Gold prices drop sharply, should investors sell or buy?

Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking at Nguyen Trai University, said that domestic and international gold prices are at a historical peak, surpassing the 3,300 USD/ounce mark on the international market. This is a sensitive threshold, both reflecting optimistic expectations and potentially posing great profit-taking pressure when the market falls into the overbought zone.

Domestic gold prices have fluctuated strongly in recent days, widening the gap with world gold prices, showing increased speculation and short-term risks. In this context, investors need to be alert and carefully consider their action strategies.

According to Mr. Huy, if you have bought gold at a low price, this is the right time to take short-term profits and gradually realize profits.

Gold prices are constantly fluctuating, investors should not spend money to buy. (Illustration photo)

“You should not chase buying at high prices, the risk of technical correction can appear at any time. In case of real needs such as accumulating assets or preparing finances for specific goals, be patient and wait for a reasonable adjustment to participate more safely,” Mr. Huy advised.

Instead of chasing short-term price waves, investors should invest in intelligence and health - the two most sustainable foundations of a successful investor. Learning about gold, stocks, real estate, startups and business will help investors develop sharp financial thinking, manage risks effectively, and gradually create sustainable assets.

“Investing in gold is not only to make a profit, but also a journey to train your character, vision and life values. When you invest properly in yourself, all financial and business opportunities will gradually open up - sustainable, stable and proud,” said Mr. Huy.

Economist , Dr. Nguyen Tri Hieu also commented that this price reduction comes from many factors, including the Government's request to tighten gold trading activities.

"The current sharp drop in gold prices has made many investors immediately think of "putting money" into buying gold. However, buying gold at this time needs careful consideration, because the current gold price is still greatly influenced by the international market and macro policies. Investors should closely monitor signals from the market before making a decision," Mr. Hieu advised.

Investors should also note that gold prices are not only dependent on supply and demand but are also influenced by external factors such as interest rates, USD exchange rates and monetary policies of central banks. Therefore, do not rush to spend money, but learn carefully before buying gold at this time.

No asset increases forever without adjustment. Investors need to stay calm and cautious, avoid rushing into the gold market based on emotions and following the crowd. Instead, we should diversify our investment portfolio, focusing on areas that bring long-term and sustainable value. Investing in gold at the peak has the risk of large losses in case the market reverses.

Lost 8 million VND/tael of gold in 2 days

On the morning of April 20, the price of SJC gold bars at large enterprises such as SJC, PNJ, Bao Tin Minh Chau... was commonly listed at 112 million VND/tael (buy) and 114 million VND/tael (sell), down 5 million VND and 6 million VND/tael respectively compared to the same time on the morning of April 19. The difference between buying and selling prices was maintained at 2 million VND/tael.

Gold price decreased by 6 million VND per tael compared to yesterday.

Thus, if an investor buys gold at the peak of 120 million VND/tael and sells it at 112 million VND/tael, the loss could be up to 8 million VND/tael - a large loss in a short period of time.

Not only gold bars, 9999 gold rings are also under strong adjustment pressure. At SJC Company, the price of gold rings was adjusted to 109.5 - 113.5 million VND/tael (buy - sell), down 2 million VND/tael compared to previous days. Other brands such as PNJ, Mi Hong, Bao Tin Minh Chau also simultaneously lowered the price of gold rings to 109.5 - 114 million VND/tael depending on the brand.

Faced with the fluctuation of gold prices, many people are taking advantage of the opportunity to take profits, especially those who bought gold at low prices before. Some investors shared that they used to buy SJC gold bars at 68-70 million VND/tael, so even though the price has been adjusted, selling them still brings in nearly double the profit.

However, for those who just bought at the peak of 120 million VND/tael on April 17, the loss would be up to tens of millions of VND if they sold today, creating confusion and concern that gold prices could continue to fall in the near future.

According to the State Bank of Vietnam (SBV), the high gold price is a common trend in both the international and domestic markets, but the difference between the average domestic gold buying and selling price and the world price has decreased significantly compared to 2024 (at times the difference reached the highest level in 2024 of about 18 million VND/tael, equivalent to 25%), now it is about 2-4 million VND/tael (equivalent to about 3-5%), at many times the buying price of SJC gold bars is lower than the converted international gold price.

This development shows that with recent gold market management measures, the difference between domestic SJC gold bar prices and converted world gold prices is controlled within a suitable range.

Regarding gold market management, the State Bank said it has submitted a report to the Prime Minister proposing the development of a Decree amending and supplementing Decree No. 24/2012/ND-CP dated April 3, 2012 on gold trading management. In the coming time, the State Bank will continue to implement gold market management based on the direction of the Government, the Prime Minister, and legal regulations; closely coordinate with ministries, branches, and localities in managing gold trading activities.

At the same time, continue to perfect the legal framework on gold business management activities, focusing on summarizing Decree No. 24/2012/ND-CP dated April 3, 2012 of the Government on gold business management activities to propose, amend and supplement in accordance with reality.

Source: https://baohatinh.vn/gia-vang-giam-manh-nha-dau-tu-nen-ban-hay-mua-post286341.html