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According to the announcement, the total volume of gold bars expected to be auctioned in the April 23 session is 16,800 taels, equal to the volume offered in the April 22 session (which was canceled). This is SJC gold bullion produced by the SBV. The gold will be auctioned in the form of lot auctions with each trading lot being 100 taels of gold.
The minimum auction volume allowed for a member to bid is 14 lots (equivalent to 1,400 taels) and a maximum of 20 lots (equivalent to 2,000 taels).
The reference price issued by the SBV to calculate the deposit price is VND 80.7 million/tael, down VND 1.1 million compared to the VND 81.8 million/tael level issued for the April 22 session.
The bidding price step is VND 10,000/tael. Each participating member is only allowed to register 01 minimum price equal to or higher than the floor price announced by the SBV.
The SBV also notes that in case the SBV cannot buy gold from the international market because the partner does not have enough gold supply according to the SBV’s demand, the SBV will decide to cancel the auction results.
Previously, due to the insufficient number of members registering to bid and transferring the deposit as prescribed, the SBV canceled the auction session of 16,800 taels of gold bars scheduled to be held on the morning of April 22.
The auction of SJC gold bullion was restarted in the context of domestic gold prices continuously rising in recent months, creating a high gap between domestic gold prices and world gold prices.
The intervention by the SBV 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 SBV has organized an auction of gold bars again after 11 years.
Previously, from March 28, 2013 to December 31, 2013, the State Bank conducted 76 auction sessions, offering a total of 1,932,000 taels of gold to the market and successfully sold 1,819,000 taels, equivalent to 69.9 tons of gold. Of which, 30 tons were purchased by commercial banks to settle the gold status, the remaining nearly 40 tons were sold to the market.
