Illustrative photo
This is SJC gold bullion produced by the SBV. The gold will be auctioned in lots of 100 taels each.
The reference mass for calculating the deposit value is the expected bid volume of each member. The minimum bid 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).
The deposit rate is 10% with the reference price for calculating the deposit value VND 81.80 million/tael (This price is only for calculating the deposit).
The bid step is VND 10,000/tael. Each bidding member may only register for 01 minimum price equal to or higher than the floor price announced by the SBV.
According to the regulations, the subjects eligible to participate in the SBV’s gold auction are credit institutions and enterprises licensed to buy and sell gold bullion.
Earlier, at the Press Conference on the Results of the Banking Operations in Q1/2024 held this morning, April 19, Mr. Dao Xuan Tuan (Director of the Foreign Exchange Management Department – State Bank of Vietnam) said 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 in stock. This afternoon (April 19), the State Bank of Vietnam will notify the bidding policy to 15 qualified entities to participate in the gold bidding. The bidding activities will take place on Monday next week (April 22)”, Mr. Tuan said at the press conference on the results of banking operations in Q1/2024.
The auction of SJC gold bullion has been re-launched in the context of domestic gold prices rising continuously in recent months, creating a high gap between domestic gold prices and world gold prices.
The SBV’s intervention is expected to help increase gold supply in the market and cool down gold prices in the coming time. This is also the first time the State Bank has auctioned gold bullion again after 11 years.
Previously, from March 28, 2013 – December 31, 2013, the State Bank of Vietnam conducted 76 auctions, offering a total of 1,932,000 taels of gold and successfully selling 1,819,000 taels, corresponding to 69.9 tons of gold. Of which, 30 tons were purchased by commercial banks to settle gold positions, while nearly 40 tons were sold to the market.
