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The notice indicates that the total gold volume for auction in the 22/4 session is scheduled to be 16,800 taels. These are SJC gold bars manufactured by SBV. The gold will be traded in a lot auction with each transaction being 100 taels of gold.
The reference volume to calculate the deposit value is the expected bid volume of each participant. The minimum bid volume that a participant can place is 14 lots (equivalent to 1,400 taels) and a maximum of 20 lots (equivalent to 2,000 taels).
The deposit is 10% against the reference price for calculating the deposit value of VND 81.80 million/tael (this price is only to calculate the deposit).
Bid step is VND 10,000/tael. Only one minimum price level can be registered by each bidder, which must be greater than or equal to the floor price announced by SBV.
SBV notes that if SBV is unable to purchase gold from the international market due to the partner not having sufficient gold supply for SBV’s demand, SBV will decide to cancel the auction result.
Previously, at the Press Briefing on business results of the banking sector in the first quarter of 2024 held this morning, April 19, Mr. Dao Xuan Tuan (Director of Foreign Exchange Management Department – State Bank of Vietnam) shared that State Bank of Vietnam prepared thoroughly for the gold auction.
“This is gold that has been produced by the State Bank of Vietnam and is in stock. This afternoon (April 19), the State Bank of Vietnam will notify the intention to auction to 15 qualified entities to participate in the gold auction. The auction will take place on Monday of next week (April 22),” Mr. Tuan said at the press briefing on the banking sector’s first-quarter results in 2024.
The statement of the SBV leader was made in the context of world gold prices recently continuously reaching new highs, leading to an increase in the domestic market. Each tael of SJC gold bars is traded around the threshold of VND 84-85 million, an increase of nearly 15% compared to the beginning of the year.
The SJC gold auction is expected to increase gold supply to the market and cool down gold prices in the coming time. This is also the first time that the State Bank of Vietnam has auctioned gold bars again after 11 years. Previously, in 2013, the State Bank of Vietnam conducted 76 auctions, 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 these, more than 30 tons were purchased by credit institutions for gold settlement, with only nearly 40 tons of gold sold to the market.
