Gold price has potential risks, warning against buying on God of Wealth day

Gold market developments in the past 3 months

At the end of 2023, the price of gold continued to fluctuate erratically. If in early December 2023, the domestic gold price was listed at around 72.4 million VND/tael, the selling price was 73.6 million VND/tael, then by the early morning of December 28, 2023, domestic gold increased to around 78.2 million VND/tael for buying and 80 million VND/tael for selling.

Thus, in less than 1 month, the gold price increased to more than 6 million VND/tael.

Faced with the above situation, Prime Minister Pham Minh Chinh requested the State Bank to immediately implement solutions to stabilize the gold market. At the same time, proactively develop scenarios and plans to respond to fluctuations in world and domestic gold prices to be ready with handling measures...

Following the Prime Minister 's urgent directive, the State Bank issued a statement stating that it will continue to closely monitor market developments and prepare a plan to intervene in the gold market...

Since then, domestic gold prices have been fluctuating within a narrower range. However, the difference between buying and selling prices listed by trading units is quite high, over VND2.3 million/tael. This poses a risk of loss for investors.

To make it easier to understand, after buying SJC gold with a buy-sell difference of 2.3 million VND/tael and immediately selling it back to the store, the investor will lose the same amount as this difference.

Gold trading scene at a store on Tran Nhan Tong Street, Hanoi, on God of Wealth Day 2023. Photo: Hai Anh

Buy gold now or wait for God of Wealth day for luck?

Rarely has the difference between buying and selling gold been pushed to such a high level and maintained for such a long time as it is now. In fact, every year, the difference between buying and selling gold is around 700,000 VND/tael.

On the day of God of Wealth (the 10th day of the first lunar month), this difference was pushed up to around 1-1.5 million VND/tael. However, just a few sessions later, the gold price quickly cooled down, and the buying-selling difference also decreased rapidly.

In recent trading sessions, the world gold price has continuously plummeted. This development may have a negative impact on the domestic market. However, this cannot be confirmed, because there have been times when the world gold price plummeted but the domestic gold price still increased.

However, the general trend is that the difference between buying and selling gold will be adjusted to increase higher on the God of Wealth day. Basically, it can be said that buying gold on the God of Wealth day has a higher chance of losing money.

In life, many people believe that buying gold at the beginning of the year, especially on the day of the God of Wealth, will bring good luck and fortune. Gold and gemstone businesses are also stepping up their communications this time, so despite facing the risk of losses, many people still decide to buy gold "for luck".

However, experts advise against buying a lot of gold on the God of Wealth's day. Economist Nguyen Tri Hieu shared: "Many people believe that if they buy gold on the God of Wealth's day, they will be supported and bring good luck. In this case, they can buy. However, in my opinion, this is just a superstitious concept that has appeared recently. Therefore, if you decide to buy gold for investment or as a dowry, you should not buy it on the God of Wealth's day because buying on this day is very risky.

From an economic perspective, buying gold before and on God of Wealth Day will bring disadvantages to investors. Instead of choosing to buy gold on a day with very high prices like God of Wealth Day, buyers should choose a later time, when gold prices plummet to catch the bottom" - expert Nguyen Tri Hieu said.

Domestic gold prices are during the Lunar New Year holiday. DOJI Group listed the SJC gold price at 76.55 million VND/tael for buying and 78.85 million VND/tael for selling.

The difference between buying and selling price of SJC gold at DOJI is 2.3 million VND/tael.

Meanwhile, Saigon Jewelry Company listed the buying price of gold at 76.7 million VND/tael; the selling price was 78.9 million VND/tael.

The difference between buying and selling prices of SJC gold decreased from 2.5 million VND/tael to 2.2 million VND/tael.

Meanwhile, the world gold price listed at 2:45 p.m. on Kitco was at 1,990.1 USD/ounce.

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