Gold bar prices increase, buyers are not sure to make a profit
Compared to the morning of August 1st, SJC gold bar prices at many businesses have increased, but the difference between buying and selling still makes investment efficiency after a rather limited week.
At Phu Quy and DOJI, SJC gold bar prices both increased from 137-141 million VND/tael on August 1 to 141-144 million VND/tael on August 8. Thus, after a week, the buying price increased by 4 million VND/tael, and the selling price increased by 3 million VND/tael. Gold buyers on August 1 with a price of 141 million VND/tael, if they resell on the morning of August 8 with a price of 141 million VND/tael, they will break even.
At Bao Tin Minh Chau, SJC gold bar prices increased from 138.7-142.7 million VND/tael to 141.5-145.5 million VND/tael, equivalent to an increase of 2.8 million VND/tael in both directions. However, gold buyers a week ago still lost 1.2 million VND/tael, because the buying price on August 8 was 141.5 million VND/tael, lower than the selling price on August 1 which was 142.7 million VND/tael.
Gold rings increase but in some places buyers still lose money
With 9999 gold rings, the developments also show that the increase in listed prices does not necessarily mean that buyers have profits.
In Phu Quy, the price of gold rings increased from 137-141 million VND/tael on August 1 to 141-144 million VND/tael on August 8. The buying price increased by 4 million VND/tael, and the selling price increased by 3 million VND/tael. Buyers bought a week ago and resold on the morning of August 8 to break even, because they traded at the same level of 141 million VND/tael.
At DOJI, gold rings increased from 137.5-141.5 million VND/tael to 141.2-145.2 million VND/tael. Thus, both buying and selling prices increased by 3.7 million VND/tael after a week.
However, gold ring buyers at DOJI on August 1st at a price of 141.5 million VND/tael, if resold on the morning of August 8th at a price of 141.2 million VND/tael, would still lose 300,000 VND/tael.
At Bao Tin Minh Chau, gold rings increased from 138.7-142.7 million VND/tael to 141.5-145.5 million VND/tael. Both directions increased by 2.8 million VND/tael. However, buyers a week ago still lost 1.2 million VND/tael if they resold on the morning of August 8.
World gold rises nearly 300 USD/ounce
Contrary to the relatively limited increase of the domestic market, world gold prices had a strong week of increase.
On the morning of August 1, world gold was listed around 4,041.7 USD/ounce. By the morning of August 8, the price increased to 4,341.3 USD/ounce.
Thus, after a week, world gold increased by 299.6 USD/ounce, equivalent to about 7.4%.
In the same period, the selling price of SJC gold bars at Phu Quy and DOJI only increased from 141 to 144 million VND/tael, equivalent to an increase of 3 million VND/tael, about 2.1%. This shows that the growth rate of domestic gold is significantly lower than the world market.
Notably, the buying - selling difference is currently still at 3 million VND/tael at Phu Quy for gold bars and gold rings; while some products at DOJI and Bao Tin Minh Chau have a difference of up to 4 million VND/tael.
The article only reflects market developments, not investment recommendations. People need to be cautious, avoid the fear of missing opportunities (FOMO) when prices fluctuate strongly. The high buying-selling difference can cause buyers to lose even when prices increase; if world gold reverses to decrease, the domestic market may also be under adjustment pressure.
