The State Bank of Việt Nam will resume gold bar auctions in an effort to improve supply to the market after 11 years of suspension.

 

A representative of the SBV said on Monday that preparations for gold bar auctioning are being completed. The SBV will send notice about detailed information one day before the auctioning. After the floor price is announced, credit institutions and gold businesses will fill out the bids. They will have 30 minutes to decide the bidding volume and prices. One hour after closing the bid, the SBV will announce the results.

 

Businesses will have to deposit to participate in the bidding no later than 5:00pm on the day of receiving the bidding notice.

 

Currently, there are 26 establishments, including commercial banks and gold business, have gold bar trading with the central bank. Among them, 15 are qualified to participate in the bidding.

 

The first gold bar auction was held on March 28, 2013. In 2013, 76 gold bar auctions were organised with a total winning volume of 1.819,9 million taels out of 1.932 million tael bids. At that time, SJC gold price was about VNĐ4.2 million per tael more expensive than the world gold price.

 

SCJ is listed at more than VNĐ84.3 million (US$3,345) at 9:30 am this morning while the world price is at $2,388.60, meaning a difference of $957 per tael.

 

The gold bar auction is expected to contribute to narrowing down the gap between domestic and world gold prices.

 

Increasing the supply of gold bullion is one among bold solutions raised by the SBV in response to the Prime Minister’s requirement to stabilise the domestic gold market and ensure its transparent, healthy and efficient operation.

 

The SBV also focus on ensuing raw materials for jewellery production and export, asking gold businesses to issue e-invoices for every transaction, preventing smuggling of gold, speculation and gold price manipulation as well as increasing inspection to ensure compliance.

 

At a recent meeting about gold market, the PM asked the State Bank to promptly implement solutions effectively manage the gold market, especially handling the existing huge gaps between SJC gold prices with the world prices. — VNS