Hold gold, don't let it "drop"

The domestic gold price “dance” last week had unprecedented climaxes before falling sharply, causing many “investors” to sadly witness the price of gold drop by 5-6 million VND per tael. At the same time, gold rings – a new but familiar face in the gold market – were sometimes unavailable for sale at many stores.

The loss in the market for many people who call themselves investors following the market's upward trend also means that there have been big winners. Of course, this number is not many.

A somewhat numbing feeling spread across the market but also showed the chronic shortcomings of the domestic gold market such as asymmetry in both information and supply-demand, and the dominance of crowd psychology that may take a long time to be resolved.

Always be cautious with gold prices is never redundant advice.

And there are also other shortcomings that are not at all new, as the State Bank representative himself acknowledged, "kcannot rule out the possibility of market manipulation, violations of relevant provisions of the law on tax, competition, etc., leading to a high difference between domestic gold prices, especially SJC gold and world".

It can be said that the crowd mentality is still the biggest problem of the domestic gold market. People line up from dawn, rush to buy when the price is high and then regretfully "close" the loss, showing the two-sided nature of that mentality. Although experts familiar with the gold market have always advised caution when investing, it seems that this mentality has justified ignoring the two-sided nature of this mentality so as not to hesitate to invest money and then sit back and watch the gold price fall miserably.

The domestic gold market is still a question. For investors, the question is whether the gold price will continue to decrease, remain stable or continue to increase. For the regulatory agency, the question is what to do so that the domestic gold price does not continue to differ from the world gold price.

According to recorded expert opinions, it seems that gold prices will continue to fall while in between those declines there will be short-term price increases that are a consolation for the market and investors. Only when the balance of supply and demand meets, then can gold prices be called stable.

The fact that gold prices have stagnated and decreased in recent days around Donald Trump's return to the White House as the 47th President of the United States as predicted is considered by many to not be an accurate indicator in market forecasts.

Because the current world situation still has many hot spots, including issues of war, geopolitics... which will continue to be the reason why gold prices, especially domestic prices, can fluctuate unpredictably in the near future.

Some experts boldly predict that in the long term, the world gold price will continue to increase in 2025 and may set a record of 3.000 USD/ounce. At that time, the domestic gold price will increase sharply if the market has not changed in supply.

Therefore, as the ancients said, “hold the gold and don’t let it drop” is not only true figuratively but now also literally. And don’t be too trusting of the majority, which has proven to be a bad friend in investing.