Paradox between world and domestic gold
After 3 months, the gold market recorded mixed movements between domestic and international markets. While world gold prices increased from 4,537.1 USD/ounce on May 26 to 4,656.6 USD/ounce on August 26, equivalent to an increase of 119.5 USD/ounce (about 2.63%), domestic SJC gold bar and 9999 gold ring prices decreased sharply.
This development makes it impossible for gold buyers at high prices at the end of May to make a profit, or even suffer a large loss if they sell at the present time.
SJC gold bars fell by nearly 14 million VND/tael
Data from gold businesses shows that the price of SJC gold bars on May 26 was listed around 156.3-161.5 million VND/tael. After 3 months, the price of SJC gold bars decreased to 147.6-154 million VND/tael depending on the brand. In general, the buying price decreased by about 5.4-6.9%, while the selling price decreased by about 4.6-6.8%.
In Phu Quy, the price of SJC gold bars decreased from 158.3 million VND/tael to 147.6 million VND/tael on the buying side, equivalent to a decrease of 10.7 million VND/tael. On the selling side, it decreased from 161.5 million VND/tael to 150.6 million VND/tael, down 10.9 million VND/tael.
With this price, gold buyers at Phu Quy on May 26 if sold on August 26 may suffer a loss of about 13.9 million VND/tael.
At DOJI, SJC gold bar prices also decreased by 10.9 million VND/tael in both buying and selling directions, from 158.5-161.5 million VND/tael to 147.6-150.6 million VND/tael. Gold buyers at the end of May can currently lose about 13.9 million VND/tael.
Meanwhile, at Bao Tin Minh Chau, SJC gold bar prices decreased slightly. The buying side decreased by 8.5 million VND/tael, from 158.5 million VND/tael to 150 million VND/tael; the selling side decreased by 7.5 million VND/tael, from 161.5 million VND/tael to 154 million VND/tael. Gold buyers at the time of May 26 may lose about 11.5 million VND/tael.
9999 gold rings are also not yet profitable
Not only SJC gold bars, 9999 gold rings also recorded a downward trend after 3 months.
In Phu Quy, the price of gold rings decreased from 158.6-161.3 million VND/tael to 147.6-151 million VND/tael. In which, the buying side decreased by 10.7 million VND/tael, and the selling side decreased by 10.3 million VND/tael. Gold buyers at the end of May, if they sell now, may lose about 13.7 million VND/tael.
At DOJI and Bao Tin Minh Chau, the price of gold rings both decreased from 158.5-161.5 million VND/tael to 150-154 million VND/tael. The buying side decreased by 8.5 million VND/tael, the selling side decreased by 7.5 million VND/tael. The loss of gold buyers after 3 months is about 7.5 million VND/tael.
The contrast between world and domestic gold prices shows that the profitability of investors not only depends on international trends but is also greatly affected by domestic price differences.
In the period at the end of May, domestic gold prices were pushed to a high level. When the market adjusted down, combined with the high gap between buying and selling prices, buyers suffered heavy losses.
Currently, the buying - selling price difference at some brands is still at 3-4 million VND/tael. This is a large cost that makes it difficult for buyers to make profits in a short time, even when world gold prices maintain an upward trend.
People need to be cautious about the psychology of buying gold in crowds when prices increase sharply, avoid falling into the situation of buying in high areas and then suffering loss pressure when the market reverses direction.
The article only updates the developments of gold prices in the market, not investment recommendations.
