On the morning of September 26, the SJC gold bar price ranged between 81.5 and 83.5 million VND per tael for buying and selling, respectively. Meanwhile, gold rings closely followed with a range of 81 to 82.5 million VND per tael for buying and selling. This is a record high for gold rings, given the surge in global gold prices and the controlled gold bar market.
The domestic gold ring market usually moves in tandem with gold bars and global gold prices. Currently, some regions are facing temporary disruptions in gold bar supply, leading to a sudden surge in demand for gold rings. Consequently, the price of gold rings has escalated to 82.5 million VND per tael, attracting a significant number of small investors.
On the international market, gold maintains its safe-haven appeal amid geopolitical tensions and global economic fluctuations. The Russia-Ukraine war, escalating Middle East tensions, and the interest rate policies of the US Federal Reserve have pushed global gold prices to all-time highs. Large investors flock to gold as a safe haven during these turbulent times, increasing demand and driving up prices.
Is it a good idea to invest in gold rings at this moment?
Mr. Nguyen Quang Huy, CEO of the Finance and Banking Faculty at Nguyen Trai University, assesses that with gold ring prices at record highs, investment decisions should be made cautiously. If there is a need for short-term gold accumulation or asset preservation, gold rings could be a suitable option for investors. However, if the goal is profit-making, one should be prudent as the current price level is already high and faces significant adjustment pressure.
Instead of concentrating all capital on gold, investors are advised to consider diversifying their investment portfolios. Alternative investment avenues, such as stocks, real estate, or financial products, may offer higher returns and reduce risks compared to solely focusing on gold during this period.
With the global economy on the path to recovery, it also presents an opportunity for investors to explore new business ventures, expand their current operations, or venture into potential investment channels. Rather than solely relying on gold—an asset known for its value preservation qualities—seeking opportunities in diverse business areas can offer more sustainable profit potential.
Focusing on business development not only enhances personal asset value but also contributes to the overall growth of the national economy. This is an opportune moment to leverage the recovery of the global economic market, fostering innovation and progress.
While gold ring prices are currently at a record high, it doesn’t necessarily make it an ideal investment timing. Given the intense volatility in the international market and the impending pressure to adjust prices, investors should exercise caution when deciding to invest in gold rings. Diversifying investment portfolios and seeking opportunities in other business channels may be a more prudent choice, especially amidst a robust economic recovery.
As with any investment decision, the most crucial factor remains understanding the risks, grasping trends, and formulating long-term strategies to optimize profits.
Let the Gold Market Operate According to Supply and Demand
Dr. Nguyen Tri Hieu, a finance and banking expert, opined that global gold prices are dictated by supply and demand, and no entity can control the international gold market. Therefore, he expects global gold prices to continue their upward trajectory.
Consequently, we may have to accept that the domestic gold market will follow suit. An increase in global gold prices is a natural occurrence during times of turmoil, and financial investors worldwide still view gold as a hedge against crises.
In Vietnam, there are two distinct gold segments: gold bars and gold rings. Gold bars have been subjected to stabilization measures, dropping from 92 million VND per tael to 82 million VND per tael, but supply remains limited, resulting in a tightly controlled gold bar market.
On the other hand, gold rings are not subject to stabilization efforts and are still governed by market forces. With the sharp rise in global gold prices, gold ring prices have also increased, and further increases are anticipated.
If gold bars continue to be controlled, gold rings will likely surge in price this year and into 2025. However, if gold rings experience the same frenzy as gold bars, they may also come under regulatory scrutiny and be subject to adjustments. Therefore, gold investors should exercise utmost caution as the gold market is poised for adjustments.
Once the gold fever subsides, regulators should allow the gold market to operate according to supply and demand for both gold bars and gold rings. The State Bank of Vietnam should focus on policy formulation rather than direct price intervention.
In particular, Circular 24 should be amended to stabilize the gold bar market and grant more freedom to both markets. Consequently, domestic gold prices may tend to follow global trends without experiencing the recent gold rush and significant price discrepancies with the world market.
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Globally, investors locked in profits after gold soared to a record high on expectations of another aggressive interest rate cut by the US Federal Reserve. On September 25, the spot gold contract fell 0.2% to $2,652.99 an ounce after reaching an all-time high of $2,670.43. Gold futures remained stable at $2,677.30 an ounce. |
By Cat Lam
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## Gold Surges Past $2,600: A Market Update
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The Golden Loop: A Record-Breaking Price Surge
This morning (September 19th), domestic gold ring prices soared to a record high of 79.2 million VND per tael, an unprecedented level. The selling price of SJC gold reached an astounding 82 million VND per tael.
Gold Prices Soar: Global Rates Surpass $2,600 per Ounce, Gold Rings Peak at Over 80 Million VND per Tael
The Fed’s decision to slash interest rates by 0.5% has sent shockwaves through the market, with gold prices skyrocketing to unprecedented levels. This bold move has ignited a fiery rally in the precious metal, and experts predict that this is just the beginning. As the Fed hints at further rate cuts on the horizon, the stage is set for gold to continue its dazzling ascent, captivating investors and reshaping the financial landscape.
