A Vietnamese woman, dissatisfied with low bank interest rates, followed a friend's advice to withdraw all her life savings and went all in to chase surging gold prices. Unexpectedly, the gold price crashed within just three weeks, causing her to lose about 100 million VND (approximately 15,000 MYR). To make matters worse, recent silent increases in bank deposit rates left her in a tragic situation of 'losing on both fronts.'
According to reports from 'Vietnam Express,' Vietnamese man Dao Ngoc shared by submission the painful lesson of his mother's disastrous gold investment. Earlier this March, his mother thought bank savings rates were too low to be worthwhile, and, coupled with soaring global safe-haven demand due to Middle East geopolitical conflicts, gold prices surged to more than 190 million VND (about 28,700 MYR) per tael. Urged on by friends, his mother was convinced that gold prices would continue to rise, so she withdrew all the money from her account to buy 5 taels of gold.
Dao Ngoc admitted that he himself was somewhat carried away by the gold investing craze at the time, so he didn’t stop his mother. However, this decision turned out to be the beginning of a nightmare; in just three weeks, gold prices plummeted, dropping below 170 million VND per tael.
This dramatic plunge resulted in a loss of about 20 million VND for each tael of gold, making for a total on-paper loss of up to 100 million VND.
Dao Ngoc helplessly noted that one evening, he saw his mother sitting blankly in the living room, repeatedly counting her losses and sighing deeply, which was heartbreaking to him. To make matters worse, bank interest rates recently started to go up, meaning his mother not only suffered a huge capital loss, but also missed out on the guaranteed interest income she would have made, ending up empty-handed on both accounts. (News Source: SET News)