Gold prices keep hitting new peaks, why?

After remaining flat on August 22, at the opening of the trading session on August 23, the price of SJC gold bars skyrocketed by VND1.2 million/tael in both buying and selling prices, breaking all old records, setting a new peak price of VND125.6 million/tael in buying and VND126.6 million/tael in selling.

Similarly, the Saigon Jewelry Company (SJC) also listed the buying and selling price of 4-number 9 gold rings at an increase of 1 million VND/tael compared to the closing price on August 22, raising the buying and selling price of each tael of gold to a new record, at 118.5 million VND and 121 million VND, respectively.

On August 23, the selling price of SJC gold bars set a record of 126.6 million VND/tael. PHOTO: NGOC THANG

Previously, on August 21, the price of SJC gold bars was also listed by SJC Company to increase by 600,000 VND/tael for both buying and selling, bringing the buying price to 124.4 million VND/tael and the selling price to 125.4 million VND/tael. This was a new record price for gold bars up to that time.

Thus, in just 3 days, the price of SJC gold set a record twice. In the past month, the price of SJC gold bars increased by 5.9 million VND/tael for buying and 4.9 million VND/tael for selling.

In recent days, the price of SJC gold bars has been consistently higher than the world gold price by about 18 - 19 million VND/tael, and gold rings are about 13 million VND/tael higher.

According to financial and banking expert Nguyen Tri Hieu, a series of unstable problems in the gold market such as skyrocketing prices, the high difference between domestic and world gold prices... all stem from scarce supply.

In recent months, after the State Bank announced a draft Decree amending Decree 24 on the management of gold trading activities with many innovative contents, the market is still waiting for moves to resolve the shortage of supply, but so far nothing has appeared. This creates more pressure, making gold prices more expensive.

Also affirming that the key and deepest reason why domestic gold prices continuously break records, and the high difference between domestic and world gold prices is because the market is lacking gold, Mr. Nguyen Huu Huan, Head of the Financial Markets Department (Faculty of Banking, Ho Chi Minh City University of Economics ), emphasized: "All other solutions cannot bring about complete effectiveness if this problem has not been solved."

However, in addition to the supply story, Mr. Huan acknowledged that another core cause is the increase in exchange rates.

In recent days, the USD/VND exchange rate has been continuously increasing. That means, although the world gold price calculated in USD has decreased, when converted to Vietnamese Dong, the price is still anchored at a high level. This is a direct factor that makes it difficult for domestic gold prices to "cool down" following the world price.

Should I buy or sell gold now?

To solve the situation of skyrocketing gold prices and high price differences, according to Mr. Huan, a breakthrough solution is needed.

This person mentioned aspects such as the need to eliminate the monopoly of SJC gold bars, allow the import of raw gold, and move towards building a precious metal trading floor, including gold, and located in an international financial center.

If you invest in gold at this time, you will face many risks. PHOTO: DAN THANH

In fact, contents such as eliminating the monopoly on SJC gold bars, allowing the import of raw gold, etc. are all mentioned by the State Bank in the draft Decree amending Decree 24.

In the current context, many economic experts suggest that this decree should be quickly issued and implemented to stabilize the gold market.

When the price of gold peaks, the question that people who are holding money are concerned about is whether they should buy all in gold. People who are holding gold are wondering whether they should sell gold to take profit.

Mr. Huan said that "putting money" into buying gold at this time is quite risky. The domestic gold price currently depends largely on policy. If there is a decision to allow gold imports and build gold exchanges, the gold price may drop rapidly.

" The government will not let the large price difference continue and fundamental solutions to stabilize the market will soon be implemented," Mr. Huan believes.

Gold expert Tran Duy Phuong recommends that if you have idle cash and still want to invest in gold, you should buy 4-9 gold rings instead of gold bars, because the price difference between gold rings and world gold is lower.

"Gold always increases in price over time, so if you buy it for storage or long-term investment, there is not much to worry about," the expert said.

Regarding whether to sell gold to take profit, according to Mr. Phuong, if selling makes a profit and the profit margin meets expectations, then one should sell./.

According to Thanh Nien Newspaper

Source: https://thanhnien.vn/gia-vang-lien-tuc-lap-dinh-vi-sao-185250823172453521.htm

Source: https://baolongan.vn/gia-vang-lien-tuc-lap-dinh-vi-sao-a201244.html