Gold prices increase sharply but investors' profits remain thin

The main reason for the above situation is not the price movement, but the difference between buying and selling gold is pushed too high, causing the actual profit to be significantly "eaten".

At the end of the trading session on November 30, Saigon Jewelry Company SJC listed SJC gold bars at 152.9 - 154.9 million VND/tael. Compared to last weekend, the price has increased by 4.5 million VND per quantity in both directions. However, investors who bought gold on November 23 and sold it today only earned a profit of about 2.5 million VND/tael, which is nearly half of the market's increase.

This stems from the difference between buying and selling at SJC remaining at 2 million VND/tael, causing investors to lose a significant amount of money as soon as they enter the transaction.

At Bao Tin Minh Chau, the price of SJC gold bars also increased similarly, to 153.4 - 154.9 million VND/tael. Although the increase reached 4.5 million VND/tael after a week, the profit of buyers will only reach about 3 million VND/tael if sold today.

The difference between buying and selling here is up to 1.5 million VND/tael, continuing to be a major barrier that causes actual profits to be much lower than the price increase.

Not only gold bars, gold rings also recorded a significant increase, but the profit earned was even more modest. At Bao Tin Minh Chau, the price of gold rings reached 151.5 - 154.5 million VND/tael, an increase of 3.9 million VND/tael compared to a week ago, but the actual profit of investors was only about 900,000 VND/tael.

Meanwhile, buyers of gold rings in Phu Quy only made a profit of nearly 700,000 VND/tael even though the price has increased by 3.7 million VND/tael. For the same reason, the difference between buying and selling at enterprises is up to 3 million VND/tael, causing profit margins to narrow.

In the international market, gold prices closed the week at 4,218.4 USD/ounce, up sharply by 154.2 USD in just one week. This development contributes to the increase in domestic gold prices.

In reality, although gold prices have continuously set new highs, investors' profits have not increased accordingly. Most of the increase range has been absorbed by the large difference between buying and selling in recent times. Many buyers who are afraid of missing out on opportunities (FOMO) are likely to fall into a situation where gold increases but they lose or only make very little profit.

Currently, the difference between buying and selling is too high, while the FOMO mentality can make buyers more susceptible to losses, especially those who travel in the short term. Investors need to be alert and consider carefully before putting money down.