In the gold bar auction organized by the State Bank of Vietnam (SBV) this morning (April 23) at the State Bank of Foreign Exchange Management, 7 banks and 4 businesses participated. The total volume of gold bars offered for auction this time was 16,800 taels.
However, only 2 units won the bid for 34 lots, equivalent to 3,400 taels of gold. The highest winning price is 81.33 million VND/tael; the lowest winning price is 81.32 million VND/tael.
11 units participated in the gold bar auction on the morning of April 23, 2024, including: HDBank, ACB, Eximbank, Techcombank, Sacombank, MSB, VPBank, SJC, DOJI, Phu Quy, PNJ. (Illustrative image)
After the gold bar auction today (April 23), gold prices in Vietnam and the world fell sharply. Currently, SJC gold is only 80.70 million VND/tael for buying and 83 million VND/tael for selling.
At the same time, in the international market, the world spot gold price also continued to decrease. On the Kitco floor, at 3 pm today April 23 (Vietnam time), the gold price dropped to 2,306.50 USD/ounce. Converted according to the foreign exchange rate at Vietcombank today, 1 USD = 24,488 VND, the world gold price is equivalent to 68.05 million VND/tael, lower than the selling price of SJC gold by 14.95 million VND/tael.
One of the reasons why units participating in the gold bar auction are cautious and do not dare to “hold” gold in large quantities is because the world gold price has continuously plummeted, falling much more than expected.
According to Mr. Huynh Trung Khanh – Vice Chairman of the Vietnam Gold Business Association (VGTA), advisor to the World Gold Council in Vietnam, the fact that the State Bank is auctioning gold at this time and also requires a minimum purchase quantity of 1,400 taels made by units participating in the auction very thoughtful.
Mr. Khanh said that 1,400 taels of SJC gold bars at this time are equivalent to more than 113 billion VND. Spending a huge amount of money if you win the bid but not knowing if you can sell it in time because the market’s purchasing power is very slow at the moment.
“I consulted some gold businesses and 1,400 taels of gold is equivalent to the amount they sold in a week. Not to mention the risk of price, because the current world gold price is fluctuating in a very large range”, Mr. Khanh added.
