State Bank struggles to stabilize bullion market

Although Saigon Jewelry Company (SJC) officially handed over exclusive rights to manage brand-name and production quota of SJC gold to the State Bank of Vietnam (SBV), it seems this is not enough to stabilize the domestic gold market as the gap between domestic and global gold price is widening from VND2.4 million. in late August to the current level of VND3 million per tael

Nguyen Hoang Minh, deputy director of the State Bank of Vietnam, Ho Chi Minh City Branch, said that SJC handed over its gold molds to SBV HCM City Branch on August 25 Accordingly, abendkleider günstig,the branch Formed two groups, of which one is in charge of sealing and keeping gold molds.
When the Central Bank gives permission to produce gold bars, the SBV Ho Chi Minh City Branch intends to handle the molds back to SJC. The second group will be responsible for supervising processing gold at SJC. After SJC completes the Central Bank's order, the SBV Ho Chi Minh City Branch will put gold into molds the safe and seal them. In case of production carrying on for several days, supervisors will seal the molds during their shift breaks and at the end of the day.

Gold production under supervision of the Central Bank is expected to stop illegal gold production. However, abendkleider günstig, the monopoly of SBV in gold production has a great effect on SJC business activities.

Le Hung Dung, chairman of SJC, said that profits gained from producing gold bars at VND50, 000. Per tael and trading gold, accounting for 80 percent of the company's profits, will be significantly reduced The company will have to restructure its development strategy, promoting production and trade of jewelry instead of mainly focusing on trading gold bars. SJC has been strongly investing in jewelry Which is expected to grow Effectively in the next 3-5 years.

It takes more effort to make jewelry, but jewelry produces higher added value than gold bars, he said.

SBV aims to stabilize the gold market in the shortest time after taking monopoly control of production of gold bars. abendkleider lang, In Particular, it gave the green light to convert SJC gold of other brand-names, and damaged gold bullion into standardized SJC.

According to Nguyen Hoang Minh, SJC converted around 1.8 tons of gold into damaged 48.000 taels of SJC standardized bullion to stabilize gold prices in Vietnam. However, the gap between domestic and global gold prices was quiet high.

Senior officials at a commercial bank said that supply of additional 48.000 taels of gold was not enough to meet the current demand, as not only have people Increased buying gold because of negative news on monetary market but commercial banks have also bought gold to pay clients who deposited gold at their banks.

Wide gap between domestic and global gold prices is likely to lure speculators to smuggle gold to produce jewelry, abendkleider günstig, as the Central Bank has closely controlled gold molds. SJC gold as a sole national brand is not enough to stabilize the bullion market.

One expert said that the Central Bank should increase gold reserves among foreign currency reserves to be always ready when markets need to be stabilized and keep domestic gold prices at the same level as global prices.