Perhaps Vietnam is the only country that “goes against” the world in terms of gold prices

On the afternoon of June 8, at a question-and-answer session with Governor of the State Bank of Vietnam Nguyen Thi Hong, NE Nguyen Phuong Thuy (Hanoi) mentioned unusual developments in the domestic gold bullion trading market. Especially since the beginning of 2022, it has shown that this market has many unstable and unreasonable points, the difference is too high in the gold price in Vietnam with the gold price in the world market.

NE cited evidence that sometimes up to over 20 million dong per tael, the difference is too harsh between the price of SJC gold bars and the price of SJC gold jewelry with the same content or with the price of gold bars of other brands, causing anxiety. anxiety and insecurity for people, reducing confidence in the value of the Vietnamese currency and increasing inflation.

She asked the Governor to tell us the responsibility of the State Bank for the above situation? Has the bank inspected and checked price formation factors when the price of gold bars fluctuates abnormally? Is there a handshake and manipulation on the price of SJC gold bars on the market today?

When will the State Bank of Vietnam propose to the Government to amend Decree 24 in 2012 so that it can fundamentally handle the inadequacies of gold business during the past time?

Responding to this issue, Governor of the State Bank Nguyen Thi Hong said that gold prices in the international market are very complicated and unpredictable. The reason is because the price of gold is affected by many factors, such as the US dollar index or political tensions between Ukraine and Russia, a variety of other trade and political events that will affect the price of gold and be unpredictable. .

According to Ms. Hong, there are times when the price of gold rises to $2,000/ounce, but there are times when the price of gold drops to about $1,700 or $1,800/ounce. This shows that the price of gold fluctuates very unpredictable.

Domestically, the gold price has the same trend as the world’s gold price, but the domestic gold price’s upward adjustment speed is faster and the downward gold price adjustment speed is slower than the world’s gold price.

The Governor of the State Bank informed that, through the assessment and analysis of the causes, it was found that the gold price of brands other than SJC, that is, raw gold, basically, the difference in the domestic gold price compared to the international one. about 2 million dong a tael. But the price of SJC gold alone increased at a large rate, about 16-17 million per tael.

Ms. Hong mentioned a number of reasons. Firstly, implementing the policy of anti-goldenization in the economy, since 2012 implementing Decree No. 24 and especially from 2014 onwards, the State Bank has not imported gold to produce gold bars, so the supply Domestic gold bars have decreased, because some of that gold may be converted to gold jewelry production.

Second, with the fluctuations of the world gold price, the gold bar businesses themselves, who list prices, are also very concerned about risks, so they often list very high prices. With SJC being a gold brand that people love the most, they list a high price.

In fact, the listed gold price, the buying price of gold and the selling price of gold of organizations are basically different by about 1 million or 1.5 million dong per tael. For SJC, buy high, sell high, and other gold brands buy low and sell low.

With the role of state management on the gold issue, Ms. Hong said, the agency has prepared plans to intervene if necessary.

However, in recent times, through the synthesis of data from gold trading organizations, people do not have much demand to buy gold bars. Because there is data that is a net sale, that is, when the price is higher, many people sell it to get Vietnam dong.

“We have not organized the importation to intervene in gold, but we have developed a plan that will also be implemented in case of necessity.

Because when importing gold, we also use the country’s state foreign exchange reserves to import gold to intervene. But with the current market demand, the State Bank has not yet implemented this solution,” said Ms. Hong.

Does the gold price “go against” the world benefit organizations or businesses?

Raising a sea of ​​debate, related to the price of gold, NE Trinh Xuan An (Dong Nai) said that perhaps Vietnam is the only country that “goes against” the world. When the world gold price fell, the Vietnamese gold price increased again, at times leading to a gap of nearly 20 million. He said that the above problem is very difficult to accept.

NE also raised the point that, behind the gold price “going against” the world as above, does it benefit any organizations or businesses? Therefore, it is necessary to analyze and evaluate this issue carefully.

Joining the debate, NE Nguyen Phuong Thuy highly appreciated the gold market management and gold business activities in recent years.

However, Ms. Thuy also questioned, is the monopoly on a national gold brand, SJC, one of the reasons for the current high price of SJC gold bars?

NE pointed out that the same gold bar but not the SJC brand is the difference between the price of SJC and the price of 15 million VND/tael. Clearly, in terms of price or in terms of world prices, such a difference is too large, NE asked the Governor of the State Bank to have a more specific answer on this content?

These issues will be continued to answer by Governor of the State Bank of Vietnam Nguyen Thi Hong at the questioning session tomorrow morning (June 9).

Huong Quynh

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