Gold is no longer an attractive investment channel after the hot growth period.

The gold market in Ho Chi Minh City is quite active during the time when gold prices are skyrocketing. (Photo: Hua Chung/VNA)

Although gold prices are expected to continue to increase in the long term, investing in gold at this time is no longer effective for new investors.

Because gold prices may be subject to correction after a period of strong, prolonged growth; even if gold prices continue to increase, the rate of return will no longer be attractive.

Domestic gold prices unexpectedly increased sharply again at noon on March 26, reaching nearly VND99 million/tael, after remaining unchanged in the morning compared to the closing price yesterday afternoon. Notably, most major gold trading companies adjusted their buying prices sharply higher than their selling prices.

Specifically, the price of SJC gold bars at SJC, DOJI... companies simultaneously increased by 300,000-600,000 VND/tael this afternoon. These companies adjusted the buying price up by 600,000 VND/tael, to 96.5 million VND/tael, while the selling price only increased by 300,000 VND/tael, to 98.2 million VND/tael.

Similarly, the price of gold rings has also been adjusted by companies to increase from 100,000-600,000 VND/tael. The price of gold rings is gradually approaching the mark of 99 million VND/tael.

On the world market, on March 25, the world gold price increased. Concerns about the US imposing tariffs on major trading partners are creating large fluctuations in gold prices.

Although gold prices have rebounded and forecasts show that gold still has long-term price growth prospects, the return on gold investment in the remaining three quarters of 2025 may no longer be attractive.

Statistics show that since the beginning of the year, the world gold price has increased by more than 14%. Domestic gold prices have fluctuated more, increasing by about 18%. Gold has become one of the investment channels with the best performance compared to other popular investment channels such as savings, stocks, real estate, etc. However, this is also the reason why gold investment is considered no longer attractive, when most forecasts predict that the increase in gold price this year could reach 3,200 USD/ounce.

At a recent talk show organized by Nguoi Lao Dong Newspaper in Ho Chi Minh City, gold expert Tran Duy Phuong said that gold prices have had a strong and prolonged increase since the end of 2023. In particular, in the first quarter, gold prices recorded strong fluctuations and reached a record high of more than 100 million VND/tael last week.

The gold market in Ho Chi Minh City is quite active during the time when gold prices are skyrocketing. (Photo: Hua Chung/VNA)

The inauguration of Donald Trump as US President with his unpredictable policies is the biggest turning point affecting gold prices in recent times. US tariff policies and global trade tensions are predicted to cause commodity prices to rise, causing high inflation in the context of a low interest rate environment. This boosts the demand for gold as a safe haven.

In the country, many people see gold as an attractive profit, buying it will bring profit so they rush to buy regardless of the high price, causing the domestic gold price to increase faster than the world gold price. At many times, the difference between the domestic gold price and the world gold price is up to 4-5 million VND/tael of SJC gold.

According to this expert, although the possibility of gold price increase is still high in the coming time, gold always moves in a sine wave and will have a strong correction before entering a new price increase.

“The impacts of tariffs and interest rates have also been partly reflected in the sharp increase in gold prices recently. I think gold will have a significant adjustment, and by May at the latest, the price of gold may return to around $2,800/ounce,” Mr. Phuong commented.

According to him, after this adjustment, gold is likely to have a new price increase, possibly in the third quarter. However, because gold prices have increased sharply in the first quarter, there will no longer be room for gold prices to increase sharply. Gold prices may reach $3,200/ounce this year. Therefore, at this time, if you start investing in gold, the return on investment will not be as high as before.

Dr. Dinh The Hien, a financial expert, also said that although gold has increased sharply in the first quarter, the investment efficiency of gold is still lower than other investment channels in the long term. Considering the economic cycle from 2010 to now, the price of gold has only increased by about 50%; meanwhile, other investment channels such as stocks have much better investment efficiency.

Mr. Nguyen The Minh, an investment consultant, also believes that gold is only for storage and only becomes popular during times of economic and geopolitical instability, and this has been clearly reflected in the past two years. Compared to other investment channels such as real estate and stocks, gold does not create added value for the economy and market in the long term.

Therefore, as a preventive insurance tool in cases of financial market decline, with many unpredictable factors, investors should only invest a small proportion of their investment in gold, especially should not use leverage in gold investment.

Gold experts believe that although the gold investment strategy is still effective, investors need to choose the right time to invest in gold to bring higher returns. For investors who hit the peak of VND100 million/tael last week, this investment level is quite risky, but in cases of cumulative buying, without using leverage, it can be held for the long term.

As for new investors, they absolutely should not buy at this time, because the world gold price is at risk of correction after a period of strong and prolonged increase. Investors can wait for a strong correction of the market to participate to bring higher profitability./.

According to VNA

Source: https://baothanhhoa.vn/vang-khong-con-la-kenh-dau-tu-hap-dan-sau-giai-doan-tang-nong-243664.htm