Not only gold traders had to pay heavy prices for their unreasonable investment decisions, but many other people have also suffered from â€śthe dance of the gold pricesâ€ť.LookAtVietnam – Not only gold traders had to pay heavy prices for their unreasonable investment decisions, which caused constant price fluctuation in the recent days, but many other people have also suffered from â€śthe dance of the gold pricesâ€ť.
A lot of gold investors have reaped â€śbitter fruitsâ€ť since the gold prices skyrocketed in recent days. The investors borrowed gold from banks and then sold the gold for dong. They hoped that the gold price would decrease, so that when they have to buy gold again to pay their bank debts, they would earn fat profit. However, the gold price did not decrease as they expected.
LMT in Phu Nhuan District in HCM City was one of the investors. On September 27, T borrowed 1000 taels from a bank in HCM City and then sold the gold immediately to the bank at 30.5 million dong per tael. Right after the sale, the gold price jumped to 30.7 and then 30.8 million dong a tael.
As the gold price increased so unexpectedly, people did not want to sell gold at that time, and T could not buy the gold from the bank to pay bank debt. T was like a cat on hot bricks.
However, lucky enough for T, the gold price fell again on September 27 to 30.72 million dong, and T could buy gold to pay back to the bank. â€śI incurred the loss of 200 million dong from the deal,â€ť T complained.
At 9 am on October 6, the world price increased by 450,000 dong per tael, while the domestic price increased by 600,000 dong per tael to 32.4 million dong per tael. At that moment, PVM in District 5 in HCM City believed that the gold price would go down. Therefore, he borrowed 300 taels from a bank and then sold the gold for dong.
However, the gold price did not decrease as expected, and instead it soared sharply. By 12 pm of the same day, the price had increased by 600,000 dong to 33 million dong per tael. â€śAs the result, I had to borrow money on the black market at the exorbitant high interest rate of four percent per day to pay my debts,â€ť he said.
In fact, this way of doing business had once brought fat profit to investors. For example, gold was traded at 33 million dong per tael on October 14. If an investor borrowed 10 taels from a bank, they would be able to sell the gold for 330 million dong. If the gold price later decreased by 100,000 dong per tael, they would only have to spend 329 million dong to buy gold to pay the debts and they could pocket the profit of one million dong.
The tragedy for people who buy houses with gold
House buyers have complained that they have lost a lot of money because they bought houses with gold instead of cash.
NVQ, a Viet Kieu in the US, related that he intended to buy a house at 500 taels of gold and he left a deposit of 50 taels. At that time, the gold price was 30 million dong per tael, and he planned to buy more gold to pay the other 450 taels when the gold price decreased. However, the gold price soared by two million dong per tael just within two weeks, forcing him to pay 200 million dong more for the house.
Analysts say in many cases, that wise buyers always pay the deposit worth 10 percent of the values of the houses, and then the sellers and buyers convert the values of the houses into Vietnam dong at the time of depositing. If so, buyers will not have to pay more money in case the gold price increases.
However, the gold price increases are still the â€śtrapâ€ť for many inexperienced buyers.