Buying SJC gold bars, losing 10 million VND/tael per week
On July 26, some businesses such as Saigon SJC Jewelry Company and DOJI listed SJC gold bar prices at 137.5 million VND/tael for buying and 141.5 million VND/tael for selling. The difference between the two directions is at 4 million VND/tael.
Compared to the last session of last week (July 19), gold bar prices at the two enterprises both decreased by 7 million VND/tael on the buying side and decreased by 6 million VND/tael on the selling side.
Thus, the buyer of SJC gold bars in the session on July 19 had to pay 147.5 million VND/tael. By the session on July 26, if resold at the price the enterprise bought at 137.5 million VND/tael, the buyer would lose 10 million VND/tael after only one week. This loss included 6 million VND/tael due to the selling price decrease and 4 million VND/tael due to the buying - selling difference.
With a buying - selling difference of 4 million VND/tael, new buyers already suffered corresponding losses if they resold immediately.
Gold ring buyers also lose nearly 9 million VND/tael
Not only SJC gold bars, buyers of plain round gold rings also suffered a large loss after holding for a week.
DOJI Group closed the week with gold ring prices at 138.5 million VND/tael for buying and 142.5 million VND/tael for selling. Both directions decreased by 4.8 million VND/tael compared to the session on July 19.
A week ago, buyers had to pay about 147.3 million VND for each tael of gold rings at DOJI. If resold in the session on July 26 at the buying price of 138.5 million VND/tael, the recorded loss is 8.8 million VND/tael.
At Phu Quy Gold and Gems Group, the price of gold rings was listed at 137.5-141.5 million VND/tael. The buying price decreased by 5.5 million VND/tael, while the selling price decreased by 5 million VND/tael after a week.
With a selling price of about 146.5 million VND/tael in the session on July 19, gold ring buyers at Phu Quy will lose about 9 million VND/tael if they resell in the session on July 26.
The above developments show that gold buyers in the short term are not only affected by the downward trend of the market but also have to bear additional costs due to the high buying - selling gap.
World prices fall, short-term prospects are still under pressure
Closing the weekly trading session, world gold prices stood at 4,051.7 USD/ounce, down 34.4 USD compared to a week ago. The downward trend of world prices is one of the factors causing the domestic gold market to bear adjustment pressure.
Investors need to pay special attention to the buying - selling difference in the country which is up to 4 million VND/tael. This gap causes buyers to immediately suffer losses after trading and can only break even when the price increases strongly enough to compensate for the difference.
Meanwhile, the short-term outlook for world gold prices still leans towards a cautious trend. If world gold prices fall, the domestic market will be under great pressure and face the risk of falling accordingly.
In a survey by a precious metals website with 18 Wall Street experts, only 4 people, equivalent to 22%, predicted gold prices would increase next week. 7 experts, accounting for 39%, said prices would decrease, while the remaining 7 predicted the market would move sideways.
Thus, up to 78% of experts do not expect gold prices to increase in the short term. This result shows that adjustment pressure is still present, while the possibility of a strong price breakthrough is not highly assessed.
In the context of unpredictable price fluctuations, investors should not chase after the psychology of fearing missing opportunities. Using borrowed capital, putting most of the money into gold or spending money in hot uptrend sessions may increase losses if the market continues to go down.
The information in the article is only intended to update market developments, not investment recommendations.
