Gold price on June 2 plummeted, customers lost nearly 11.5 million VND/tael because they "chase the peak"

On May 29, the State Bank announced that it would sell gold directly to four state-owned commercial banks (Vietcombank, BIDV, Agribank and Vietinbank) so that these banks could sell gold directly to the people.

This is a plan to stabilize the gold market, replacing the organization of SJC gold bar auctions taking place from April 22.

From over 90 million VND/tael (May 29), the domestic SJC gold price almost immediately dropped sharply.

Early morning of May 30, SJC 9999 gold price decreased by 3.8 million VND/tael for buying and 2.3 million VND/tael for selling compared to the previous day's closing price, to 88 million VND/tael (selling).

On May 31, SJC gold bars continued to fall sharply in both directions, down to 87 million VND/tael (sold).

SJC gold prices continued to decline as Vietcombank, BIDV, Agribank and Vietinbank announced direct gold selling points for people from June 3. All four banks are busy preparing for this important task.

On June 1, the price of SJC gold continued to be adjusted down sharply in both buying and selling directions. As of the end of the afternoon of June 1, the price of 9999 gold bars at SJC was VND81 million/tael (buy) and VND83.5 million/tael (sell). Doji listed it at VND80.95 million/tael (buy) and VND83 million/tael (sell).

Thus, after only 2 days, the price of SJC gold has decreased by nearly 7 million VND/tael.

Compared to the historical peak of 92.4 million VND/tael (May 10), customers have lost nearly 9 million VND/tael. If they sell at this time, gold buyers will lose nearly 11.5 million VND/tael.

In fact, the gold price peak can still happen due to the crowd buying mentality of some investors. When the gold price is high, at many gold trading points, there is a situation where people line up to buy gold even though they have to wait a long time and are limited in the number of purchases.

With the strong move of the authorities, many customers are worried that the price of SJC gold will continue to fall sharply. Some investors will suffer losses if they sell immediately or have to wait a long time for the price of gold to increase again.

For example, on March 8, 2022, the domestic gold price increased sharply, reaching a peak of 74 million VND/tael. Some people bought gold and immediately lost money if they sold it later. Throughout 2022, the SJC gold price remained stable around the 67 million VND/tael mark. It was not until November 29, 2023 that the domestic SJC gold price reached this mark.

However, gold investment is still popular among people. Compared to other investment channels such as savings, stocks, etc., gold investment still has an effective profit level. Since the beginning of the year, the price of SJC gold has increased by 9.5 million VND/tael.

Recently, the State Bank has organized 9 auctions, supplying the market with 48,500 taels of SJC gold, equivalent to more than 1.8 tons of gold.

At the same time, the management agency announced the decision to inspect the implementation of policies and laws in gold trading activities. The subjects of the inspection include: Saigon Jewelry Company Limited (SJC), Doji Jewelry Group Corporation, Phu Nhuan Jewelry Company Limited, Bao Tin Minh Chau Company Limited, Tien Phong Commercial Joint Stock Bank and Vietnam Export Import Commercial Joint Stock Bank.

Along with the inspection and affirmation of strict handling of violations of the law (if any), the State Bank's leaders also sent out a message: With abundant resources and existing tools, the State Bank has the capacity and determination to stabilize the market. The gap between domestic and world gold prices will quickly and sustainably narrow.

The representative of the management agency also recommended that, given the complicated developments of domestic and international gold prices, people need to be very careful when participating in gold transactions to minimize risks for themselves.