Buying - selling difference of 3 million VND/tael, investing in gold during Tet holiday and God of Wealth day

The difference between buying and selling gold prices is over 3 million VND/tael.

The price of SJC gold bars on God of Wealth Day remained high at over 78 million VND/tael (selling price), while the buying price was only around 75.4 million VND/tael. The difference between buying and selling prices was up to over 3 million VND/tael.

As for the price of 9999 gold rings, the difference between buying and selling prices is also over 1 million VND/tael. Why is the gap between buying and selling prices so wide?

Speaking to PV. VietNamNet, Mr. Huynh Trung Khanh, Vice President of the Vietnam Gold Business Association, advisor to the World Gold Council in Vietnam, said that this difference between buying and selling prices originated after the time when gold prices skyrocketed at the end of December 2023, when the Prime Minister directed on gold market management, gold prices turned to decrease by 4 - 5 million VND/tael.

gold investment.jpg — Should we invest in gold on God of Wealth day? (Photo: Chi Hieu)

“Gold trading units are afraid of risks so they have increased the buying and selling margin to 2 - 2.5 million VND/tael of SJC gold, while before the difference was only about 1 million VND/tael; they “push” the risk onto consumers. There is also no law to control the maximum difference between buying and selling prices. The State Bank does not protect prices, does not manage prices; the market decides the gold price,” said Mr. Khanh.

Also sharing with VietNamNet , gold expert Tran Duy Phuong said that when gold prices fluctuate, the gap between buying and selling prices widens.

He said that when gold is scarce, gold trading companies increase the difference between buying and selling prices to ensure the safety of the business itself. The large gap between buying and selling prices also has a significant impact on investors when deciding to participate in the market.

However, according to Mr. Phuong, this gap will only narrow around March and April.

“Usually, March, April, May and June are the months when the market is less active, so the difference between buying and selling prices narrows to stimulate demand. Currently, although 9999 gold rings have a difference between buying and selling prices of 1 million VND/tael, it still has a higher safety level than SJC gold.

Moreover, gold rings follow the world price more closely, so when the world price increases, 9999 gold rings also increase. Meanwhile, the price of SJC gold is already much higher than the world price, so when the world price increases, it will be difficult to increase, and may even decrease," Mr. Phuong noted.

Buying dozens of taels for investment… should wait

According to Mr. Huynh Trung Khanh, people buy gold on God of Wealth day based on psychology, tradition and customs.

With the current difference between buying and selling prices, Mr. Khanh noted that if you buy gold for investment, you should not buy it on God of Fortune Day, and if you buy it for luck, you should only buy 1-2 taels. If you buy a large quantity for investment, you should wait until after God of Fortune Day.

“On God of Fortune Day, people only buy gold for luck, no one sells gold. No one is foolish enough to buy gold on God of Fortune Day and then sell it right after that day, to incur a loss. Gold prices usually decrease after God of Fortune Day, but if the world price skyrockets, the domestic gold price will also increase, not decrease,” Mr. Khanh commented.

Sharing the same opinion, expert Tran Duy Phuong also said that when buying gold on God of Fortune Day, you should only buy 1-2 taels for luck, it is not necessary to buy a large quantity because the risk after this day is quite high.

“If you want to buy dozens of taels, you should not buy on God of Wealth Day. You should wait until March or April to buy; then the price will be more reasonable and the profit margin will be higher. Normally, from the second quarter, the world gold price cycle will be flat or down, the domestic gold market will also develop similarly,” said Mr. Phuong.

Besides, according to the expert, whether buying gold on God of Fortune Day for luck or for investment, you should buy 9999 gold rings. The reason is that this type of gold has a relatively low difference in world price compared to SJC gold; while SJC gold has a difference of about 17 - 18 million VND/tael.

“Buying SJC gold will be quite risky if the State Bank intervenes, narrowing the gap between domestic and world prices. Even if the world price increases, it is not certain that the SJC gold price will increase because the difference in SJC gold price is too large. Therefore, buying SJC gold will not be beneficial for investors. Buying 9999 gold rings will be safer,” Mr. Phuong stated his opinion.

Buy gold on God of Wealth day, profit 39 million VND/tael after 5 years

“After selling the gold I bought on God of Wealth Day, I made a profit of more than 39 million VND/tael. This was an unexpected profit when I bought gold for luck in previous years.”

Beautiful gold collections for God of Wealth day

The golden dragon reaching for the clouds like a fish in water, symbolizing aspiration and strong will to rise, is one of the products to serve customers on God of Wealth Day that gold shops have prepared since after Lunar New Year.

Price around peak 79 million, people crowded to buy gold before God of Wealth day

Gold prices fluctuated today, hovering around 79 million VND/tael. At gold shops, people have been jostling to buy gold for the past two days before the God of Wealth's day.

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