At the end of last week's trading session, the world gold price was listed at 2,391.77 USD/ounce, equivalent to about 73.2 million VND/tael.
Meanwhile, domestic gold prices before the auction of nearly 17,000 taels of gold also recorded no fluctuations.
Specifically, at 8:00 p.m. on April 21, the gold price at Doji was listed at VND 81.65 - 83.85 million/tael (buy - sell), no change compared to early morning.
At the same time, the gold price at SJC was listed at 82 million VND/tael and sold at 84 million VND/tael (buy - sell), also not recording any fluctuations.
Thus, with the selling price of SJC gold bars in Vietnam currently hovering at 83.85 - 84 million VND/tael, the price of SJC gold bars in Vietnam is about 10 million VND/tael higher than the world gold price.
Gold prices did not fluctuate much before the gold bar auction day. (Illustration photo: Minh Duc)
According to experts, the State Bank of Vietnam (SBV) taking gold from foreign exchange reserves to increase supply to stabilize the market without granting a license to import gold is reasonable in the current context of high exchange rates and limited foreign exchange reserves.
Gold expert Tran Duy Phuong said that the auction of 16,800 taels of gold could be enough to "cool down" the gold bar market at the current stage.
"I think that if 16,800 taels of gold is supplied to the market, it will quickly satisfy market demand. The difference between the price of SJC gold bars and the world gold price will certainly narrow," said Mr. Phuong.
According to Mr. Phuong, the price offered by businesses is certainly higher than the reference price of the State Bank of Vietnam, which is 81.8 million VND/tael. Regarding the price, Mr. Phuong predicts that it will be around 82.3 - 82.5 million VND/tael.
In more specific analysis, Mr. Phuong said that the current gold price is trading at 82.7 - 83.3 million VND/tael, so the bidding price of 82.5 million VND is completely acceptable for businesses.
"Enterprises will certainly offer a reasonable price for bidding, of course, this price must be appropriate, otherwise if it is higher than the market price, they will not buy at the bidding," said Mr. Phuong.
Sharing the same view, Mr. Huynh Trung Khanh, Vice President of the Vietnam Gold Business Association, advisor to the World Gold Council in Vietnam, assessed that gold bidding is one of the solutions to create the fastest supply for SJC gold bars.
According to Mr. Khanh, to reduce the current gold price "fever", gold bar auctions are a necessary measure. This is not the first time gold bar auctions have taken place. The State Bank used this solution in 2013, with dozens of auctions.
Mr. Khanh believes that the gold bar auction will certainly reduce the difference between domestic gold prices and world gold prices.
Dr. Dinh The Hien, Director of the Institute of Informatics and Applied Economics, also said that gold auctions are only a temporary solution to increase supply to the market.
"Of course, the winning bid price will be lower than the current market price, but I think it will not be significantly lower than the market price because the person offering the highest price will win the bid. Gold bidding is only a temporary solution to quickly supplement the gold supply to the market, not a fundamental solution to solve the unreasonable gold price difference," Mr. Hien emphasized.
The State Bank of Vietnam announced that it will auction 16,800 taels of gold bars at 10:00 a.m. on April 22 at the State Foreign Exchange Reserve Management Department, with a transaction lot being defined as 100 taels.
The gold bars auctioned are SJC gold produced by the State Bank of Vietnam (SBV).
According to the bidding regulations, gold bars will be bid at price, the deposit rate is 10%, the reference price to calculate the deposit value is 81.8 million VND/tael.
The minimum bidding volume each member is allowed to bid is 14 lots (equivalent to 1,400 taels), the maximum bidding volume is 20 lots (equivalent to 2,000 taels).
The operator's bidding price step is 10,000 VND/tael, while the bidding volume step is 1 lot (equivalent to 100 taels). Each bidding member is only allowed to register 1 minimum price equal to or higher than the floor price announced by the State Bank.
Payment time for gold purchase is before 4:00 p.m. on the day the credit institution or enterprise makes payment to the State Bank.
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