Buy gold 74 million dong/tael, it hurts to see the price of gold drop forever

Dose of hugging gold at the peak

Gold is always considered a safe and highly profitable investment channel, so the demand for gold is very large, even many people risking to embrace gold at its peak with the expectation that the price will continue to increase in the future.

At the beginning of 2022, Ms. Tran Thi Linh (Thanh Xuan, Hanoi) withdrew her savings book to buy 2 gold trees for investment, because she believed that the gold price was always stable. Every year, she only buys 1 gold thread for good luck, but this year she decided to use all her savings to buy it. At the beginning of the year, she bought gold at SJC price for about 61 million VND/tael.

After that, the gold price continued to increase sharply, Linh was excited because she had a profit. March 8, gold price was adjusted continuously by gold and silver trading companies and set a new peak of 74 million VND/tael. SJC listed on the Hanoi market at 71.8 million dong/tael (buying in) and 73.42 million dong/tael (sold out). And Doji Jewelry Group also adjusted the selling price of gold to increase sharply, to 72 million dong/tael (buy in) and 74 million dong/tael (sold out).

Realizing that gold is likely to increase further, Linh continues to spend more money to buy gold. With an amount of more than 700 million VND, Linh bought 10 more gold trees at that time. “Gold increases every year, so the opportunity is great,” Linh assessed.

However, the market was not as expected by Ms. Linh, gold price turned to decrease. “Swinging to the top” to buy gold, only two days later, she lost 8.9 million dong/tael. She continued to hope: “Gold will decrease but it won’t fall as badly as stocks, I think one day it will return to 74 million. VND/tael”.

Recently, the price of gold has continuously adjusted down, and Linh is sadder when she sees news about gold. In the trading session of May 25, the price of 9999 gold of SJC decreased by 900 thousand dong in the buying afternoon and 800 thousand dong in the selling afternoon. And Doji’s 9999 gold price decreased by 1.1 million dong in the buying afternoon and 1 million dong in the selling afternoon.

At the end of the trading session on May 27, the price of 9999 gold bars at SJC Hanoi was 68.55 million dong/tael (buying in) – 69.55 million dong/tael (sold out). SJC Ho Chi Minh City listed at 68.55 million dong/tael (buy in) and 69.57 million dong/tael (sold out). Doji Hanoi listed at 68.5 million dong/tael (buy in) and 69.45 million dong/tael (sold out). In Ho Chi Minh City, Ho Chi Minh City Doji bought SJC gold at 68.5 million VND/tael and sold it at 69.45 million VND/tael.

Contrary to many people who buy gold, the profit, up to this point, Linh is still losing 55 million dong.

Long-term expectations

Although gold prices fell, but according to experts in the long-term, there are many prospects. Mr. Robert Minter, director of investment strategy in ETFs at ABRDN, a global investment company based in the United Kingdom, said that investment demand in gold will increase this year, when interest rates rise. and high inflation.

In contrast, expert Bui Minh Long said that gold is not a suitable investment channel for long-term. The assets we should invest the most are the ones that bring the best added value. Channels like gold are usually fine in the short term, but in the long term, gold usually doesn’t deliver high performance. Every 10 year cycle, the market will usually have 1-2 years of volatility, creating opportunities for gold. However, if investors see gold as a long-term channel, they have missed the opportunity in the remaining 8 years.

According to calculations by the analysis team Dragon Capital, in the 10-year and 20-year time frames, the return on gold is only higher than holding USD, and lower than the other three investment channels, which are real estate. , bonds and stocks.

A representative of a gold business said that, at this moment, buying gold might not be a wise decision because the element of surprise is gone. However, for investors with idle money in the long term, gold is an investment channel that should not be ignored. The proof is that a few months ago, the central banks of a series of countries (such as China) and large investment funds rushed to buy.

Experts recommend, if investing in gold, investors should determine long-term investment, invest only a certain percentage, depending on their risk appetite. At the same time, the gold price must be updated regularly to take profits at the right time.

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