Gold bar prices are high due to reduced supply, businesses are afraid of risks

At the National Assembly’s questioning session on the afternoon of June 8 on the banking sector, delegate Nguyen Phuong Thuy (Hanoi) asked about the unusual development of the domestic gold bullion trading market.

According to Deputy Chairman of the Law Committee of the National Assembly, the gold market has many unusual and unreasonable points from the beginning of 2022 until now, especially the disparity is too high. gold price in Vietnam with the price of gold on the world market, sometimes up to 20 million dong/tael as well as the difference between the price of gold bars and gold bars. SJC and SJC gold jewelry with the same content or gold bars of other brands.

This has caused anxiety and insecurity for people, reduced confidence in the value of the Vietnamese currency, and increased inflation.

Delegate Nguyen Phuong Thuy (Hanoi)

The Hanoi delegation asked the Governor to explain the responsibility of the State Bank for the above situation.

“The State Bank has conducted an inspection to check the factors that cause the gold price to fluctuate abnormally or not. Is there a handshake and manipulation of the SJC gold bar price on the market today? Until when? The State Bank has proposed to the Government to amend Decree 24 to deal with the inadequacies of the gold business in the past time?” – delegate Nguyen Phuong Thuy questioned.

National Assembly Chairman Vuong Dinh Hue assessed this as a question that was both difficult and good.

Responding to the issue of the gold bar market, State Bank Governor Nguyen Thi Hong said that gold price movements in the international market are complicated and unpredictable, affected by many factors. There are times when the price of gold goes up very high and sometimes it drops very low. In Vietnam, the gold price has the same trend as the world, but the upward adjustment speed is faster, the downward adjustment speed is slower.

“The price of gold of brands other than SJC has an international price difference of about 2 million VND/tael. Particularly, the price of SJC gold increased to a large extent, a difference of 16-17 million VND/tael” – Ms. Nguyen Thi Hong pointed out the difference.

Regarding the cause of this situation, the Governor of the State Bank analyzed, because the domestic supply of gold bars was reduced, the fluctuations in the world gold price made the domestic gold bar enterprises themselves afraid of risks, therefore. List price is quite high.

SJC is the most popular gold brand, so it is listed at high price, buy high and sell high while other gold brands buy low and sell low.

Governor of the State Bank Nguyen Thi Hong

The Governor of the State Bank said that the State Bank will be ready to regulate if necessary. However, in recent times, people do not have the need to buy gold bars too much. Therefore, the bank has not intervened, but in case of necessity, it will import gold.

Participating in the debate on the issue of gold prices, delegate Trinh Xuan An (Dong Nai) said that perhaps Vietnam is the only country that goes against the world in terms of gold price.

“When the world gold price decreases, we increase again, there are times when the gap is close to 20 million. This is unacceptable. Will it benefit any organizations or businesses after this?” – The member in charge of the National Defense and Security Committee asked questions.

Delegate Trinh Xuan An (Dong Nai)

Continuing to argue, delegate Nguyen Phuong Thuy (Hanoi) doubts that the monopoly on a national gold brand, SJC, is one of the reasons for the high price of SJC gold bars. Currently?

The Deputy Chairman of the National Assembly’s Law Committee asked the Governor of the State Bank to give more specific answers on this issue.

Regarding the issue of gold price, Governor of the State Bank Nguyen Thi Hong will continue to answer delegates at the beginning of the questioning session on the morning of June 9.

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