Gold price exceeds 140 million VND, experts warn of heat when lining up to buy at this time

On the afternoon of September 5, the price of SJC gold bars was listed by large enterprises at 132.9 million VND/tael for buying and 134.4 million VND/tael for selling, the highest price among large gold companies.

In the free market, the price of SJC gold bars has increased even more strongly, currently exceeding 140 million VND per tael. Specifically, some small gold shops in Ho Chi Minh City early this afternoon quoted the buying price of SJC gold bars at 140 million VND/tael and the selling price at 141 million VND/tael, an increase of 1.5 million VND compared to this morning and at the highest level ever.

The price of 99.99% gold rings and jewelry gold also maintained its peak at 126.7 million VND/tael for buying and 129.2 million VND/tael for selling.

Giá vàng vượt 140 triệu đồng, chuyên gia cảnh báo nóng khi xếp hàng mua vào thời điểm này- Ảnh 1. — Associate Professor, Dr. Nguyen Huu Huan

Domestic gold prices have continuously reached historical peaks, surpassing all forecasts, and many people are still lining up to buy. Meanwhile, others are expressing concerns, should they buy SJC gold bars and gold rings at this time?

Reporter of Nguoi Lao Dong Newspaper had an interview with Associate Professor, Dr. Nguyen Huu Huan, Ho Chi Minh City University of Economics (UEH) about the strong fluctuations in the gold market in recent days.

*Reporter: World gold prices have been increasing continuously, reaching very high peaks. What factors have caused the shocking increase in gold prices?

- Associate Professor, Dr. Nguyen Huu Huan: The world gold price has broken the psychological threshold of 3,500 USD/ounce and formed a new record. There are many supporting factors such as the US dollar starting to weaken; expectations that the US Federal Reserve (FED) will reduce interest rates by 0.5% in the coming time, especially at the end of September. China is also increasing its demand for gold... All of these factors cause the world gold price to increase very strongly, and domestic gold prices will often follow the world gold price.

In my opinion, after breaking the $3,500/ounce mark, there will definitely be retests. If it is passed, gold prices may continue to reach new peaks in the future.

*But the price of SJC gold bars and gold rings increases faster than the world price?

- Domestic gold prices are increasing rapidly and much higher than world prices, because the current domestic supply is still relatively scarce. It is very difficult for people to buy gold, especially SJC gold bars.

Due to the large gap between supply and demand, people are willing to buy gold at high prices. In the free market, the price of gold bars is also much higher than the listed price at companies and banks.

Giá vàng vượt 140 triệu đồng, chuyên gia cảnh báo nóng khi xếp hàng mua vào thời điểm này- Ảnh 2. — People wait in line to buy gold at SJC company in Ho Chi Minh City in recent days.

*Some experts warn of the risks of buying SJC gold bars and gold rings at this time, when the difference with the world price has exceeded 20 million VND/tael?

- That's right! In my opinion, at such a high difference, investors should not buy, should not chase (FOMO) the market, because the risk is very high.

Not to mention, such a large difference also poses policy risks. Because once the State Bank intervenes in the gold market with specific policies, domestic gold prices will certainly cool down, causing great risks for investors if they buy at the current price.

With the new regulation related to the elimination of the monopoly of SJC gold bars of the Government , which has been issued in recent days but will take effect from the beginning of October, with the regulation of eliminating the monopoly of SJC gold bars, the market can develop a sustainable market in the coming time.

However, the root cause of the problem still lies in the supply. When the monopoly of SJC gold is broken, people will wait for the next moves such as how many businesses are allowed to participate in the gold bar trading market, how much they are allowed to import and whether the amount of gold is enough to meet domestic demand or not?...

These are the problems that need to be solved. When the problem is solved and the supply meets the current large demand, the domestic gold price will gradually stabilize.