Is it a good idea to buy gold as a store of value, hoping that its price will continue to rise?

In recent trading sessions, the price of domestic SJC gold has been continuously rising. At 5 PM on March 6, 2024, Saigon Jewelry Company Limited (SJC) listed the buying price of SJC gold at 79 million VND/ounce and the selling price at 81 million VND/ounce.

Compared to the early morning of the same day, the price of SJC gold in Vietnam increased by 600,000 VND/ounce for buying and 580,000 VND/ounce for selling.

The difference between the buying and selling price of gold at this establishment is currently around 2 million VND per tael. According to experts, this is still a high difference, shifting the risk to consumers.

Gold prices listed at Saigon Jewelry Company Limited (SJC). Screenshot taken at 5 PM on March 6, 2024.

Similarly, at the same time, Bao Tin Minh Chau listed the SJC gold price at 78.85 million VND/ounce for buying and 80.75 million VND/ounce for selling. Compared to early morning of the same day, the SJC gold price here increased by 200,000 VND in the buying price and slightly increased by 50,000 VND in the selling price.

Gold prices listed at Bao Tin Minh Chau. Screenshot taken at 5 PM on March 6, 2024.

SJC gold prices have been rising continuously in recent sessions. However, on March 6th, many investors and individuals intended to buy gold for hoarding purposes, hoping that the price would continue to increase in the future. According to a representative of Bao Tin Minh Chau, at their gold trading establishments today, the ratio of customers buying to selling was 55% buying and 45% selling.

Mr. Nguyen Tran Trung (Hoang Mai, Hanoi) shared that the price of SJC gold in Vietnam is currently at a record high, even higher than on December 26, 2023. According to expert forecasts, gold prices both domestically and internationally will increase sharply in the near future due to the impact of geopolitical conflicts, the US dollar, and other factors.

" Because bank interest rates are low, my family and I have decided not to deposit savings anymore. We've been monitoring the gold market daily, and even though the price is rising, I still intend to buy gold for safekeeping. At the current price, I'll monitor it for another week or so. If the price rises further, I'll buy a few grams, not a large quantity. I'll accumulate money and wait for the right time to buy at the most advantageous price, " shared Mr. Nguyen Tran Trung.

Many investors and individuals intend to buy gold as a store of value, hoping that its price will continue to rise in the future. (Illustrative image)

Regarding forecasts for domestic gold prices in the coming period, some economic experts believe that if there is policy intervention from regulatory authorities, the price of gold will decrease. If the State Bank of Vietnam does not yet intervene in the gold market, the price of gold is predicted to have room to rise due to the impact of the global gold market.

Although domestic gold prices have been soaring and reaching new highs, experts advise buyers to be cautious about the risks because the difference between domestic and international gold prices is high, around 19 million VND, and the spread between buying and selling prices is also high, which could be disadvantageous for gold investors when the market fluctuates.

A representative from Bao Tin Minh Chau advised that gold prices have surged dramatically this morning, so investors and the public should consider carefully before trading and regularly monitor gold prices on official channels to make the most informed decisions.

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