Buy gold for savings
After buying gold during the period when prices continuously increased, Ms. N.T. H, Hanoi is currently facing the choice of whether to continue holding or selling more when the market fluctuates strongly.
Ms. H said that the decision to buy gold stemmed from forecasts that gold prices still have room to increase, along with concerns about economic and geopolitical instability and the risk of currency depreciation.
I bought it with idle money, determined to keep it for a few years, not intending to speculate. But when the price dropped sharply, looking at the lost money, I was also anxious. I still expect gold to increase again in the future, so I don't want to sell yet, but I am also wondering whether continuing to keep it is reasonable or not" - Ms. H. shared.
Ms. H.'s psychology is not an isolated case. Reality recorded at gold shops shows that many people consider gold as a long-term accumulation and share that they do not pay too much attention to the increase or decrease in value in each session.
Ms. Chu Thi Mai (PV - Character name changed on request), Cau Giay, Hanoi said that she often buys each chi of gold when there is surplus money, with the purpose of saving it for her children and grandchildren.
I don't buy a lot at once, if I have money, I buy one or two chi and put them away. Whether the price goes up or down, I still keep it because I plan to give it to the children later, not buy it today and sell it a few months later" - Ms. Mai said.
According to Ms. Mai, the decrease in gold prices has caused the value of accumulations to change in the books, but it has not significantly affected the family's plans because the money to buy gold is not a loan and does not need to be used in the short term.
Meanwhile, Mr. P.T, Hanoi, chose to divide idle money into many channels instead of focusing entirely on gold.
Money left empty also loses value, but putting it all in gold is too risky. I divide a portion to deposit savings to have a stable amount, the rest to buy gold and determine to hold it for a long time. When I need money, I will prioritize using savings first to avoid having to sell gold at the right time when prices fall" - Mr. T. said.
Keeping or selling depends on financial pressure
Talking to Lao Dong Newspaper, Dr. Chau Dinh Linh - Lecturer at Ho Chi Minh City University of Banking - said that there is no common decision for all investors when gold prices fluctuate strongly. Whether to continue holding or selling down needs to be based on the proportion of gold in the portfolio, financial pressure and liquidity demand.
According to Dr. Linh, if gold only accounts for about 10-15% of the portfolio and buyers are not under pressure about money, continuing to hold it can be considered because gold is still a long-term accumulated asset.
Conversely, the risk will be greater for people who keep gold accounting for 70-80% of their assets, buy at high prices or use borrowed capital.
For this group, I recommend partially cutting losses to reduce proportion and manage risks" - Dr. Chau Dinh Linh recommended.
Experts also do not encourage buying more just to average prices in a period when the market is still volatile and unpredictable. Reducing the proportion of gold, dispersing assets and maintaining a part of high liquidity money is a plan that needs to be considered for people under financial pressure.
From a market perspective, Ms. Le Thi Huong Tra, Institute of Banking Science Research, Banking Academy, said that gold prices are supported by the need to diversify foreign exchange reserves, central bank buying activities and geopolitical risks. These are factors that help gold continue to be considered a defensive asset in the medium and long term.
However, "I think we should not rush to consider the decline as a'bottom-fishing' opportunity. Investors need to avoid buying according to crowd psychology, do not use borrowed capital, do not concentrate too much weight on gold and especially pay attention to the risk of domestic - world price differences continuing to narrow" - Ms. Tra said.
According to experts, gold is more suitable for the goal of preserving value and hedging risks instead of short-term surfing. Buyers should use idle money, allocate a moderate proportion and buy in installments, instead of chasing after strong gains.
