Securities fall, cryptocurrencies collapse, gold investors worry
After selling securities to stop losses, Tran Thi Lan, an investor in Hanoi, decided to invest in gold. With VND700 million, she could buy 10 taels of gold.
At that time, the gold price stood at VND69.2 million per tael. She felt happy about her decision, believing that gold is a safe and profitable investment channel which can bring a profit by the year end.
However, contrary to her prediction, gold prices in the domestic market have been decreasing. Within two months, gold prices dropped by VND2 million per tael, causing a loss of VND20 million.
Nguyen Thi Ngoc, another investor, also is worried about gold price decreases.
One month ago, when the gold price decreased to VND68 million, she decided to withdraw bank deposits to buy 5 taels of gold. But within one month, the gold price dropped further to VND67.5 million per tael. If she sells gold at this time, she will incur a loss of VND5 million.
At gold shops, there are not many people buying gold, a contrast with the time when gold prices escalated. Some investors have rushed to sell gold to take a profit, while others are not selling gold as they believe the situation still shows no signs of abatement.
Investors who bought gold at VND74 million per tael in March, when the price was at its peak, will incur a loss of VND6.5 million per tael if they sell gold now.
Hoarding gold is a traditional investment channel of Vietnamese who believe that this is the safest shelter amid uncertainties. However, experts have advised investors to be cautious when pouring money into gold because risks always exist.
Some investors have made a profit as they sold gold right away when the price was high enough to bring expected profits, while others decided not to sell gold, and so have taken a loss.
9999 SJC gold was traded at VND67.35 million per tael (buy) and VND67.95 million (sell) late last week. SJC HCM City quoted prices at VND67.35-67.97 million per tael.
Meanwhile, Doji prices decreased to VND67.3 million per tael (buy). Doji Hanoi quoted prices of VND67.3-67.9 million per tael, while Doji HCM City VND67.35-67.9 million.
Gold prices in the world market have been decreasing, hitting an 11-month low amid the prediction that the US FED will tighten monetary policy. The gold price with August delivery has decreased by $24.20 to $1,711.20.
As such, the price gap between the world and Vietnam is VND18.92 million per tael.