Reasons why buyers suffered heavy losses despite high gold prices last week

Although domestic gold prices last week recorded a fairly strong increase, many gold buyers still suffered losses of more than 1 to 1.5 million VND per tael. This reality shows that the increase in gold prices is not enough to cover arising costs, especially the buying - selling gap is being pushed to too high a level.

At the end of the trading session of the week, the price of SJC gold bars at many large enterprises was listed around 154.3 - 156.3 million VND/tael, an increase of more than 2 million VND compared to a week ago. However, the difference between the buying and selling prices remains at about 2 million VND/tael.

This means that as soon as the purchase transaction was completed, the buyer had to accept a large "technical" loss. In the context of prices increasing around 1.5 - 2.1 million VND/tael for the whole week, most of the profits have been eliminated by this difference.

For 9999 gold rings, the situation is even less positive. Although the price of gold rings also increased from 1.5 - 1.8 million VND/tael last week, the difference between buying and selling of up to 3 million VND/tael has put buyers at a disadvantage.

As a result, if buying gold rings from the trading session on December 7 and selling in the session of December 14, buyers at many businesses will still lose from 1.2 to 1.5 million VND/tael, even though the listed price is still increasing on the outside.

Another important reason comes from the lack of steady increase in gold prices in both buying and selling directions. In many cases, the selling price is adjusted to increase more strongly, while the buying price increases more slowly, causing the profit to be inclined towards gold trading enterprises. This significantly reduces the profit opportunities of individual investors, especially those who tend to buy - sell in a short time.

In the world market, gold prices also recorded positive developments. At the end of the trading session of the week, the world gold price was listed at 4,298.7 USD/ounce, up 101.4 USD compared to a week ago.

In the context of domestic prices anchored at high levels, businesses often maintain buying prices at a cautious level to control risks, thereby causing the buy-sell gap to continue to widen.

In addition to market factors, the psychology of buying gold on the increase is also contributing to many people falling at a disadvantage. As gold prices are constantly mentioned with record highs, many buyers of gold expect prices to increase sharply in the short term. However, reality shows that even when prices increase, profits can still be "eaten" by the difference between buying and selling and the way businesses adjust prices.

In the context of the high difference between buying and selling gold, the risk for buyers is increasing. Buying gold according to the FOMO psychology, chasing high prices can put buyers at risk of losses even when the market is still in an uptrend.

People should carefully consider holding goals, prioritize long-term investment and fully calculate transaction costs to limit financial risks in the current period of strong gold price fluctuations.