“An Unusual Turn” for the Market
In today’s trading session, Saigon Jewelry Company listed SJC gold bar prices at 126-128 million VND per tael for buying and selling, an increase of 300,000 VND per tael in selling price but a decrease of 700,000 VND per tael in buying price compared to the beginning of the morning.
As a result, the buying and selling spread widened to 2 million VND per tael.
Other gold bar businesses also unanimously raised the selling price of SJC gold bars to the 128 million VND per tael mark. However, the buying prices of these units decreased sharply. Specifically, Bao Tin Minh Chau Jewelry Company listed the buying price of SJC gold bars at 125.8 million VND per tael; Mi Hong gold system listed the buying price at 126.8 million VND per tael…
The move to sharply reduce the buying price of SJC gold bars by gold businesses came immediately after the government issued a new decree abolishing the state monopoly on gold bar production, gold material exports, and gold material imports for gold bar production.
Previously, businesses had significantly increased the buying price of gold bars to “attract” gold, but in the current context, many businesses are reluctant to purchase gold bars.
SJC gold bar price continues to rise sharply to a new record high of 128 million VND per tael.
Meanwhile, the prices of gold rings of various brands continued to surge to new record highs. Specifically, Bao Tin Minh Chau Jewelry Company listed the price of gold rings at 119.8 – 122.8 million VND per tael, an increase of 200,000 VND per tael compared to the beginning of the morning. Phu Quy Jewelry Group listed the price of gold rings at 119.5 – 122.5 million VND per tael…
In the Hanoi gold market, many investors took advantage of the opportunity to “take profit” on SJC gold bars and wait for the market adjustment in the coming time. Meanwhile, gold bar businesses still face a shortage of gold rings and sell them in small quantities from 1 – 5 taels/day/customer.
What’s Next for Gold Prices?
Decree 232 amends a number of articles of Decree 24/2012 on the management of gold business activities, issued by the government on August 26. It stipulates that enterprises must have a charter capital of 1,000 billion VND to be considered for a gold bar production license by the State Bank, while banks must have a charter capital of 50,000 billion VND or more.
Currently, 38 enterprises and banks have been granted licenses to trade in gold bars. However, considering the current charter capital scale, only a few leading enterprises meet the requirement of having a charter capital of 1,000 billion VND or more, such as Saigon Jewelry Company Limited (SJC), Phu Nhuan Jewelry Joint Stock Company (PNJ), and DOJI Group.
Among the banks, the state-owned group, including Vietcombank, BIDV, VietinBank, and Agribank, meet the conditions. The private banks VPBank, Techcombank, and MB also qualify.
A leader of a state-owned bank shared with Tien Phong that since the issuance of the new decree yesterday, the gold market has been stirred. “We are also waiting for the guiding circular of the State Bank and are in the process of building a production process. It will take a few more months for new gold bar brands to enter the market,” the bank leader said.
Economist Dinh Trong Thinh told Tien Phong that after the new regulation on abolishing the monopoly on gold bar production, it remains to be seen whether domestic gold prices will decrease, as it depends on many influencing factors.
However, ending the monopoly also means increasing the supply beyond a certain threshold, allowing gold suppliers to operate freely and equally. This will ultimately aim to protect the legitimate rights and interests of people in buying, storing, and selling gold, achieving stability in the gold market, and ensuring macroeconomic stability.
According to Mr. Thinh, the gold market is still “hot” as prices continue to rise, widening the gap with the world price to up to 20 million VND per tael. “The issuance of the new gold decree at this time reduces the expectation that SJC gold will continue to be scarce and that gold prices will continue to rise. It is likely that the rapid and continuous peak-breaking trend of domestic gold prices will stop. The gap between domestic and world gold prices will also gradually narrow,” said Mr. Thinh.
The expert predicted that the gap between domestic and world gold prices would gradually decrease in steps, from nearly 20 million VND per tael to 16-17 million, then to 14-15 million.
Mr. Thinh recommended that the State Bank should maintain its role in tightly managing the gold market to avoid “goldization” of the economy. In his opinion, gold should only be imported to serve the production and export of jewelry, not to meet the demand for storage. If the reform of the gold market is not linked to the strategy of attracting capital sources for economic development, the reform will lose its original meaning.
It is known that breaking the monopoly of SJC gold bars is just the first step. More important steps are being studied by the State Bank, such as establishing a National Gold Exchange, allowing gold to be traded on the Commodity Exchange, and establishing a gold exchange in the International Financial Center in Vietnam…
The Golden Opportunity: Unlocking the Exclusive World of Gold Bullion Production
With the new regulations in place, a substantial increase in minimum charter capital is required for businesses seeking licenses to produce gold bullion. To enter this industry, enterprises must now possess a minimum charter capital of VND 1,000 billion, while banks are required to have VND 50,000 billion.
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