Reasons for buyers' losses despite high gold prices

At the end of the trading session on February 23, the price of SJC gold bars at DOJI Group was listed at VND89.4-91.7 million/tael (buy - sell), an increase of VND2.1 million/tael for buying and VND1.4 million/tael for selling compared to last week. Similarly, gold price at Saigon Jewelry Company SJC also recorded a significant increase.

It is noteworthy that the difference between the buying and selling prices of SJC gold at DOJI is up to 2.3 million VND/tael.

At the same time, the price of 9999 Hung Thinh Vuong round gold rings at DOJI was listed at 90-91.7 million VND/tael (buy - sell); an increase of 1.7 million VND/tael for buying and an increase of 1.4 million VND/tael for selling compared to the closing price of the previous trading session.

Bao Tin Minh Chau listed the price of gold rings at 90.2-91.8 million VND/tael (buy - sell); an increase of 1.75 million VND/tael for buying and an increase of 1.5 million VND/tael for selling compared to the closing price of the previous trading session.

The difference between buying and selling gold rings at DOJI is 1.7 million VND/tael and at Bao Tin Minh Chau is 1.6 million VND/tael. Although not as high as the difference between buying and selling SJC gold, this difference still puts investors at risk of losses even when the gold price increases.

If an investor buys SJC gold at DOJI on February 16 at VND87.3 million/tael and sells it on February 23 at VND89.4 million/tael, the difference between buying and selling is VND2.3 million/tael, causing them to lose VND900,000/tael despite the sharp increase in gold prices. Similarly, with 9999 gold rings, investors buying at DOJI lost 300,000 VND/tael, while buyers at Bao Tin Minh Chau lost 100,000 VND/tael.

The main reason for this situation is the high difference in buying and selling prices. When buying gold, investors immediately suffer a loss equivalent to this difference. Only when gold prices increase beyond the difference does they have a chance to make a profit.

Therefore, during the investment process, buyers need to monitor the price difference. The important thing is not only whether gold prices increase or decrease, but also the gap between buying and selling prices. If the margin difference is too high, investors will have difficulty making a profit, especially in short-term transactions.

The distinction between SJC gold and 9999 gold rings is also a factor to note. 9999 gold rings often have a lower difference than SJC gold bars and fluctuate closer to the world gold price. Meanwhile, SJC gold is affected by domestic supply and demand and operating policies, leading to a higher difference.

When gold prices increase sharply but the difference between buying and selling is still high, investors should consider waiting for adjustments to have more reasonable prices, minimizing the risk of losses.

Consulting experts and updating market news is an important factor to help investors have a more overview, thereby making accurate decisions. Closely monitoring the developments of the domestic and world gold markets will help investors be proactive in their trading strategies.

Although gold prices tend to increase, investors can still suffer losses if they do not carefully consider the difference between buying and selling prices. Understanding the domestic gold price mechanism, distinguishing between gold types and choosing a reasonable trading time will help optimize profits and limit risks. In the context of the gold market continuing to fluctuate, continuous updating of information is necessary to make effective investment decisions.