It was announced that the total amount of gold bullion expected to be auctioned in the April 22 session was 16,800 taels, which is SJC gold bullion manufactured by the State Bank of Vietnam (SBV). The gold will be auctioned in the form of lot auctions, with each transaction lot consisting of 100 taels of gold.
The minimum auction volume that a member is allowed to bid is 14 lots (equivalent to 1,400 taels) and the maximum is 20 lots (equivalent to 2,000 taels).
According to regulations, entities that are eligible to participate in the SBV’s gold auction are credit institutions and enterprises that have been granted a license to buy and sell gold bullion.
Previously, Government Newspaper reported information from the SBV, indicating that there are currently 26 units, including commercial banks and gold trading enterprises, that have established gold bullion trading relationships with the SBV. Of these, approximately 15 units are currently eligible to participate in the auction.
At the Press Conference on the Results of Banking Operations in the First Quarter of 2024 held on the morning of April 19, Mr. Dao Xuan Tuan (Director of the Foreign Exchange Management Department – State Bank of Vietnam) stated that the State Bank of Vietnam has made thorough preparations for the gold bullion auction.
“This is gold that has been produced by the State Bank of Vietnam and is currently in stock. This afternoon (April 19), the State Bank of Vietnam will announce the auction plan to 15 qualified units to participate in the gold auction. The auction will be conducted on Monday next week (April 22),” said Mr. Tuan at the press conference on the results of banking operations in the first quarter of 2024.
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The SJC gold bullion auction was restarted in the context of domestic gold prices continuously rising in recent months, creating a significant gap between domestic and international gold prices.
The SBV’s intervention is expected to increase gold supply in the market and reduce gold prices in the near future. This is also the first time the State Bank of Vietnam has auctioned gold bullion again after 11 years.
Previously, from March 28, 2013 to December 31, 2023, the State Bank of Vietnam conducted 76 auction sessions, offering a total of 1,932,000 taels of gold to the market and successfully selling 1,819,000 taels, equivalent to 69.9 tons of gold. Of this, 30 tons were purchased by commercial banks to settle their gold positions, with the remaining 40 tons sold to the market.
