The central bank does not buy gold from individuals, while SJC can sell and buy gold. — VNA/VNS
HANOI: Residents in large cities have been lining up to buy Saigon Jewellery Co Ltd (SJC) gold bars at counters set up by commercial banks since yesterday, with many saying they have not been able to finalise any purchases.
Meanwhile, bank representatives claimed there is no shortage of the precious metal and that domestic gold demand will be met.
As of Tuesday afternoon, the price of SJC gold bars sold directly from the State Bank of Vietnam (SBV) to four large commercial banks – Agribank, BIDV, VietinBank and Vietcombank – as well as SJC, was reported at 77.98 million dong per tael, a traditional unit of measure equivalent to 37.5g. The price was one million dong lower than the previous day.
The banks listed the selling price at 78.98 million dong per tael, one million dong higher than the SBV’s price.
The central bank does not buy gold from individuals, while SJC can sell and buy gold.
The price of the precious metal dropped significantly from its peak of 92.4 million dong per tael, a new historic height for gold in Vietnam reached on May 10.
Economists have also voiced their concerns over the recent gold rush with most agreeing that prices can still go down further as the SBV has just started rolling out measures to close the price gap between the domestic and international gold markets.
The price gap has largely been seen as reasonable by experts and industry insiders, showing the effectiveness of the central bank’s intervention.
At a selling price of 77.98 million dong per tael, the gap has narrowed to just six million dong per tael.
“Compared to the previous gap of nearly 20 million per tael, the price of gold has stabilised and is at a reasonable level,” said Truong Vi Tuan, a gold expert from giavang.net.
Nguyen Thi Phuong, deputy director-general of Agribank, said the bank had underestimated the number of people showing up to buy gold on the first day, which resulted in some customers having to go home without any.
She, however, said locals need not rush to buy gold as the banks will continue to supply the market until the targeted price gap is achieved.
Phung Nguyen Hai Yen, deputy director-general of Vietcombank, said the central bank has set maximum and minimum quantities for each bank for each trading session. Vietcombank will sell to customers based on demand and the quantity available to the bank.
“If the bank has run out of gold, the order could still be processed and finalised once Vietcombank receives additional gold from the central bank,” she said.
Gold buyers must exercise caution and try to pick the right time to buy or sell to avoid incurring losses and minimising risks, as the prices of the precious metal could go lower in the short term. — Viet Nam News/ANN
