Gold items displayed for sale at a DOJI store (Photo: courtesy of DOJI)Hanoi (VNS/VNA) - The recent surge of gold prices may cause risks forindividual buyers, experts and analysts have warned.
At sensitive times, gold firms expand the difference between selling and buyingprices to ensure buyers share risks with the shops, so people should thinktwice before purchasing gold, economist Nguyen Tri Hieu said.
“Gold buyers should be careful because the difference between selling andbuying prices on the local market and the gap between domestic and global pricesmay hurt their pockets,” he said.
“The sharp increase of gold prices in recent days is an opportunity forspeculation but the risk is also high,” he said.
There is still a chance to invest in gold in the near future but buyers shouldaccept the risks that come with it, Hieu added.
“Gold could move 10 percent up by the end of the year but it can also fall 10 percent.”
“If that risk is acceptable, buyers can pour money into gold but they shouldnot spend all on it,” he said.
It may be the time for previous buyers to take advantage of increasing goldprices to lock in gains, DOJI Gold and Gems Group JSC (DOJI) analysts said.
Gold prices will swing widely in its uptrend and investors may suffer a lot onthe way, they said.
Selling gold prices listed at Bao Tin Minh Chau, SJC and Doji on July 30 were 56.4-56.65million VND (2,437-2,448 USD) per tael and buying prices were 57.3-57.92million VND (2,476-2,503 USD) per tael.
Gold futures displayed on CME Group were at 1,950.3 USD an ounce or 2,600.4 USDper tael.
TheUS central bank Federal Reserve on Wednesday night kept interest ratesunchanged and said the rates would remain until the economy recovers.
The move depreciated the US dollar and pushed safe-haven assets like gold up.
The surge of gold prices in recent weeks has made gold the top safe-havenasset, replacing real estate, Tran Khanh Quang, CEO of property developer VietAn Land, said.
Sharply-increasing gold prices have shaken up investors’ investment prioritiesamid volatile financial markets, he said.
Real estate, gold, securities and interest rates are references for investorsto decide how they will spend money in the future, Quang said.
Among the four elements, interest rates are low, the stock market is strugglingand the real estate sector is still trapped in administrative and legal issues,so their weights in investors’ portfolios weaken, he said.
Meanwhile, worries about the global economic recession make gold among thesafest assets, he added.
When the gold market stabilises, attention will return to the real estatesector as the most valuable asset for Vietnamese investors, Quang said.
In the past, people often stockpiled gold which hurt the real estate market,but since all property transactions are made in dong and policies are in placeto prevent gold speculation, land transactions have increased and gold hasbecome cheaper, he said.
If interest rates keep falling, financial-banking institutions will be incash surplus so more capital will flow into the real estate sector rather thaninto gold, he forecast.
But in the short run, real estate would be hurt because the COVID-19 pandemichas ravaged local industries like tourism while lower incomes would alsoprevent people from buying property, he said.
On the opposite side, CEO of Dai Phuc Real Estate JSC Nguyen Thi Thanh Huongsaid increased gold prices in July would not dampen the long-term confidence inthe property sector.
“The COVID-19 pandemic and the US-China tension are two major causes of theincreased gold prices. The speculation of gold does not expand the economybecause it does not create the cash flow for business activities,” she said.
There are various investment options in the last 20 years but real estateproducts in Vietnam are still the top priority, she said./.
At sensitive times, gold firms expand the difference between selling and buyingprices to ensure buyers share risks with the shops, so people should thinktwice before purchasing gold, economist Nguyen Tri Hieu said.
“Gold buyers should be careful because the difference between selling andbuying prices on the local market and the gap between domestic and global pricesmay hurt their pockets,” he said.
“The sharp increase of gold prices in recent days is an opportunity forspeculation but the risk is also high,” he said.
There is still a chance to invest in gold in the near future but buyers shouldaccept the risks that come with it, Hieu added.
“Gold could move 10 percent up by the end of the year but it can also fall 10 percent.”
“If that risk is acceptable, buyers can pour money into gold but they shouldnot spend all on it,” he said.
It may be the time for previous buyers to take advantage of increasing goldprices to lock in gains, DOJI Gold and Gems Group JSC (DOJI) analysts said.
Gold prices will swing widely in its uptrend and investors may suffer a lot onthe way, they said.
Selling gold prices listed at Bao Tin Minh Chau, SJC and Doji on July 30 were 56.4-56.65million VND (2,437-2,448 USD) per tael and buying prices were 57.3-57.92million VND (2,476-2,503 USD) per tael.
Gold futures displayed on CME Group were at 1,950.3 USD an ounce or 2,600.4 USDper tael.
TheUS central bank Federal Reserve on Wednesday night kept interest ratesunchanged and said the rates would remain until the economy recovers.
The move depreciated the US dollar and pushed safe-haven assets like gold up.
The surge of gold prices in recent weeks has made gold the top safe-havenasset, replacing real estate, Tran Khanh Quang, CEO of property developer VietAn Land, said.
Sharply-increasing gold prices have shaken up investors’ investment prioritiesamid volatile financial markets, he said.
Real estate, gold, securities and interest rates are references for investorsto decide how they will spend money in the future, Quang said.
Among the four elements, interest rates are low, the stock market is strugglingand the real estate sector is still trapped in administrative and legal issues,so their weights in investors’ portfolios weaken, he said.
Meanwhile, worries about the global economic recession make gold among thesafest assets, he added.
When the gold market stabilises, attention will return to the real estatesector as the most valuable asset for Vietnamese investors, Quang said.
In the past, people often stockpiled gold which hurt the real estate market,but since all property transactions are made in dong and policies are in placeto prevent gold speculation, land transactions have increased and gold hasbecome cheaper, he said.
If interest rates keep falling, financial-banking institutions will be incash surplus so more capital will flow into the real estate sector rather thaninto gold, he forecast.
But in the short run, real estate would be hurt because the COVID-19 pandemichas ravaged local industries like tourism while lower incomes would alsoprevent people from buying property, he said.
On the opposite side, CEO of Dai Phuc Real Estate JSC Nguyen Thi Thanh Huongsaid increased gold prices in July would not dampen the long-term confidence inthe property sector.
“The COVID-19 pandemic and the US-China tension are two major causes of theincreased gold prices. The speculation of gold does not expand the economybecause it does not create the cash flow for business activities,” she said.
There are various investment options in the last 20 years but real estateproducts in Vietnam are still the top priority, she said./.
VNA
