Gold ring prices surge dramatically; people in Nghe An province advised caution when investing.

Gold prices have been rising sharply recently. Photo: Thanh Phuc

Why are gold ring prices so high?

As of 11:00 AM on April 11th, the price of SJC gold bars and world gold showed a slight downward trend. Specifically, the world gold price listed on Kitco was at 2,339.1 - 2,348.8 USD/ounce. Compared to the opening of yesterday's trading session, the world gold price decreased by 9.7 USD/ounce.

The price of SJC gold is listed at 82.1-82.5 million VND/ounce (buying price) and 84.3-84.5 million VND/ounce (selling price).

Specifically for gold rings, as of 11:00 AM, the price of plain round gold rings was listed at 76.88-78.48 million VND/ounce for buying and selling respectively. Compared to the opening of yesterday's trading session (April 10th), the price of plain round gold rings was adjusted upwards by 500,009-900,000 VND/ounce for buying and 800,000-1 million VND/ounce for selling by various brands.

In Nghe An , the price of gold rings is listed by gold and silver businesses at 73.8 million VND/ounce (buying price) and 78.5 million VND/ounce (selling price).

The fluctuating price of gold has caused gold trading in Nghe An to heat up. Photo: Thanh Phuc

Accordingly, for three consecutive days, the price of gold rings increased by more than 5 million VND/ounce, and in nearly two months, the price of gold rings increased by nearly 15 million VND/ounce. The price of gold rings is considered to be "shocking," "heated," and "crazy" as it continuously sets new records.

The continuous increase in the price of gold rings is due to the following reasons: Firstly, the sharp rise in world gold prices is affecting domestic gold prices. Secondly, the demand for gold is driven by herd mentality. Thirdly, the supply of gold is scarce because the State Bank of Vietnam has not allowed gold imports for over 10 years. Fourthly, the scarcity of gold and high demand may be causing some businesses to push prices up.

Furthermore, due to the high price of SJC gold bars, the difference between the price of gold bars and gold rings sometimes reached 10-15 million VND, and the difference compared to the world gold price was about 12 million VND/ounce. Therefore, many people are concerned about the risks of investing in gold bars.

In particular, the price of gold rings has increased sharply in the last three months. Most people are rushing to buy gold rings instead of gold bars as they did before. Photo: Thanh Phuc

In particular, following the news that the government will tighten gold management and abolish the SJC gold bar monopoly, people and gold investors are worried that the price of gold bars will fall sharply in the future. Therefore, they are shifting to investing in gold rings, and many people are even rushing to sell gold bars to buy gold rings for hoarding. This has heated up the gold ring market and pushed up the price of gold rings.

Ms. Nguyen Thi Ngoc Mai, an employee at a gold and silver business on Cao Thang Street (Vinh City), said: “For nearly a month now, transactions of 9999 pure gold rings have surged, accounting for up to 80% of transactions at the shop. Most customers are buying. Meanwhile, the sale of SJC gold bars has almost come to a standstill; most customers come to sell gold bars and then reinvest by buying gold rings.”

The price difference between gold bars and gold rings has narrowed, now only about 5-6 million VND. Photo: Thanh Phuc

Should you invest in gold bars or gold rings?

Currently, with other investment channels such as stocks and real estate failing to deliver expected returns and savings interest rates continuously falling, the demand for buying and investing in gold is increasing. Therefore, according to expert forecasts, by the end of this year, the world gold price could rise to $2,600 - $3,000 per ounce, potentially driving the price of gold rings in Vietnam up to over 80 million VND per tael.

At the same time, experts advise that with gold prices currently soaring, investors should not rush to invest all their capital in gold. They recommend closely monitoring information from various channels, including statements and actions from the Government and the State Bank, as well as the latest market developments. In particular, during this gold rush, investors should absolutely not borrow money to buy gold. Because when gold prices suddenly drop, borrowers will simultaneously face heavy pressure from financial losses and debt repayment.

People need to exercise extreme caution when investing in gold at this time. Photo: Thanh Phuc

Regarding the rush to hoard gold rings, Mr. Nguyen Duy De, Director of the Agribank North Central branch, advises people not to sell gold bars en masse to hoard gold rings. Currently, the price of gold bars, while not increasing sharply, remains stable. Meanwhile, the price of gold rings is rising rapidly. Investors wishing to buy gold rings should wait for a correction, a decrease of about 5-7% compared to the current price, before making a purchase.

Both gold bars and gold rings possess characteristics suitable for both saving and investment. The choice between buying gold rings or gold bars depends on the individual's purpose. Depending on the time, people may choose gold rings or gold bars for investment. Both gold bars and gold rings have their own advantages and disadvantages.

While the gold market is booming, customers should buy and sell gold at reputable gold trading establishments. When buying, they should request a tax invoice with a complete serial number to avoid unnecessary losses.

When buying gold, choose reputable businesses and carefully check the gold's specifications. Photo: Thanh Phuc

Advantages and disadvantages of gold bars and gold rings:

- Regarding quality: Gold bars are of better quality than gold rings. This is because during mining and production, gold bars are less likely to be mixed with impurities. They are solid pieces of gold with a pure gold content of 99.99%.

- Regarding price: Gold bars are generally more expensive than gold rings, resulting in higher profits when sold. Meanwhile, gold rings are cheaper than gold bars but closely track world gold prices.

- Regarding long-term investment: Gold bars are more stable and have a higher price, making them suitable for long-term investment. Gold rings have investment and storage value, but are usually chosen for short-term or speculative investments.

- Regarding intended use: Gold bars are typically used for investment or as gifts. Gold rings, on the other hand, offer more versatility, serving both as a store of value and as jewelry.

- Regarding price fluctuations compared to world prices: Gold bars have a very large price difference, sometimes reaching up to 20 million VND/ounce. Meanwhile, gold rings tend to track world gold prices more closely.

Therefore, the decision to buy gold rings or gold bars depends on many factors; customers can make a suitable choice based on their circumstances and needs.

Source: https://baonghean.vn/gia-vang-nhan-tang-soc-nguoi-dan-nghe-an-can-trong-khi-dau-tu-post287651.html