More than 1.8 tons of gold supplied to the market through bidding

In order to stabilize the gold market, the State Bank of Vietnam (SBV) has resumed SJC gold bar auctions since April 22. This is the first time in 11 years that the regulator has resumed gold bar auctions.

In 2013, the State Bank organized 76 gold bar auctions, with a total winning volume of 1,819,900 taels out of a total of 1,932,000 taels offered.

From April 22 to now, there have been 9 SJC gold bar auctions organized by the State Bank. With 6 successful auctions, the total volume of SJC gold bars won by the winning members is 48,500 taels (485 lots), equivalent to more than 1.8 tons of gold purchased by the bidding members (including gold trading companies and credit institutions), and then supplied to the market.

W-Vang Minh Hien.jpg
SJC gold bar auction. Photo: Minh Hien

Of which, the two most successful auctions to date were on May 16 and May 23, with 12,300 and 13,400 taels of gold successfully bid, respectively. Both auctions also had the highest number of winning members, 11 members.

After a few "sluggish" sessions, from the 6th session (May 14), the State Bank changed the bidding conditions by lowering the minimum amount of gold each member can bid from 7 lots (700 taels) to 5 lots (500 taels).

With the adjustment of the "rules of the game" and the gradual stabilization of the gold market, the number of members registering to bid and winning bids has increased significantly.

Bidders are also less hesitant to participate in the gold bar auction from the State Bank as they were previously concerned about the risk of exchange rate fluctuations and the lack of customers coming to buy SJC gold bars like at SJC Company.

The State Bank of Vietnam did not disclose the specific identities of the members participating in the bidding sessions. However, according to VietNamNet's research, there were always "big guys" in the precious metal business at each bidding session, such as: SJC Company, DOJI Group, PNJ Company, Phu Quy Company, ASEAN Gold Company. In addition, there were a number of commercial banks.

SJC GOLD BARS BIDDING RESULTS THROUGH SESSIONS (UNIT: MILLION VND/TAEL)
DAY REFERENCE PRICE HIGHEST BID PRICE LOWEST BID PRICE AMOUNT OF GOLD WON IN THE BID WINNING BIDDER
April 22 81.8 0 0
April 23 80.7 81.33 81.32 3,400 2
April 25 82.3 0 0
3/5 82.9 0 0
8/5 85.3 86.05 86.05 3,400 3
14/5 87.7 87.73 87.72 8,100 8
16/5 87.5 88.92 88.89 12,300 11
5/21 88.6 89.42 89.42 7,900 9
5/23 88.7 88.73 88.72 13,400 11
Total: 48,500 taels

Strong measures for the gold market

Along with organizing a series of gold bar auctions, the State Bank has implemented a series of measures to stabilize and improve the health of the gold market during this time.

Because Saigon Jewelry Company Limited (SJC) is a 100% state-owned enterprise under the management of the Ho Chi Minh City People's Committee, on May 12 , although it was Sunday, the State Bank of Vietnam had a direct meeting with the leaders of the Ho Chi Minh City People's Committee to discuss solutions to stabilize the gold market.

At the meeting, in addition to coordination solutions between relevant parties, the leaders of the Ho Chi Minh City People's Committee directed SJC Company to immediately carry out political tasks to stabilize the gold market.

On May 17 , the State Bank issued Decision No. 324/QD-TTGSNH2 to inspect the compliance with policies and laws in gold trading activities of credit institutions and enterprises operating in gold trading.

The contents include inspection of compliance with legal regulations on gold trading activities; inspection of compliance with legal regulations on anti-money laundering; inspection of compliance with legal regulations on accounting regime, preparation and use of invoices and documents; and declaration and performance of tax obligations.

The inspection period is from January 1, 2020 to May 15, 2024. If necessary, the inspection can be conducted before or after the above period.

The inspection team includes representatives from the Government Inspectorate, the Ministry of Public Security, the Ministry of Finance, and the Ministry of Industry and Trade. The inspection period is 45 days. The inspection team will conduct the inspection in accordance with the provisions of the Inspection Law and related regulations.

On May 23, the State Bank of Vietnam announced its decision to inspect the implementation of policies and laws in gold trading activities as mentioned above.

The inspection subjects include: SJC, Doji, PNJ, Bao Tin Minh Chau, TPBank and Eximbank.

During the inspection process, the inspection team may add additional inspection subjects and inspection contents if necessary.

In the coming time, the State Bank will coordinate with relevant ministries and branches to strengthen the synchronous implementation of state management solutions for gold trading activities; strictly handle violations of the law in this activity.

The State Bank of Vietnam will continue to implement intervention measures, increase the supply of SJC gold bars, narrow the gap between domestic SJC gold prices and international gold prices with new approaches to achieve sustainable results...

In addition, the State Bank will conduct a full review of the implementation of Decree 24/2012/ND-CP, propose amendments and supplements on the basis of closely following the Party's guidelines and policies, the Government's and the Prime Minister's directions in managing the gold market, in line with the practical situation; effectively prevent the goldification of the economy; prevent fluctuations in gold prices from affecting exchange rates, inflation and stabilizing the macro-economy; enhance the State's role in managing and regulating the gold market in accordance with regulations, ensuring economic security, national financial and monetary security and social order and safety.

Gold price today May 26, 2024: Sharp drop after setting a record

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