Investors uncertain about investment channels in 2016
The price of gold is now at a 6-year low, and is expected to continue to decrease.
The gold price fell sharply at the end of 2015. SJC bought SJC bullion gold at VND32.42 million per tael on December 30 and sold it at VND32.78 million.
The deputy director of a gold company said the selling power had increased in recent days as investors fear the gold price would decrease further after the US FED raised the prime interest rate.
Some analysts have even predicted that the gold price would drop to below US$1,000 per ounce.
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According to Tran Thanh Hai, chair of VGB, gold is no longer a profitable investment channel.
SJC gold price dropped by 6.6% in 2015, while the world’s price dropped by US$132 per ounce, or 8.82%.
It is not the right time in the first quarter of 2016 to keep gold,” Hai said.
Stock market
The VN Index dropped by 41 points within five days in 2015. The shock was caused by the unexpected move of the Chinese government to devalue the Chinese renminbi dramatically.
Investors then bargained stocks away, while the electronic boards at trading floors were lit red for the entire week. Analysts said several big investors lost trillions of dong just because of the shock.
They believe the investment channel will be riskier in 2016, though the P/E (price on earning) is lower than other regional markets, the valuation of domestic enterprises is ‘reasonable’ and the economy is stable. This helps the stock market to be more attractive in investors’ eyes.
However, according to Dinh The Hien, a renowned expert, if the VN Index does not see sharp increases in 2016, there would still be small waves strong enough for experienced investors to make profits.
Real estate investors
Le Hoang Chau, chair of the Ho Chi Minh City Real Estate Association, said that signs of the real estate market’s recovery appeared in 2013 and the recovery would continue in 2016.
“I discovered that secondary investors have returned to the market since late 2014, especially those who invest in the market segment with prices of over VND20 million per square meter,” Chau said.
However, an investor noted that real estate had become expensive after the prices increased gradually over the last two years.
“It’s a taboo to make investment at the time when the prices have become too high,” he said.
