In an exclusive interview with Báo Người Lao Động, Mr. Shaokai Fan, Regional Manager for Asia Pacific (excluding China) and Global Central Bank Director at the World Gold Council (WGC), shared his insights on the recent volatile gold price movements that have captured the market’s attention.
Reporter: As of this morning, October 4th, the global gold price continues to surge past the 2,600 USD/ounce mark. Has it exceeded WGC’s forecast for the year? What are the primary drivers behind gold’s consecutive record-breaking prices?
– Mr. Shaokai Fan: The sharp decline in the US dollar and lower interest rates are the main factors propelling gold prices upward since August. This aligns with the general sentiment that decreasing interest rates enhance gold’s appeal as a safe-haven asset.
Amidst global economic uncertainties, investors tend to diversify their portfolios and may opt for gold as it offers stability and has long been used as a risk hedging tool.
SJC gold bars and bullion are currently trading at peak prices not seen in months.
Is 2024 shaping up to be a record-breaking year for gold price increases? Is gold outshining other investment avenues? What factors will influence gold prices from now until the year’s end?
– As mentioned, gold price volatility is influenced by multiple factors. However, recent developments indicate that central banks’ gold reserves are declining, and widespread profit-taking by Asian investors could dampen gold’s performance in the coming months.
Turning our attention to the Vietnamese market, SJC gold bars and bullion are priced 4-5 million VND higher than global rates, but citizens report difficulties in purchasing. What are your thoughts on Vietnam’s current gold management policies?
– Vietnam has made significant progress in reforming its gold market. However, the World Gold Council believes that a more liberal approach to gold management policies, coupled with a focus on macroeconomic stability, could benefit consumers by streamlining gold transactions and narrowing the domestic price gap.
Given this insight, how should Vietnamese investors approach gold? Is it prudent to buy and hold, anticipating further price increases, or should they consider taking profits off the table?
– We believe gold holds a place in most investment portfolios. Generally, allocating a portion to gold helps investors improve risk-adjusted returns. These benefits are often evident over the long term, which is why we typically recommend gold as a long-term strategic component. Nonetheless, Vietnamese investors should carefully assess the performance and behavior of any asset, including gold, before making investment decisions.
Thank you for your valuable insights, Mr. Fan!
The Golden Surprise
As of the evening of September 27th, the SJC gold bar price was listed by the Saigon Jewelry Company (SJC) at 81.5 million VND per tael for buying and 83.5 million VND per tael for selling, maintaining the highest level in many months.
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The recent surge in domestic and global gold prices has left many hesitant, unsure whether to buy and await further price increases or seize the opportunity to sell and profit from the current high prices.
