Gold prices fluctuate, fall sharply since the beginning of May
Recorded on the morning of June 21, SJC gold bar prices were commonly listed around 143.7-144.2 million VND/tael for buying and 147.2 million VND/tael for selling.
Gold ring prices also fluctuated around 143.7-144.1 million VND/tael for buying and 147.1-147.1 million VND/tael for selling, depending on businesses and products.
Compared to the beginning of May, the domestic gold price level has decreased significantly. On May 1, SJC gold bars were listed at 163 million VND/tael for buying and 166 million VND/tael for selling.
Thus, considering the selling side - the price people have to pay when buying gold, SJC gold bars are currently lower by 18.8 million VND/tael, equivalent to a decrease of about 11.3%.
When gold prices fall, with the same amount of money, buyers can own a larger amount of gold.
At the selling price of 166 million VND/tael at the beginning of May, each tael of gold had a corresponding price of 16.6 million VND. With 100 million VND, buyers can buy up to 6 taels of gold, worth 99.6 million VND.
At the current price of 147.2 million VND/tael, each tael of gold is equivalent to 14.72 million VND. If the store has 5 phan type products available, 100 million VND can buy 6.5 taels of gold, with a total value of about 95.68 million VND.
Thus, after gold prices decreased by 18.8 million VND/tael, along with 100 million VND, people can buy an additional 5 phan of gold compared to the beginning of May.
The above results are calculated according to the smallest gold standard of 5 phan. The actual volume also depends on the type of product, supply status and sales regulations at each enterprise.
Price decrease does not mean it has reached a safe buying zone
Lower gold prices help increase the purchasing power of cash holders, but it does not mean that buyers are definitely beneficial if they spend money at the present time.
The gap between the buying and selling price of SJC gold bars is currently about 3-3.5 million VND/tael. This means that immediately after buying, if resold, the owner can bear a corresponding difference even if the market price has not fluctuated.
For example, if a buyer buys a tael of gold at a price of 147.2 million VND, if they resell it immediately according to the level the business buys at 144.2 million VND, they will receive about 3 million VND lower. Gold prices must increase enough to compensate for this difference for buyers to get closer to the breakeven point.
The market has also recorded gold sessions increasing or decreasing by many million VND per tael in a short period of time. Therefore, the fact that the price has decreased by nearly 20 million VND compared to the beginning of May does not mean that the price cannot continue to adjust.
Should I buy more gold at this time?
Talking to Lao Dong Newspaper, Dr. Chau Dinh Linh said that there is no common decision for all investors. Keeping or selling gold depends on the proportion in the portfolio, financial pressure and liquidity demand.
According to him, if gold only accounts for about 10-15% of the portfolio and buyers are not under financial pressure, they can continue to hold it for long-term accumulation. Conversely, for people who keep gold accounting for 70-80% of their assets, buy at high prices or use leverage, they should consider selling off to reduce risks.
Dr. Linh does not encourage buying more to average the price in the current period, because gold may still go through a period of adjustment and prolonged accumulation. Investors need to remain alert, avoiding FOMO psychology (fear of missing opportunities) dominating, especially when the difference between buying and selling gold domestically at one point reached 5 million VND/tael.
Reality recorded by Lao Dong Newspaper reporters at gold shops shows that every time prices increase sharply, the number of people coming to buy is usually higher. Besides the group of customers buying for long-term accumulation purposes, there are also cases of buying out of fear of missing opportunities, then worrying and selling out when prices decrease.
On the international market, gold prices closed the week around 4,156 USD/ounce. The precious metal is under pressure from the US Federal Reserve's tougher monetary policy stance, a strong USD and expectations that interest rates may remain high.
In the coming week, gold price movements will continue to depend on US economic data such as PMI, PCE inflation, last adjusted Q1 GDP, durable goods orders and the number of unemployment claims.
