Gold prices surge dramatically, causing hesitation among residents of Nghe An province.
(Baonghean.vn) - At the close of trading this morning, gold prices continued to set record highs for both gold bars and plain gold rings. Gold shops were crowded, but mostly people were checking prices and gathering information; few transactions took place…
On the morning of March 3rd, in line with the domestic gold market, gold prices in Nghe An were adjusted upwards by gold and silver businesses. Accordingly, SJC gold bars were listed at around 77.50 million VND/ounce (buying price) and 82 million VND/ounce (selling price); 9999 gold rings were priced at 65.0 million VND/ounce (buying price) and 68.50 million VND/ounce (selling price).
Compared to the closing price of last week's trading session, the price of gold bars increased by 1.2-1.3 million VND/ounce for buying and 1.5-1.7 million VND/ounce for selling (depending on the brand). Notably, the difference between the buying and selling price of SJC gold increased from 2.2 million VND/ounce to 2.5 million VND/ounce.
Gold prices have been continuously adjusting upwards and have peaked at over 81 million VND/ounce. However, according to gold shop owners in Nghe An, gold trading has been quite sluggish. When gold prices fluctuate, many people and investors come to survey, check prices, and understand market developments, but only small-scale transactions occur, with no large-scale buying or selling, so the market remains relatively stable.
Ms. Ngoc Anh, an employee at a private gold and silver business on Cao Thang Street, said: “The number of customers visiting the shop has increased sharply, especially on the last two days of the week. However, the number of customers actually buying and selling has decreased compared to last week. The main reason is the hesitation of people when they see the price of gold rising sharply. Those intending to buy for investment see the price as too high and hesitate, while those intending to sell are afraid that the price will increase further, so they wait for the price to rise.”
Despite the sharp rise in gold prices, surpassing unprecedented highs, only those who had invested long-term beforehand have profited. Mr. Trinh Hung Cuong, a gold investor in Sa Nam town (Nam Dan district), said: “When the real estate market slowed down and bank interest rates were low, I poured all my capital into buying gold for safekeeping. I'm not a professional gold investor; I only bought gold to protect my money from devaluation. I bought gold in mid-2022, when SJC gold bars were priced at 67 million VND per tael.”
After nearly two years, the price of gold has skyrocketed to 82 million VND per tael. If I sold it now, I would have made a profit of 15 million VND per tael. However, since the price of gold is predicted to continue rising, I only sold half of my investment to use as working capital for my business. I'm keeping the other half, waiting for the price to reach a new high before deciding whether to sell or not.”
Meanwhile, short-term investors who bought gold after the Lunar New Year are only breaking even or even losing money, despite the increase in gold prices. The reason is the huge spread between buying and selling prices, reaching 2.5-3.5 million VND per tael.
Ms. Tran Quynh Hoa, a customer, said: “After the full moon of the first lunar month, I saved up money to buy 4 taels of gold, including 2 taels of gold bars and 2 taels of plain 9999 gold rings. Compared to that time, the price of gold has now increased by nearly 4 million VND/tael compared to the purchase price.”
However, if I were to sell, I would still lose 800,000 to 1.3 million VND per tael due to the significant difference between the buying and selling prices. At the time, I bought SJC gold bars at 78.8 million VND per tael, but now if I were to sell them, I would only get 77.5 million VND per tael. It's a loss, so even though the price of gold is rising, I'm not in a hurry to sell unless I need the money.”
According to forecasts, world gold prices will increase from now until the end of the year. Therefore, the price of gold rings will fluctuate around 70 million VND/ounce; the price of SJC gold, if there are no measures from the State Bank, could increase to 85 million VND/ounce; or even 87 million VND/ounce.
However, experts advise that investors who bought gold before Tet (Lunar New Year) should sell to lock in profits if the return is 2 million VND per tael. Analysis suggests that the significant price difference between SJC gold bars and world gold prices, coupled with uncertainty about when the State Bank of Vietnam will intervene, carries considerable risk.
Therefore, according to expert advice, people who want to buy gold for hoarding or investment purposes should choose 9999 gold as it is safer, but they need to choose the right time to "put down the money".
