"Chasing the peak" of SJC gold, investors suffered a shocking loss of 12.2 million VND/tael

“Riding the peak” of SJC gold at the beginning of the week…

In the past half month, the domestic gold market has been on a crazy upswing, rising from 74.40 million VND/tael to an all-time high of 80.30 million VND/tael on Tuesday, December 26.

However, after that, the price of SJC gold continued to “roller coaster”, sometimes “free fall” and sometimes strong recovery. However, investors still flocked to “gold shops” to line up to trade gold. Among them, there were many sellers but also many buyers.

Mr. Le Tam (Hang Bong, Hanoi ), who lined up to buy gold at noon on December 26 - the time when the price of SJC gold soared to 80.30 million VND/tael, said that although he knew in advance that the price of gold could be adjusted down, he still decided to keep the gold.

According to Mr. Tam, old people like him do not have much knowledge to invest in real estate or stocks. Therefore, he and his friends only hang around holding gold, dollars and saving money.

People lined up to trade gold on the day gold prices peaked at VND80.30 million/tael. Photo: Hoang Tu

Mr. Tam explained his choice of gold: “For a long time now, the dollar has not increased significantly, only a few 'cents' each year, lower than the savings interest rate. Last year, the interest rate was still high, but now it is very low, so gold still has the highest profit potential.”

Not only the elderly choose gold, according to observations of reporters of the Journalist and Public Opinion newspaper, on December 26, many young people chose to buy gold instead of selling.

… Weekend loss of 12.2 million VND/tael

After the “fever” of SJC gold price, the gold market has revealed many problems that pose great risks to investors. That is the gap between domestic and world gold prices is too large (at times nearly 20 million VND/tael) and the selling price - buying price of gold has reached the “peak” (about 4 million VND/tael).

After going through many ups and downs, the price of SJC gold is on a downward trend, causing investors to suffer a huge loss of up to 12.2 million VND/tael.

Specifically, on December 30, most "gold shops" lowered the buying price of SJC gold to below 70 million VND/tael.

At Bao Tin Minh Chau, SJC gold price is traded at: 68.10 million VND/tael - 72.20 million VND/tael. At Saigon Jewelry Company - SJC, SJC gold price is traded at: 69.50 million VND/tael - 72.50 million VND/tael. Doji Group listed SJC gold price at: 68 million VND/tael - 74 million VND/tael.

The highest buying price for SJC gold in the market belongs to Phu Nhuan Jewelry Company – PNJ with 71 million VND/tael. Currently, at PNJ, the price of SJC gold is trading at: 71 million VND/tael – 74 million VND/tael.

After hitting the peak of SJC gold at the beginning of the week, by the end of the week, the price of SJC gold “fell freely”, losing the 70 million VND/tael mark, causing investors to lose an unimaginable 12.2 million VND/tael. Photo: Hoang Tu

It can be seen that, compared to the "all-time high" set on December 26, the price of SJC gold has now decreased from 6.3 million VND to 8.1 million VND/tael. Combined with the difference between the selling price and the buying price, investors have lost up to 12.2 million VND/tael, equivalent to 15.2% after less than 1 week of trading.

Meanwhile, the price of non-SJC gold also fluctuated strongly. At Bao Tin Minh Chau, the price of Thang Long Dragon gold is being traded at: 61.96 million VND/tael - 63.16 million VND/tael. At PNJ Company, the price of PNJ gold is being bought and sold at: 62.20 million VND/tael - 63.30 million VND/tael.

Prime Minister requests stabilization of gold market

Facing the “gold storm”, on December 28, in a dispatch on solutions to manage the gold market, Prime Minister Pham Minh Chinh requested the State Bank to immediately implement solutions to stabilize the gold market.

The Prime Minister directed that the economy must not be "goldenized" and must not have negative impacts on exchange rates, interest rates, the monetary and foreign exchange markets, and national financial and monetary security and safety.

The Prime Minister requested timely detection and strict handling of violations, especially acts of smuggling, profiteering, speculation, manipulation, and taking advantage of price-pushing policies by organizations and individuals... causing instability and insecurity in the gold market.

Also on December 28, the State Bank said it will continue to closely monitor developments in the gold market and be ready to deploy intervention plans to stabilize the gold market.

In January 2024, the State Bank will submit a summary report on Decree 24, including proposals to amend and supplement a number of regulations on gold market management to suit the new market context.

Given the complex and unpredictable developments of the international and domestic gold markets, the State Bank recommends that people be cautious in gold transactions.

As mentioned above, in the telegram on solutions to manage the gold market, Prime Minister Pham Minh Chinh requested the State Bank to have effective solutions to manage and operate domestic gold bar prices according to market principles, not allowing the gap between domestic and international gold bar prices to remain as high as in the past.

Following the Prime Minister’s directive, the price gap between the two markets has been sharply reduced from around VND20 million/tael to VND12.40 million/tael. However, VND12.4 million/tael is still a huge gap.

Besides, the difference between the selling and buying price of SJC gold is still at a record high, about 4 million VND/tael.

Source: https://www.congluan.vn/du-dinh-vang-sjc-nha-dau-tu-lo-soc-122-trieu-dong-luong-post279114.html