According to economic expert Dinh Trong Thinh, in Vietnam, it has been a long time since the price of gold has increased strongly, continuously, and for a prolonged period of time like recently. Therefore, investors who are holding onto gold may consider selling at this time because of attractive profits.
“Investors should not wait for the price to reach its peak before taking profit. This is because although the price of gold is rising, it is uncertain where the peak is and it could fall at any time. Therefore, if there is a reasonable profit opportunity, investors should sell to take profit,” advised Mr. Thinh.
In addition, according to Mr. Thinh, the price of gold also fluctuates significantly and has many risks when compared to the world price, so if there is profit, investors should sell. Specifically, the domestic gold price usually fluctuates in line with the world price, however, there are completely opposite times.
Should you sell gold in the current high price? (Illustration: Minh Duc)
Also, according to Mr. Thinh, the SJC gold price in Vietnam has a very high difference from the world price, up to 18 – 20 million VND/tael in the past time is unreasonable. “The domestic gold price is not connected to the world price, but it should only be around 6 – 7 million VND/tael higher which is reasonable,” he said.
With the same point of view, gold expert Tran Duy Phuong also suggested that for those who have bought gold before, if they are now profitable when selling, they should also consider taking profit.
“Gold is like other financial markets, it will go up and down. At the current time, the world gold price is very high, pushing the domestic gold price to rise accordingly. Therefore, investors should take advantage of this opportunity to take profit,” advised Mr. Phuong.
Further analysis, Mr. Phuong said that investors who have bought gold from before and during Lunar New Year, with the current price, the profit rate is quite good, in a short period of time. Investors just need to calculate an average profit of about 2 million VND/tael, then they should take profit.
For example, if bought before Tet, the price of a gold ring is only about 62 million VND/tael. When the price increases to over 64 million VND/tael, they should sell. This profit level is equivalent to about 3-4% of the invested amount in just 1 month, higher than the interest rate in the bank.
Should you invest in gold?
According to Mr. Phuong, the gold price is at its peak, if buying at this time, there is a high risk, profit rate is not as high as before.
However, the trend of the world gold in 2024 continues to rise so if you want to buy, wait until April-May, when the domestic gold price usually tends to decline, there will be a good price to buy.
Mr. Phuong also advised that if buying, still choose 9999 gold rings, because SJC gold has a high difference from the world price, it is unknown when the State Bank will intervene, so the risk level is quite high.
“Gold rings usually follow the market closely, with only a 3-4 million VND/tael difference, so the risk for investors is not significant,” emphasized Mr. Phuong.
In addition, according to experts, if Decree 24 is amended to expand the supply, the gold price may cool down, this is the time when investors should consider taking profit.
According to Huynh Trung Khanh, Vice Chairman of the Vietnam Gold Business Association (VGTA), an advisor to the World Gold Council in Vietnam, if Decree 24 is amended, the gold supply will increase, sufficient to meet market demand. This could cause the SJC gold price to decrease by tens of million VND/tael. Conversely, if the supply is not increased, the SJC gold price may increase to 85 million VND/tael.
“The story of the gold price in the near future depends largely on the basic solution which is to increase the supply. VGTA has proposed the State Bank allow the circulation of a few other gold brands like PNJ, DOJI, instead of only having SJC, to increase price competitiveness and diversify the supply,” said Mr. Khanh.
Similarly, Nguyen The Hung, Vice Chairman of VGTA, also believes that the State Bank must urgently amend Decree 24 to allow gold imports. If the supply is increased, sufficient to meet market demand, the SJC gold price may cool down instead of continuously increasing as it is now.
The domestic gold price this morning (March 12th) continues to trend up and set a new record when reaching 82.3 million VND/tael.
Specifically, at 8:30 am this morning, the gold price at Doji was quoted at 80.25 – 82.25 million VND/tael (buy – sell), increasing 100,000 VND/tael compared to the beginning of this morning.
Thus, the gold price has climbed to the highest level in history, surpassing the record of 82.2 million VND/tael set on March 10th.
