Why are Nghe An people not in a hurry to sell gold even though they made a profit of 3 million/tael after a week?

This morning, October 27, closing the weekly trading session, the world gold price listed on Kitco was at 2,747.2 USD/ounce, up 25.3 USD/ounce compared to the closing session last week.

Domestically, at the end of the week's trading session, DOJI Group listed the price of SJC gold at 87 - 89 million VND/tael (buy - sell). Compared to the closing price of the previous week, the price of gold bars increased by 3 million VND/tael for both buying and selling. The difference between the buying and selling prices of SJC gold was at 2 million VND/tael. The price of 9999 round rings was listed at 87.90 - 89.00 million VND/tael (buy - sell); an increase of nearly 3.3 million VND/tael for both buying and selling compared to the closing price of the previous week.

In Nghe An, as of this morning, October 27, the gold price at state-owned gold and silver corporations and companies is at the same level as the domestic gold price.

Particularly at gold shops belonging to private gold and silver enterprises, the listed price is 87.00 - 87.50 million VND/tael (buy) and 90.50 - 90.70 million VND/tael (sell); about 1 million VND/tael higher than the domestic gold price in the selling direction. If closing the trading session last week, the price of gold rings on October 20 was listed at 84.30 million - 87.80 million VND/tael (buy - sell).

At this price, compared to the closing price of the previous week, gold rings have increased by nearly 3 million VND/tael for both buying and selling. Therefore, after a week of strong increases, if buying gold rings on October 20 and selling them today (October 27), the profit investors will receive is 2.5 - 3 million VND/tael.

Despite the huge profits, at this time, very few people sell gold, but mainly buy gold. Ms. Trinh Thi Ngoc Anh, an employee of a gold shop on Le Loi Street (Vinh City) said: "Although the difference between buying and selling is quite high, the gold price has increased sharply in both directions, so gold buyers still have a deep profit after 1 week of investment.

However, the number of people selling gold is very small, only those who need cash urgently need to liquidate gold. Most people are waiting for gold to rise even higher, reaching a peak of 100 million VND/tael before selling.

According to records, when many gold shops in Nghe An resumed trading gold bars, few people sold gold bars at this time. “A few weeks ago, it was difficult to sell gold bars. I asked several shops but they all refused to buy. Now, I asked and they agreed to buy at the same price as 9999 gold rings. However, following the fluctuations in gold bars in recent days, I saw that the price of gold bars has grown well, so I am not in a hurry to sell,” said Mr. Vu Ngoc H., a resident.

Moreover, most people in Nghe An buy gold to accumulate assets, buy for protection and to keep their idle money from falling in value, few people buy to invest, catch the wave, and make a profit. Therefore, when the gold price "dances" and peaks, the market also fluctuates less than in big cities. In the past two weeks, the gold price has continuously broken the peak, the gold market has gradually warmed up and gold shops are quite crowded. However, among them, the number of people coming to survey and know the gold price is the main number; some people come to buy gold because of the fear of gold "jumping", very few people sell gold at this time.

“Actually, when I buy and store, I only buy in batches, a little at a time. Up to this point, I have made a profit, but I don’t know what to invest in when I sell it. Selling gold now is at 87.5 million VND/tael, but if I buy it, it will cost 90.5 million VND/tael, so I just store it and only sell it when I need the money,” said Ms. Nguyen Thi Tr.

Gold prices have increased sharply, people have made a lot of profit after a period of investing in gold, but few people are selling gold at this time. This has limited the supply of gold on the market. Private gold shops accept to buy gold of all brands, without requiring invoices or citizen identification, so most people who sell gold sell to private individuals; meanwhile, gold shops with the brands PNJ and DOJI only buy gold of their own brand, refusing gold of other brands, so the source of purchase is very small.

“Like our company, the gold supply to the market depends on two channels: Distribution from outside and the amount purchased from people to resell; while private enterprises mainly rely on the amount of gold reserves purchased from people before, so if people resell a lot, buy a lot, and store a lot, the supply will be abundant and vice versa,” said Mr. Nguyen Duy De - Director of ASEAN North Central Gold and Gemstone Joint Stock Company, Nghe An branch.