The Golden Opportunity: Can Gold Prices Keep Surprising Us?

At 11:30 am, Saigon Jewelry Company listed SJC gold bar prices at 82.8 – 85.3 million VND/tael, an increase of 100,000 VND/tael in both buying and selling prices compared to the beginning of the morning.

Large gold businesses such as Bao Tin Minh Chau Company, Doji Group, and Phu Quy Gold Company, among others, simultaneously increased the selling price of SJC gold bars to 85.3 million VND/tael.

The price of gold rings also increased along with gold bars. Bao Tin Minh Chau Company listed gold ring prices at 82.68 – 84.68 million VND/tael, an increase of 250,000 VND/tael compared to the beginning of the morning. The buying and selling spread was 2 million VND/tael.

Doji Group listed gold ring prices at 83.5 – 84.5 million VND/tael, with an increase of 100,000 VND/tael in the selling price. However, the company significantly adjusted the buying price, increasing it by 1 million VND/tael compared to the beginning of the morning. The buying and selling spread narrowed to 1 million VND/tael.

In the international market, gold prices were listed at 2,639 USD/ounce, an increase of 7 USD/ounce compared to the beginning of the morning.

This morning, many investors took advantage of the sharp drop in prices to buy gold. However, due to high demand, prices rebounded. In Tran Nhan Tong gold street in Hanoi, people were seen queuing to buy gold again. However, for the past two days, major gold businesses have been selling gold rings without quantity limits. SJC gold bars remain absent from gold shops.

At Bao Tin Minh Chau gold shop, customers did not need to take a number, but they had to queue for 30-45 minutes to make a purchase.

Ms. Ngoc Trinh from Hoang Mai, Hanoi, shared: “I have been monitoring gold prices all week, and as soon as the prices dropped, they rebounded. So, I decided to buy immediately. I was surprised that, after a long time, the shop was selling gold without quantity restrictions, so I bought 20 taels of gold. If the gold price increases and I make a profit, I will sell it. Otherwise, I will keep it as savings.”

Ms. Thuy Sen from Ba Dinh, Hanoi, shared: “For the past month, whenever I bought gold, I could only buy a maximum of 3 chi. Today, the shop lifted the quantity restriction, so I bought 5 taels of gold. I know that investing in gold comes with high risks due to the constant price fluctuations, but holding gold still gives me a sense of assurance.”

However, some customers still brought gold to sell at a loss. Mr. Nguyen Thang from Dong Da, Hanoi, shared that he bought 2 taels of gold for “surfing” at a price of over 86 million VND/tael and is now facing a loss of nearly 4 million VND/tael. “This morning, as soon as I saw the sharp drop in gold prices, I went to the shop to sell and cut my losses to recover my investment for the next round,” he said.

Speaking to Tien Phong, gold expert Tran Duy Phuong advised that, given the rapid fluctuations in gold prices, investors need to consider their decisions carefully. If the goal is short-term gold accumulation or asset preservation, gold rings could be a suitable option. However, if the objective is profit-making, caution is necessary as the current price level is already high and faces significant downward pressure.

Instead of concentrating all capital on gold, investors should consider diversifying their investment portfolios. Other 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.

Mr. Phuong analyzed that the global gold price has already increased by about 30% and may be approaching its peak, with a downward adjustment likely before it resumes its upward trajectory. Therefore, investors should not expect gold prices to rise indefinitely, and it is important to note that the annual average increase in gold prices is typically around 5-10%.

As such, gold investment at this time requires careful consideration due to the elevated risks. The domestic gold market presents a similar picture, with local gold prices likely to follow the downward trend if global gold prices correct. The current spread between domestic and global gold prices is about 4-5 million VND/tael, so it is reasonable for domestic gold prices to adjust downward in tandem with a sharp decline in global gold prices.

“In my opinion, people should refrain from buying gold unless necessary. Those who have already profited from previous gold purchases should also consider selling when they reach their desired profit level. Buying gold domestically at this time carries the risk of ‘chasing the peak’ if global prices reverse in the short term. If you sell and then the price continues to rise, you shouldn’t regret it because the profit from gold rings since the beginning of the year has already been quite attractive, at 25-30%,” Mr. Phuong advised.