VietNamNet Bridge – The fluctuating gold price is making many investors want to sell but buyers are limited for the same reason.

On December 24, SJC gold was selling at VND15.7mil/tael ($981.25) in HCM City, down VND50,000/tael over the previous day. Short-term investors fear prices may continue to fall and are selling as fast as they can.

According to Nguyen Huu Nam, an investor in Tan Phu district in HCM City said three days ago, the price fell to VND15.6mil/tael, then rose to VND15.75mil/tael the next day and then fell again yesterday to VND15.7mil/tael.

Feeling insecure with his gold investments, Mr Nam decided to sell. “I have to get rid of 100 taels now if I want even a modest profit, I just don’t want to sell for a loss later if the market continues to fluctuate or fall,” he said.

An official from Eximbank says there are currently more sellers than buyers. Buyers would rather wait for the fluctuations to stop before making decision.

In Hanoi, gold purchasing power also remains very low. Nguyen Huu Dang, Business Director of Bao Tin Minh Chau Gold and Silver Company, said investors feel uncertain about the global price fluctuations over the last few days. Mr Dang said he can only sell 400-500 taels per day, 50% less than most days.

Many speculators are trying to sell and wait for future opportunities, Mr Dang said. The global market will be less active because of fewer Christmas season transactions while domestic demand is low.

“It is very likely that the gold price will continue to decrease before bouncing back in January 2008,” Mr Dang said.

The monetary consultants of Phuong Nam Bank said it is very difficult to accurately predict gold prices. However, the information that Russia, a major oil producer, may reduce exports by 1.5%, Chinese jewelry producers may increase their gold reserves and the demand increases on the domestic market for the Tet shopping season may push gold prices up in early 2008.

(Source: NLD)