Earlier this year, when gold prices repeatedly broke records, the metal was all anyone seemed to talk about. On social media and in my circle of friends and colleagues, the common view was that prices would keep climbing.
Many people predicted that gold would soon reach VND200 million or even VND250 million per tael by the end of the year.
Caught up in that optimism, I decided to buy 10 taels of gold in early March after prices fell from VND190 million to VND185 million. I imagined at the time that prices would rebound and continue their earlier rally, and I would earn a hefty profit.
But prices continued to fall. I initially told myself that it was just a temporary pullback and that gold would rise again amid global geopolitical tensions.
However, I grew more discouraged with each passing day. Domestic gold bar prices have since dropped to a year-to-date low of VND156.5 million per tael. As a result, the value of my investment has decreased by roughly VND285 million (US$10,800).
A person holds gold bars at a store in Ho Chi Minh City. Photo by Read/Quynh Tran |
I do not want to sell because doing so would mean locking in that loss. Yet if I continue holding, I have no idea when prices might recover. As a result, the gold remains untouched in my drawer while I am filled with constant regret over my decision.
I had read plenty of warnings that no asset rises forever. But when the prospect of making money is in front of you, it is often easier to believe information that supports your hopes than warnings about potential risks.
While I technically have not lost the VND285 million and gold could eventually bounce back, there is a chance prices will not fully recover, or worse, decline further.
Should I continue to be patient and wait for a rally, or should I cut my losses and move my money into something safer?
*This opinion was submitted by a reader and translated into English. Readers’ views are personal and do not necessarily match Read’ viewpoints.
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