SJC gold price drops more than 3% in one month
At the end of July 31, SJC gold bar prices were listed at 137.9-141.9 million VND/tael, corresponding to both buying and selling prices.
Compared to the level of 143.4-146.4 million VND/tael on July 1, the buying price of SJC gold has decreased by 5.5 million VND/tael. The selling price decreased by 4.5 million VND/tael.
Calculated as a percentage, the selling price of SJC gold bars decreased by about 3.1% in July. The buying direction decreased by about 3.8%.
Fluctuations in both directions caused the buying - selling price difference of SJC gold to increase from 3 million VND/tael at the beginning of the month to 4 million VND/tael at the end of the month.
The expanded buying - selling margin increases the short-term gold buyer shortfall. A person who buys one tael of SJC gold bars on July 1st at a price of 146.4 million VND, if they resell it at the end of July 31st according to the enterprise's purchase price of 137.9 million VND, will receive less than 8.5 million VND.
This difference is equivalent to about 5.8% of the initial amount. This is a calculation based on the listed buying and selling prices of gold at two times. The decrease in value only becomes a real loss when the owner sells gold.
The buyer's shortfall is higher than the decrease of 4.5 million VND of the selling price because it is necessary to calculate the gap between the buying and selling prices.
Gold ring prices fall more sharply than gold bars
SJC gold ring prices also went down in July. On July 1st, SJC's 99.99% gold ring price of 1-5 chi type was listed at 143.3-146.3 million VND/tael. By the end of July 31st, the price decreased to 137.4-114.4 million VND/tael.
After a month, the selling price of gold rings decreased by 4.9 million VND/tael, equivalent to about 3.35%. The buying price decreased by 5.9 million VND/tael, equivalent to more than 4.1%.
Compared to the price of gold bars of the same brand, the selling price of gold rings decreased more by about 400,000 VND/tael in July. By the end of the month, the buying and selling prices of SJC gold rings were both lower than gold bars by about 500,000 VND/tael.
People who buy a quantity of SJC gold rings at the beginning of the month at a price of 146.3 million VND, if resold at the end of the month at a purchase price of 137.4 million VND, will lose about 8.9 million VND. The difference is equivalent to more than 6% of the money spent.
The decrease in the price of gold rings and gold bars is not significantly different if only comparing selling prices. However, the buying direction decreased faster, causing buyers to suffer a higher shortfall when calculating a whole round of transactions.
This data also shows that the profitability of gold buyers cannot only be calculated by the difference between the two selling prices. The actual result also depends on the price the business buys back at the time of transaction.
World gold prices end four months of decline
While domestic gold prices went down, world gold prices increased by about 1.1% in July. This is the first month of increase for the precious metal after four consecutive months of decline.
At the end of the session on July 31, spot gold prices on the international market fluctuated around 4,050 USD/ounce. Prices decreased in the last session of the month but were still higher than the level recorded at the end of June.
Compared to the decrease of about 3.1% of the selling price of SJC gold bars, the performance difference between world gold prices and domestic gold prices is about 4.2 percentage points.
Two markets went in opposite directions in July. International gold prices recovered slightly, while SJC gold prices and gold ring prices in Vietnam both decreased by more than 3%.
At the end of July, the US Federal Reserve kept the operating interest rate unchanged in the range of 3.5-3.75%. The Fed assessed that economic activity continued to grow at a steady pace, but economic prospects remained highly uncertain.
The diễn biến of world gold prices in the month is also influenced by US inflation data, fluctuations of the USD, bond yields and expectations about the Fed's interest rate policy.
In the last session of the month, the USD and bond yields increased again, putting pressure on gold prices. However, the accumulated increase from previous sessions still helped world gold prices end July in an upward zone.
July data shows that world gold price fluctuations do not fully reflect the results of gold buyers in Vietnam. Domestic buyers are also affected by the difference between domestic and world gold prices, the buy-sell gap and the different pace of price adjustment between gold bars and gold rings.
The calculations in the article are based on the listed gold price list, excluding other transaction costs. The content is for synthesis and data comparison, not investment recommendations.
