"Spring..." of gold prices, domestic gold market ""... has run out of days"

Many people thought that the domestic gold price was the "characteristic" that created the queuing scene in 2024, and like in 2020, it was queuing to buy masks, in 2021, it was queuing to get tested for Covid, in 2022, it was queuing to buy gasoline, and in 2023, it was queuing to get vehicle inspection.

It is true that people and households lined up at gold shops and commercial bank branches to buy a few taels or ounces of gold to make a profit. However, the Government and relevant agencies, especially the State Bank, closely followed the situation, directed and took drastic action with many effective solutions that quickly took effect, preventing the scene of queuing to buy and sell gold from becoming an "image" of the economy.

Up to now, it can be affirmed that the domestic gold price and the domestic gold market have gradually stabilized and if we look to the end of the year, we can also affirm that the solutions like the ones just now will still play a role in stabilizing the gold price and the gold market. The price fevers that have been witnessed recently are unlikely to repeat. These developments are also consistent with the ongoing downward trend of the world gold market.

The domestic gold market is still waiting for fundamental solutions. Illustrative photo.

This is very meaningful when Vietnam is a country where people have a habit and high demand for storing, consuming, investing, and speculating in gold. Even though it no longer plays the role of a currency or essential commodity, gold still holds an important position in the economy.

Many people borrow Nguyen Binh's poem "Spring Rain" to compare that the "spring season..." of gold prices, the domestic gold market "... has run out of days", even ended when the basic goal is that the gap between domestic gold prices and world gold prices has been significantly narrowed while the State Bank has all the necessary resources to stabilize the domestic gold market again.

But when the price of gold in the domestic market has stabilized, a natural question arises: is this a good opportunity for the authorities to amend the legal "stick" Decree 24/2012/ND-CP, which has had a significant effect on the domestic gold market over the past 10 years but has now gradually lost its "sacredness".

Many experts believe that the domestic gold market is also facing an opportunity to accelerate the transition from a material market to gold futures.

After many years, the Vietnamese gold market is still only a market in the narrow sense, meaning that only physical gold is allowed to be traded. This can be clearly seen from the provisions of Article 19 of Decree 24/2012/ND-CP, which states that gold trading in other forms without permission from the Prime Minister and licenses from state-owned commercial banks is considered a "violation of the law".

Here, in simple terms, it is a conversion from physical gold to gold certificates, which can be considered as "killing two birds with one stone". Accordingly, it is necessary to allow capital mobilization through the issuance of gold certificates. The use of gold certificates has the advantages of being safe, convenient, without fear of fake gold, under-aged gold, under-weight gold, and no processing costs for stamping gold bars.

A notable feature of gold mobilized through the issuance of certificates is that gold depositors are not allowed to withdraw gold before maturity, instead of the previous form of savings.

To ensure consistency, gold certificates will be issued by the State Bank with security measures and implemented through commercial banks. The purchase and sale of gold certificates will be allowed under strict regulations of the State Bank and are completely voluntary investment transactions. Gold certificate holders also have the right to convert the gold certificate into physical gold after the expiration date stated on the certificate.

This can also contribute to unlocking gold resources among the people without government agencies being accused of using administrative solutions to intervene in the market.

Source: https://congthuong.vn/mua-xuan-cua-gia-vang-thi-truong-vang-trong-nuoc-da-can-ngay-331582.html