High gold buying and selling price difference, what should investors do to avoid losses?

Domestic gold prices continue to see a high buy-sell spread, posing significant risks for investors.

Risk of loss

As of 6:00 AM on November 24, 2024, the spread between buying and selling gold in the domestic market remained high, especially for SJC gold bars.

Specifically, the price of SJC gold bars listed by DOJI Group is at 85-87 million VND/ounce (buying price - selling price). The difference between the buying and selling price of SJC gold at DOJI Group is 2 million VND/ounce.

Saigon Jewelry Company (SJC) lists the price of SJC gold at 85-87 million VND/ounce (buying price - selling price). The difference between the buying and selling price of gold is also at around 2 million VND/ounce.

The difference between the buying and selling price of gold is currently high. (Illustrative image)

At the same time, the price of 9999 Hung Thinh Vuong gold rings at DOJI was listed at 85.6-86.6 million VND/ounce (buying price - selling price); the difference between buying and selling was 1 million VND/ounce.

The listed price for Phu Quy 9999 gold rings is 85.6-86.8 million VND/ounce (buying price - selling price); the buy-sell spread is 1.2 million VND/ounce.

Bao Tin Minh Chau and Bao Tin Manh Hai are listing the price of gold rings at 85.63-86.58 million VND/ounce (buying price - selling price), with a buy-sell spread of 950,000 VND/ounce.

Therefore, when buying SJC gold bars at DOJI this morning, November 24th, the price of gold would have to increase by 2 million VND/ounce for investors to break even, leading to the risk of losses. Specifically, with a price difference of 2 million VND/ounce for SJC gold bars at DOJI, the price of gold would have to increase by at least 2 million VND/ounce for investors to break even when selling.

Investors should "put their eggs in many baskets".

In an interview with the Industry and Trade Newspaper on this issue, Associate Professor Dr. Dinh Trong Thinh - an economic expert - stated that the large difference between the buying and selling prices of gold in the domestic market is a common occurrence and a precautionary measure to prevent gold traders from being significantly affected by price fluctuations.

“ Currently, gold prices rise very quickly and fall just as quickly. Therefore, gold shops and companies have no choice but to increase the selling price and decrease the buying price to reduce risk. That's why the gap between the buying and selling price can sometimes be 2-3 million VND, and sometimes even up to 5 million VND. This is also how gold traders shift the risk to the buyer ,” the expert commented.

Agreeing with the above viewpoint, Associate Professor Dr. Nguyen Huu Huan, Senior Lecturer at the University of Economics Ho Chi Minh City, stated that the nature of business operations is profit-driven, thus creating a buy-sell spread. " During periods of significant gold price fluctuations, the buy-sell spread will be large to account for situations where businesses buy at a high price but have to sell at a low price when the price falls, resulting in losses ."

However, according to Mr. Huan, that is a market principle, so gold traders cannot be blamed when the difference between buying and selling prices of gold is as high as it is currently.

To address the gap between buying and selling gold, Mr. Huan suggested: “ Vietnam could establish gold trading markets, gold exchanges managed by the State Bank. There, buyers and sellers would trade directly with each other, similar to a stock exchange. This would shorten the gold price gap, effectively eliminating the difference between buying and selling, leaving only transaction fees .”

According to expert Dinh Trong Thinh, the constantly fluctuating gold prices present opportunities for buying and selling. However, short-term gold investment or speculative buying and hoarding often carries significant risks. " In particular, borrowing gold for investment is not advisable due to the high risk ," the expert stated.

Therefore, he recommended that people regularly monitor the global and domestic gold markets, observing the price difference between the world and domestic markets, as excessively high differences can lead to significant risks. According to the expert, people should also diversify their savings across various areas such as savings accounts and stocks to broaden their investment portfolios.

Source: https://congthuong.vn/chenh-lech-mua-ban-vang-cao-nha-dau-tu-lam-gi-de-tranh-thua-lo-360579.html