For those who bought gold at high prices from last weekend, the loss not only came from the decrease in gold price listing but was also amplified by the buying-selling difference at gold businesses.
Closing the week's trading session, Saigon SJC Jewelry Company listed the price of SJC gold bars at 160.5-163.5 million VND/tael for buying - selling. Compared to the closing session of the previous week's trading session on May 10, the price of SJC gold bars at this unit decreased by 4 million VND/tael in both buying and selling directions.
At DOJI, the price of SJC gold bars was also listed at 160.5-163.5 million VND/tael for buying - selling. Compared to the closing session of last week, the price of SJC gold bars at DOJI decreased by 4 million VND/tael in both directions.
Notably, the buying - selling price difference at gold trading units is currently maintained at 3 million VND/tael. This is the reason why the actual loss of buyers is much higher than the listed price decrease of gold.
If buying SJC gold bars in the May 10th session and selling them in the May 17th session, buyers at Saigon SJC and DOJI Jewelry Company both lost 7 million VND/tael. Of which, 4 million VND/tael came from the decrease in gold prices during the week, and 3 million VND/tael came from the gap between buying and selling prices.
This development shows that in the context of strong market fluctuations, buying short-term gold poses great risks. In just one week, buyers are not only affected by the downward trend of gold prices but are also "easted" by the high buying-selling difference.
Not only SJC gold bars, the 9999 gold ring market also recorded a sharp decrease. DOJI Group listed the price of gold rings at 160.5-163.5 million VND/tael for buying - selling, down 4 million VND/tael in both directions compared to the closing session of last week. The buying - selling difference is at 3 million VND/tael.
With this development, if buying gold rings at DOJI on May 10 and selling them on May 17, buyers would also lose 7 million VND/tael.
At Phu Quy Gold and Gems Group, the price of gold rings is listed at 160.5-163.5 million VND/tael for buying - selling, down 3.8 million VND/tael in both directions. The buying - selling difference is at 3 million VND/tael. Accordingly, gold ring buyers at Phu Quy lost about 6.8 million VND/tael after a week.
A loss of nearly 7 million VND/tael in a short period reflects the risk when investors buy gold at high prices, especially in the context of domestic gold prices continuously adjusting according to international fluctuations. For those who need to surf or hold for the short term, the high buying-selling difference causes the breakeven point to be significantly pushed up.
In other words, gold prices do not need to fall too deeply, buyers can still lose big if they have to sell in a short time. When the buying-selling difference reaches 3 million VND/tael, investors who just bought gold immediately suffer disadvantages if the market does not continue to increase sharply.
Domestic gold prices are greatly affected by the diễn biến of world gold prices. Closing the weekly trading session, world gold prices were listed at 4,539.2 USD/ounce, down 174.5 USD compared to a week ago. The sharp decline of international gold prices put pressure on the domestic market, causing both SJC gold bars and gold rings to go down.
In a period of strong gold price fluctuations, the high gold buying-selling spread poses many risks for buyers. Investors should not be FOMO when prices fluctuate rapidly, need to carefully consider demand, holding time and loss-bearing capacity and world economic and geopolitical factors that may affect gold before depositing money.
