People 'rush' to sell gold for fear of loss

On the morning of November 8, the price of SJC gold bars and 99.99 plain gold rings both increased by nearly VND2 million per tael after plunging by VND6 million yesterday. World gold also regained the threshold of USD2,700/ounce.

Specifically, according to a survey at 2 p.m. on November 8, Saigon Jewelry Company listed the buying price of gold bars at VND82 million/tael and the selling price at VND86 million/tael, an increase of VND1 million in both directions compared to yesterday. 24K plain rings also increased from VND1 to VND2 million, depending on the brand. Currently, the price of plain gold rings is about VND5 million/tael lower than the peak set at the end of October.

At Phu Nhuan Jewelry Company (PNJ), plain rings are listed at 83.4 - 85.2 million. DOJI increased the buying price by 1.8 million VND and the selling price by 800,000 VND, to 82.8 - 84.6 million VND.

Faced with the plummeting gold price, many large gold shops in Hanoi were packed with customers selling gold on the morning of November 8 as people feared the price would drop further.

The number of people queuing at the gold shop on Cau Giay Street is increasing. Photo by Phuong Cuc

At Bao Tin Minh Chau Gold and Silver Company on Cau Giay Street, many people came to line up and get numbers early to wait for transactions. According to records, most of the customers who came early were in need of selling.

Similarly, at the gold shops on Tran Nhan Tong street (Hai Ba Trung district), since yesterday there has been a queue to trade gold. After a crowded day, on the morning of November 8, right from the opening of the gold shop, many people continued to come early to sell gold.

Ms. Nguyen Ngoc Thao (Dong Da district, Hanoi) said: " I lined up since yesterday afternoon but because there were too many people waiting, I came back this morning. When I got to the store, I found out that the price of gold had increased but I had to sell it because I didn't know if it would decrease again. If I sold it today, I would still make a profit of more than 6 million compared to when I bought it ."

People lining up to sell gold at a store on Tran Nhan Tong Street (Hai Ba Trung District, Hanoi). Photo by Phuong Cuc

In the same situation, Mr. Quang Minh (Cau Giay, Hanoi) said: " If I sell gold today, I will still make a profit of more than 4 million VND per tael. With the complicated gold situation like now, if I don't sell, I'm worried that gold will decrease, then there will be no profit at all ."

According to an employee of Bao Tin Minh Chau gold shop, the number of people buying and selling gold this morning has stabilized, even slightly more than yesterday. Currently, the shop is still conducting gold buying and selling transactions as usual.

According to the reporter of Cong Thuong Newspaper, the number of customers coming to sell gold is quite large, selling from a few taels or more. Many people said they bought when the price of gold rings peaked, saw the price drop so much so they decided to sell at a loss. In addition, the need for cash at the end of the year also made customers decide to sell for fear of losing more.

Experts advise caution

Faced with the situation of gold prices "fluctuating" as in the past few days, in an interview with Cong Thuong Newspaper, economic expert Associate Professor Dr. Dinh Trong Thinh said that after Mr. Trump was elected President of the United States, the price of gold will decrease, however, this decrease cannot be as deep as after the previous presidential elections. This is due to the increased demand for gold due to the central banks of countries buying and people consuming it for storage and jewelry. In addition, the US Federal Reserve reduced interest rates, which means the USD decreased. This is contrary to the prediction that when Mr. Trump was elected, the USD increased in value.

People jostle to sell gold at a gold shop in Ha Dong district. Photo: Luong Tieu

" In the next 1-2 months, gold prices will continue to fall, but not to $2,400. In the medium term, gold prices will tend to stabilize and increase. This may be due to the impact of the US economy and the political conflict situation in the world. In the long term, gold prices will increase from the lowest level in the near future ," the expert said.

Faced with the situation of people "rushing" to sell gold, Mr. Dinh Trong Thinh recommends that people should consider carefully before making gold buying and selling transactions.

" The price of gold will fluctuate in the coming time, and in the immediate future it will drop sharply. People selling gold to make a profit, gold trading businesses and banks not buying will make the price of gold even lower. However, in reality, gold will not drop as low as people expect. Therefore, people must be very careful to avoid losing money, " said Mr. Thinh.

Agreeing with the above viewpoint, Associate Professor Dr. Nguyen Huu Huan, Senior Lecturer, Ho Chi Minh City University of Economics, said that this is also the time to take profit if gold is profitable. Buyers can also wait for gold prices to decrease during correction sessions to buy at lower prices.

"In the case of buying gold as "savings", in my opinion, it is not necessary to sell. The price of gold decreasing by a few million VND per tael is normal at the present time because this precious metal has increased by about 40% since the beginning of the year and the probability of adjustment in the near future will be relatively high, " said Associate Professor, Dr. Nguyen Huu Huan.