Gold ring price highest in history, should you invest?

Last week, the price of gold rings continuously broke old records to set new peaks. At the end of the week, the price of gold rings was listed by Doji at 87.9 - 88.9 million VND/tael. There was a time when the price of gold rings was listed at 88 - 89 million VND/tael, equal to the price of gold bars.

According to experts, at a time when gold ring prices are continuously reaching historical peaks, investors should be cautious and not invest according to crowd psychology.

According to economic expert Dinh Trong Thinh, plain gold rings were previously often bought as gifts, but now many people are looking to buy them to accumulate assets. However, at this time, the price of gold is increasing, difficult to predict, people should not buy and sell large quantities of gold.

" For buyers, if the price is too high, it is difficult to avoid following the crowd. For sellers, gold rings are scarce, so they can sell now but it will be difficult to buy later, " he said.

Gold ring price reaches highest peak in history, should you invest?

Gold expert Tran Duy Phuong also said that people should not buy gold if it is not really necessary. Those who bought gold before and made a profit should also consider selling when they have reached the desired profit.

" Buying domestic gold at this time is very easy to 'buy at the peak' if the world price reverses and plummets in the short term. If you sell to take profit and the price continues to increase, you won't regret it because the profit from gold rings since the beginning of the year is 25-30%, which is an attractive level ," Mr. Phuong advised.

Economist, Dr. Dinh The Hien, said that although the price of gold has increased recently, the demand for large quantities of gold from investors is not too high. Some statistics estimate that there are about 500 tons of gold in the hands of the people.

In the past, there were times when investors could spend tens of billions of dong to buy real estate, borrow from banks to buy houses, land, stocks, and then make a profit a few months later.

On the contrary, it is not much for an investor to spend money to buy thousands of taels of gold, so it will be difficult to shift cash flow from other investment channels to gold in large quantities.

Gold is a suitable choice for those who have a safe investment mentality, hoarding is popular but not too large. That is to say, although the gold price is predicted to increase, it is unlikely that investors will pour all their capital and idle money into gold to surf or make a profit in a short time.

"It is very difficult to predict the gold price at present, the price fluctuates continuously every hour on the international market. Not to mention, the sharp increase in gold price since the beginning of the year, the probability of a short-term correction is difficult to avoid and the potential for a further short-term price increase at a high level is also difficult, " said Mr. Hien.

Commenting on the recent continuous increase in gold prices, economic expert Nguyen Tri Hieu said that the sharp increase in gold ring prices in recent times is due to the impact of world prices and gold bars being controlled, so the price is stable, while gold rings "suffer" from fluctuations. Besides, the demand for gold by Vietnamese people is still very large as gold is considered as an asset for storage and savings.

The recent shortage of gold bars and gold rings may be due to the fact that many people are still hoarding gold, waiting for the price to go up to sell. Meanwhile, the State Bank has not made any move to allow gold trading enterprises to import raw gold. This has been going on for more than 10 years. In addition, the police have dismantled many illegal gold rings, so the supply of raw gold on the market is very scarce.

" If the gold ring market continues to "feverish", I think it is likely that the State Bank will have to intervene ," Mr. Hieu predicted.

Mr. Nguyen Quang Huy - Faculty of Finance and Banking, Nguyen Trai University, analyzed that the domestic gold ring price increased sharply due to the impact of both international factors and the domestic investment context.

In the domestic market, the difficulty in accessing SJC gold bars has caused people to switch to buying gold rings, causing demand to increase sharply, pushing the price of gold rings up day by day. Many stores have temporarily stopped selling gold rings and are only buying to increase supply.

" One way to reduce the "heat" of gold rings is to increase the supply of SJC gold bars in the market, making it easier for people to access. This will help balance supply and demand between types of gold, reducing pressure on the price of gold rings ," Mr. Huy analyzed.

Chau Anh

Source: https://vtcnews.vn/gia-vang-nhan-cao-nhat-lich-su-co-nen-dau-tu-ar904037.html