Gold price increases, why buying still causes heavy losses

Heavy losses when investing in "surfing"

At the end of this week's trading session, DOJI Group listed the price of SJC gold at 87.5-89.5 million VND/tael (buy - sell). Compared to the closing session of last week, the gold price at DOJI increased by 500,000 VND/tael for both buying and selling. The difference between the buying and selling prices of SJC gold at DOJI Group is at 2 million VND/tael.

Meanwhile, Saigon Jewelry Company SJC listed the price of SJC gold at 87.5-89.5 million VND/tael (buy - sell). Compared to the closing price of the previous trading session, the gold price at Saigon Jewelry Company SJC increased by 500,000 VND/tael for both buying and selling. The difference between the buying and selling price of SJC gold at Saigon Jewelry Company SJC is at 2 million VND/tael.

Last week, the price of SJC gold increased, but investors still suffered losses. If they bought SJC gold at DOJI Group on October 27 at VND89 million/tael and sold it today (November 3), investors would lose VND1.5 million/tael. Similarly, those who bought gold at Saigon Jewelry Company SJC would also make a profit of VND1.5 million/tael.

This morning, the price of 9999 Hung Thinh Vuong round gold ring at DOJI was listed at 88-89 million VND/tael (buy - sell); an increase of 100,000 VND/tael for both buying and selling compared to the closing price of last week's trading session.

Bao Tin Minh Chau listed the price of gold rings at 87.98-88.98 million VND/tael (buy - sell); increased by 100,000 VND/tael for buying and kept the same for selling compared to the closing price of last week's trading session.

After a slight increase in the week, if buying gold rings in the session of October 27 and selling in today's session (November 3), the loss that investors will have to accept when buying at DOJI and Saigon Jewelry Company is VND900,000/tael and VND1 million/tael, respectively.

Why?

The price of SJC gold bars last week increased higher than that of gold rings, but buyers of gold bars suffered heavier losses. The main reason was that the difference between buying and selling gold bars was 1 million VND/tael higher than that of gold rings.

It is understandable that when buying SJC gold bars at DOJI on October 27, investors need to wait for the gold price to increase by over VND2 million/tael to make a profit. Meanwhile, when buying gold rings here, the price only needs to increase by over VND1 million/tael for investors to start making a profit.

In recent sessions, the price of SJC gold bars has been unpredictable. Meanwhile, the price of plain gold rings has followed closely the world market. In the context that many stores have stopped selling SJC gold bars, investors are rushing to buy plain gold rings.

However, according to Lao Dong reporters in Hanoi in many recent trading sessions, buying plain gold rings is also very difficult when stores sell them in small drops, at irregular hours.