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 investment channels with high growth rates such as stocks, real estate, or taking refuge in gold is a question that many investors are wondering.

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

Purchasing power has decreased, but the preference for gold remains strong.

At the close of trading last weekend, the selling price of SJC gold in Vietnam was 124 million VND/ounce, while the spot price of gold in the world market stood at over 3,390 USD/ounce.

Dr. Nguyen Tri Hieu, an economic expert, believes that gold prices are fluctuating as many investors take profits, but in the medium and long term, gold prices will continue to rise. The reasons are the unresolved global trade war, complex geopolitical risks in many regions, and the continued uncertainty of the global economy.

Domestic gold bar prices have increased by more than 47% since the beginning of the year. According to forecasts by Dr. Nguyen Tri Hieu, SJC gold bars will soon conquer a new record high of 125 million VND/ounce, and may even reach 130 million VND/ounce in the near future.

“Among investment channels such as gold, stocks, real estate, shares, savings, bonds, and soon, cryptocurrencies, gold remains the most vibrant investment channel in Vietnam. The Vietnamese people's preference for gold has a long history, and it remains an irreplaceable investment channel,” commented 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 believe that, after a sharp price increase in the first half of the year, demand for gold is slowing down, as gold's upward trend is slower than some other "hot" investment channels such as stocks and real estate.

According to Mr. Nguyen Quang Huy, CEO of the Finance and Banking Department at Nguyen Trai University, the recent sharp rise in the stock market has caused a significant amount of speculative capital to shift from gold to stocks. The "FOMO" (fear of missing out) sentiment in gold has significantly decreased compared to the gold price surge in the first half of the year. Currently, with gold prices predicted to fluctuate within a narrow range in the second half of the year and at a high level, Mr. Huy advises investors to reduce their gold holdings, specifically to around 10% of their total investment portfolio, to mitigate risk.

However, in an interview with a reporter from the Investment Newspaper, Mr. Shaokai Fan, Director of the Asia- Pacific region (excluding China) and Global Central Bank Director at the World Gold Council, stated that the decrease in gold demand in Vietnam is only temporary, due to the depreciation of the VND against the USD, making gold expensive and acting as a barrier to purchasing power. In reality, the public's desire to buy gold remains very strong.

There are no factors supporting a decrease in gold prices.

Commenting on the outlook for gold prices in the near future, Dr. Nguyen Tri Hieu stated: "There are no factors supporting a decrease in gold prices. In my opinion, the global economy still has many uncertainties and instabilities, and gold prices are unlikely to fall in the medium to long term."

The World Gold Council also forecasts that, although the upward momentum of gold will slow in the second half of 2025, the trend will still be upward. Factors such as the unresolved US-China tariff negotiations, the possibility of surprises, and the likelihood of the US Federal Reserve (Fed) cutting interest rates will continue to support gold prices.

Furthermore, gold prices continue to benefit from strong buying demand from central banks and exchange-traded funds (ETFs). In Q2 2025, demand for gold from gold ETFs increased sharply, acting as a major driver of rising gold prices. Simultaneously, central banks continue to be net buyers. The volume of purchases by central banks remains significantly high due to ongoing economic and geopolitical instability. The World Gold Council's annual survey of central banks shows that 95% of reserve managers believe that global central bank gold reserves will increase within the next 12 months.

Shaokai Fan noted that, in an increasingly unpredictable world filled with uncertainties, gold is becoming a safe-haven asset chosen by many investors and major markets globally, including central banks.

In fact, over the past five years, the world has experienced significant upheavals that have shaken global financial markets, and in such times, gold has always been an asset that helps investors weather crises. This is also why central banks and large investors worldwide continuously add gold to their investment portfolios.

Although many other investment channels are "hotter" than gold, Mr. Shaokai Fan believes that gold remains a unique and indispensable asset in any investor's portfolio. This is because gold possesses a unique characteristic: its defensive nature, absorbing risk from economic fluctuations. Globally, large investors, including central banks, are increasing their gold purchases. Vietnamese investors should also pay attention to gold to enhance the resilience of their portfolios.

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