election will also drive investors to gold.