Investment channels are too hot, should we take refuge in gold?

The rise in gold prices has slowed down, but there is no sign that the price of gold will cool down. Investing in high-growth investment channels such as stocks, real estate, or taking refuge in gold is a question that many investors are wondering.

Gold prices are unlikely to decrease in the medium and long term. Photo: Duc Thanh

Purchasing power decreases, but gold preference does not decrease

Closing last weekend, the domestic selling price of SJC gold was 124 million VND/tael, while the world spot gold price stood at over 3,390 USD/ounce.

Dr. Nguyen Tri Hieu, an economic expert, commented that the gold price is “swaying” as many investors take profits, but in the medium and long term, the gold price will continue to increase. The reason is that the global trade war has not yet ended, geopolitical risks in many regions are still very complicated, and the global economy is still unstable.

The domestic gold bar price has increased by more than 47% compared to the beginning of the year. According to the forecast of Dr. Nguyen Tri Hieu, SJC gold bars will soon conquer a new record of 125 million VND/tael, and may even reach 130 million VND/tael in the near future.

“Among investment channels such as gold, securities, real estate, stocks, savings, bonds and soon digital currency, gold is still the most exciting investment channel in Vietnam. The Vietnamese people's preference for gold has existed for a long time and this is still an irreplaceable investment channel,” said Dr. Nguyen Tri Hieu.

According to statistics from the World Gold Council, Vietnam's gold demand decreased by 20% in the second quarter of 2025 (in terms of volume), but still increased by 12% in value.

Many opinions say that, after a sharp increase in price in the first half of the year, gold demand is slowing down, because the increase in gold is slower than other "hot" investment channels such as stocks, real estate, etc.

Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking, Nguyen Trai University, analyzed that the recent sharp increase in stocks has caused a significant amount of speculative capital to shift from gold to stocks, and the "fomo" (fear of missing out) psychology in gold has decreased significantly compared to the time when gold prices were hot in the first half of the year. At the present time, when gold is forecast to only fluctuate within a narrow range in the second half of the year and prices are at a high level, according to Mr. Huy, investors should reduce their gold holdings, specifically only holding about 10% of their total investment portfolio, to prevent risks.

However, speaking to Dau Tu Newspaper reporters, Mr. Shaokai Fan, Director of Asia- Pacific region (excluding China) and Director of Global Central Banks at the World Gold Council, said that gold demand in Vietnam has only decreased temporarily, due to the devaluation of VND compared to USD, making gold prices more expensive, a barrier to purchasing power. In fact, people's psychology of buying gold is still very strong.

There is no factor supporting the decrease in gold price.

Commenting on the outlook for gold prices in the coming time, Dr. Nguyen Tri Hieu said: “There is no factor supporting the decrease in gold prices. In my opinion, the global economy still has many uncertain and unstable factors and gold prices are unlikely to decrease in the medium and long term.”

The World Gold Council also forecasts that although the gold price increase will slow down in the second half of 2025, the trend is still upward. Factors such as the US-China tariff negotiations have not yet reached a final result, surprises can still happen, the possibility of the US Federal Reserve (Fed) cutting interest rates... will continue to support gold prices.

In addition, gold prices are still benefiting from the huge buying demand of central banks and exchange-traded funds (ETFs). In the second quarter of 2025, the strong increase in gold demand from gold ETFs was the main driver of the increase in gold prices. At the same time, central banks continued to be net buyers. The amount of buying by the central bank sector remained at a significantly high level, due to the prolonged economic and geopolitical instability. The World Gold Council's annual survey of central banks showed that 95% of reserve managers believe that the gold reserves of global central banks will increase in the next 12 months.

Mr. Shaokai Fan commented that in the context of an increasingly unpredictable world with many unstable factors, gold is becoming a safe defensive asset chosen by many investors and large markets around the world, including central banks.

In fact, over the past 5 years, the world has experienced many major fluctuations that have shaken the global financial market, and in such times, gold has always been an asset that helps investors overcome crises. This is also the reason why central banks and large investors around the world continuously add gold to their investment portfolios.

Although many other investment channels are "hotter" than gold, Mr. Shaokai Fan believes that gold is still a special asset that cannot be missed in any investor's portfolio, because gold has a factor that no other asset has, which is the defensive nature, absorbing risks from economic fluctuations. In the world, large investors, including central banks, are also increasing their gold purchases. Vietnamese investors also need to pay attention to gold to increase the resilience of their portfolios.

Source: https://baodautu.vn/cac-kenh-dau-tu-qua-nong-co-nen-tru-an-vao-vang-d355272.html