Prices increase but are not enough to compensate for the buying-selling difference
Closing the week's trading session, Saigon Jewelry Company SJC and DOJI both listed SJC gold bar prices at the threshold of 145.7-148.7 million VND/tael (buying - selling), the buying - selling difference was at 3 million VND/tael.
Compared to the closing session of last week (August 23), SJC gold bar prices in both units increased by 1.1 million VND/tael in both buying and selling directions.
Despite the price increase, buyers from last week still did not make a profit. If buying SJC gold bars on August 23 and reselling them on August 30, buyers at SJC and DOJI both lost about 1.9 million VND/tael.
The reason is that when buying gold, people have to pay according to the selling price of businesses, but when selling, it is only calculated according to the buying price. Therefore, the increase of 1.1 million VND/tael in a week is not enough to compensate for the difference between buying and selling of 3 million VND/tael.
Gold rings in some places record higher losses
The above situation is more clearly shown in the gold ring market. DOJI currently lists gold ring prices at 145.7-149.7 million VND/tael (buying - selling), an increase of 200,000 VND/tael in both directions compared to the end of last week.
Notably, the difference between buying and selling gold rings at this unit is up to 4 million VND/tael. This is a factor that causes buyers to suffer large losses if trading in a short time.
Accordingly, if buying gold rings at DOJI on August 23 with a selling price of 149.5 million VND/tael, by August 30, businesses would buy back at a price of 145.7 million VND/tael. Thus, even though the current listed price is higher than a week ago, buyers still lose up to 3.8 million VND/tael.
At Phu Quy Gold and Gems Group, the price of gold rings is listed at 145.7-148.7 million VND/tael, an increase of 1.1 million VND/tael in both directions compared to the end of last week. The buying - selling gap is currently at 3 million VND/tael.
If buying gold rings at Phu Quy in the August 23rd session and reselling them in the August 30th session, buyers will also lose about 1.9 million VND/tael.
High buying-selling spread, investors need to be cautious
It can be seen that a noteworthy risk for gold buyers today is that the difference between the buying and selling prices is still high, commonly from 3-4 million VND/tael at some businesses. This difference makes buyers almost immediately record a significant loss immediately after the transaction, especially if they have to resell in a short time. Gold prices need to increase strongly enough to compensate for this difference before buyers can break even.
In the context of strong gold price fluctuations, investors need to avoid the FOMO - chasing buying mentality just because of fear of missing opportunities when prices increase. Spending money in high price areas, while the buying-selling range is wide, can significantly increase the risk of losses if the market reverses direction.
In particular, using financial leverage or borrowing money to buy gold is even more risky. When prices fall rapidly, losses from price fluctuations may add capital costs, creating great financial pressure for buyers.
At the present time, world gold prices are under downward pressure. If this trend continues, the domestic gold market may also be affected, although the extent and timing of the adjustment depend on domestic supply and demand as well as exchange rate developments.
Therefore, for those who buy gold at high prices, especially short-term transactions, the risk of losses may increase sharply if world prices continue to fall while the buying-selling spread in the country remains high.
The article only updates market developments, not investment recommendations. Investors need to be cautious in the face of strong market fluctuations and carefully consider risk factors before making decisions.
