Unlock a Golden Opportunity: How Buying Gold Rings Can Bring a Surprising Windfall
Gold Rings See Sharp Price Increase Amid Global Market Trends
The price of gold rings has experienced a significant surge in recent times, closely following the development of world gold prices. Many individuals, including those with limited financial resources, have opted to purchase gold rings as a means of storing value, rather than anticipating substantial profits.
Profit of 17 Million VND/Tael
At the beginning of the year, Ms. Do Thu Hong, a resident of Thanh Xuan, Hanoi, had accumulated savings of nearly 200 million VND. Rather than depositing the funds into a bank, she decided to invest in gold. According to her calculations, purchasing gold on a yearly basis would yield a modest profit, with the potential for increased returns over time.
Ms. Hong chose to buy gold rings due to their relatively lower price point and tendency to fluctuate in accordance with global gold prices. With her savings, she was able to acquire 3 taels of gold.
Fluctuations in Gold Prices
Following Ms. Hong’s purchase, the domestic gold price experienced significant fluctuations, mirroring the trends observed in the global market. In January, the price of gold rings stood at approximately 65 million VND/tael, before surging to 69 million VND/tael by March. By March 10, the price had reached 71 million VND/tael.
In May 2024, the price of SJC gold peaked at 92 million VND/tael, with gold rings being traded at 74.6-76.3 million VND/tael (buy-sell). By May 20, the price of gold rings had approached 78 million VND/tael.
From June 2024, four state-owned commercial banks and SJC Company began selling SJC gold bars to stabilize the market. As a result, investors shifted their focus towards purchasing gold rings, leading to continuous adjustments in line with global developments.
Investors See Significant Profits
Many individuals, including Ms. Hong, have reaped substantial profits from their investments in gold rings. On September 13, the price of gold exceeded 79 million VND/tael, before setting a new record of over 80 million VND/tael (sold) just a few days later.
Calculating from the beginning of the year, the price of gold rings has increased from 61.9-62.95 million VND/tael, resulting in a profit of 17 million VND/tael for buyers. This translates to a significant gain of over 50 million VND for Ms. Hong, surpassing the returns she would have earned from traditional savings.
Global Gold Price Skyrockets
The world gold price has reached a new record high of over 2,594 USD/ounce, following the US Federal Reserve’s decision to cut interest rates by 50 basis points. Rising tensions in the Middle East have further propelled gold prices to 2,617 USD/ounce, with a new record of 2,625.79 USD/ounce set by the end of the week.
Historically, gold has never experienced such a rapid succession of all-time highs. The precious metal has risen by 27% in 2024, marking its largest gain since 2010.
Expert Insights
According to Patricia Mohr, an independent economist, the Fed’s decision to ensure a soft landing for the US economy, combined with rate cuts by other central banks, has boosted demand for gold.
Fawad Razaqzada, a market analyst at StoneX Group, notes that gold prices are in a strong technical uptrend. He attributes this to the acceleration of rate cuts by major central banks, ongoing geopolitical tensions, and central bank gold purchases.
Razaqzada forecasts that while reaching the 3,000 USD/ounce mark may be challenging, it remains a long-term goal. He advises investors to prepare for potential fluctuations in gold prices and to capitalize on opportunities to buy when prices drop to lower levels.