On August 3, in response to Tien Phong newspaper, a representative of Saigon Jewelry Company Limited (SJC) revealed that starting from August 5, the company will resume buying back SJC gold bars with a “single-letter” mark, as well as deformed gold bars.
For about two weeks, SJC had halted the purchase of these products. Typically, when SJC buys back “single-letter” or deformed gold bars in the market, amounting to around 1,000 taels, they would request the State Bank of Vietnam to refine them. However, as the inventory has piled up significantly, and with no clarity on when refining would be permitted, SJC decided to temporarily stop purchasing.
SJC will resume purchasing “single-letter” and deformed gold bars from August 5.
This situation has caused concern and anxiety among gold hoarders. As SJC refused to buy back the “single-letter” gold bars, gold shops were also hesitant to purchase them, and customers wanting to sell had to accept a loss of several million VND per tael compared to the State Bank’s listed price.
The “single-letter” SJC gold bars are products with a single character before the serial number, manufactured by SJC between 1992 and 1996. These gold bars are now considered old. The newer SJC gold bars feature two letters before the serial number. The inclusion of one or two letters before the serial number simply indicates the production batch, and once a batch is completed, it moves on to the next one.
According to regulations, SJC is responsible for the quality of these products. Both the State Bank of Vietnam and SJC have affirmed that the quality of gold bars with one or two letters is the same, and they are allowed to circulate normally.
This is not the first time that SJC has stopped buying back the “single-letter” gold bars, with similar instances occurring around 2012, 2015, and 2016. The amount of refined gold over the years has been significant. For instance, in 2014, SJC was permitted by the State Bank to refine 50,000 taels of “single-letter” and deformed gold bars; in 2015, the number was 65,000 taels; and in 2016, SJC requested permission to refine 60,000 taels. Currently, as the State Bank has not granted a refining quota, SJC is awaiting further instructions.
Decree 24 on gold market management stipulates that “the State has the exclusive right to produce gold bars, export gold materials, and import gold materials for gold bar production.” Therefore, since Decree 24, the State, through the State Bank, has had a monopoly on the production, import, and export of gold materials… No organization or individual is allowed to produce gold bars, including SJC.
