Gold auctions have not been truly effective.
Amidst the volatile and continuously rising domestic gold prices, the difference between world and domestic gold prices has been steadily increasing. According to Lao Dong newspaper, the highest price for SJC gold bars reached 92 million VND/ounce at one point.
In order to increase supply and stabilize the market, the State Bank of Vietnam is holding an auction of SJC gold bars starting from April 22nd, 11 years after the first gold auction in 2013.
According to statistics, since April 22nd, the State Bank of Vietnam has held a total of 9 auction sessions. Of these, 6 were successful, releasing more than 48,000 taels of gold into the market.
However, according to many National Assembly deputies, this solution to increase supply has not been truly effective. The way the recent gold auctions were conducted still has many loopholes, and the minimum bid price is still too high, making it difficult for winning bidders to sell at a lower price.
Therefore, Mr. Tran Van Lam - Standing Member of the Finance and Budget Committee - suggested that the State Bank of Vietnam should reduce the minimum bid price to a level that is reasonable with domestic production costs, plus import costs and other expenses.
Alternative stabilization method
In order to continue effectively implementing the directives of the Government and the Prime Minister on addressing the significant difference between the domestic and international prices of SJC gold bars, the State Bank of Vietnam will adjust the plan for stabilizing the gold market.
Accordingly, the State Bank of Vietnam has stopped auctioning gold bars and will implement an alternative stabilization plan as soon as possible, expected to start from June 3, 2024.
Source: https://laodong.vn/kinh-doanh/chinh-thuc-dung-dau-thau-vang-mieng-1345516.ldo
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