Gold has traditionally been a popular investment avenue in Vietnam, but is it still a lucrative option in 2024? That’s the question on many investors’ minds, including long-time gold investor Mr. Tran Manh Hung from Hanoi.
“While gold has always been a store of value, it’s also an investment vehicle. However, it’s during periods of significant price fluctuations that investors tend to get really excited about the gold market. When prices are stable, it’s not as attractive an investment option,” says Mr. Hung.
He adds, “With the recent involvement of the State Bank, gold may only serve as a defensive strategy going forward, in case of potential future crises. Therefore, I believe the most attractive phase for gold investments is over, and currently, we’re only seeing small waves in the market.”
Is it worth investing in gold when prices are stagnant? (Illustrative image: Cong Hieu)
Mr. Ta Thanh Tung, Head of Research & Consulting at FIDT, shares a similar sentiment. He believes that in the short term, gold still has some growth potential in the remaining six months of 2024, but not significantly so. As a result, it may not be the most appealing investment choice anymore.
For the remainder of 2024, while gold can still be part of an investment portfolio, it should be treated as a defensive asset. Mr. Nguyen Quang Huy, CEO of Finance and Banking at Nguyen Trai University, recommends keeping the allocation to gold at no more than 5% and exploring other more attractive investment opportunities.
“It’s a rather sensitive time for gold investors right now,” says Mr. Huy. He suggests that anyone considering investing in gold at this point should carefully consider various macro factors, both domestically and internationally. These include ongoing global conflicts, changes in domestic gold management policies, the revision of Decree 24, and measures to stabilize gold prices, such as gold bar auctions, gold sales through banks, anti-smuggling efforts, and market inspections.
Additionally, investors should assess their risk appetite, level of investment knowledge, seek expert advice, and employ technical analysis to balance expected profits with potential risks before making any investment decisions.
One notable trend, according to the expert, is that when prices are stable, people tend to lose interest in gold. This is because gold prices in Vietnam are no longer subject to wild fluctuations, which has stabilized the mindset of the people. They are no longer as keen on buying gold as a store of wealth as they once were. Moreover, the recovery of other investment avenues, such as the recent increase in bank deposit interest rates to above 6%/year, has given people more options to consider.
A Life Insurance Company Pours Over $730 Million into the Stock Market, Holding a Large Chunk of Bank Shares
As of the end of June, this company held over 494.5 million listed securities and traded securities on the UPCoM system, valued at more than VND 17.3 trillion. In the first half of 2024, this insurance enterprise invested over VND 2.4 trillion in additional purchases of securities.
The Impact of a Weaker Currency: Exploring the Benefits for the Economy
Since the beginning of the third quarter, the pressure on exchange rates has eased. The appreciation of the VND against the USD has provided much-needed relief to various business sectors and is expected to alleviate the pressure on rising interest rates. This could potentially stimulate consumer demand and boost the economy.
The Golden Oracle: Shark Hưng’s Price Predictions Strike Again
Shark Hưng, a prominent investor and entrepreneur, once again showcases his astute insights into the dynamics of the gold market. In his recent predictions, Shark Hưng foresees the trajectory of gold prices and accurately anticipates the rise in popularity of gold rings. With his keen understanding of market trends and consumer behavior, Shark Hưng’s predictions are a testament to his expertise and strategic vision.
