State Bank prepares to auction gold bars after nearly 11 years of suspension

The State Bank is preparing to auction gold bars after nearly 11 years of suspension. (Photo: Minh Quyet/VNA)

On April 15, the State Bank's leadership announced that it had completed preparations for the gold bar auction to increase the supply of gold to the market. Thus, after 11 years, the State Bank returned to organizing gold bar auctions.

Providing more specific information about the above activities, the State Bank leader said that a notice will be sent out 1 day before the bidding. After the floor price is announced, credit institutions and gold trading enterprises will begin filling out bid forms. The above units have 30 minutes to decide on the volume and purchase price. One hour after the bidding closes, the State Bank will announce the results. Enterprises will have to deposit to participate in the bidding, no later than 5:00 p.m. on the day of receiving the bidding notice.

Currently, there are 26 units, including commercial banks and gold trading enterprises, establishing gold bar trading relationships with the State Bank. Of these, about 15 units are qualified to participate in the bidding. The type of gold put up for bidding is SJC gold bars.

The Deputy General Director of a bank said that the State Bank's taking gold from foreign exchange reserves to increase supply to stabilize the market without granting a license to import gold is reasonable in the current context of high exchange rates and limited foreign exchange reserves.

The first gold bar auction was held on March 28, 2013. In 2013, the State Bank held 76 gold bar auctions with a total winning volume of 1,819,900 taels out of a total of 1,932,000 taels offered. At that time, the price of SJC gold was still about 4.2 million VND/tael more expensive than world gold.

Late this morning (April 15), the domestic price of SJC gold bars surpassed the 85 million VND/tael mark when the world gold price soared to over 2,358 USD/ounce. The gap between the domestic gold buying and selling price increased to an unprecedented high of more than 3 million VND/tael, causing buyers to take great risks. With the current selling price, SJC gold bars are still nearly 14 million VND/tael higher than the world price.

The State Bank's resumption of gold bar auctions is expected to gradually reduce the difference between domestic and world gold prices./.

Source vietnamplus.vn

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