2/11 units won 3,400 taels of gold in the auction on April 23

The first gold bullion auction after an 11-year hiatus was held by the State Bank of Vietnam on the morning of April 23, 2024, at the State Foreign Exchange Management Department.

Two out of eleven bidders won the 3,400 taels of gold in the auction held on April 23rd.

Two out of eleven bidders won the 3,400 taels of gold in the auction held on April 23. (Photo: Vietnam+)

On April 23, the State Bank of Vietnam held an auction of 16,800 taels of gold with a reference price of 80.7 million VND per tael.

This bidding session attracted the participation of 11 businesses and credit institutions.

At the end of the session, two entities won the bid with a total winning volume of 34 lots (3,400 taels of gold). These are credit institutions and businesses that have established gold trading relationships with the State Bank of Vietnam.

The highest winning bid price was 81.33 million VND/ounce, and the lowest winning bid price was 81.32 million VND/ounce.

According to the State Bank of Vietnam, the total volume of gold bars auctioned today is 16,800 taels. The volume of gold bars in each transaction lot is 100 taels.

The gold bars being sold are SJC gold bars, produced by the State Bank of Vietnam.

The deposit rate is 10%. The reference deposit price is VND 80.70 million/ounce, which is VND 1.1 million lower than the State Bank's initial plan. The minimum bidding volume per bidder is 14 lots, equivalent to 1,400 ounces. The maximum bidding volume is 20 lots, equivalent to 2,000 ounces. The bid price increment is VND 10,000/ounce. The bid volume increment is 1 lot (100 ounces).

Each bidder may only register one minimum price equal to or higher than the floor price announced by the State Bank of Vietnam.

The State Bank of Vietnam also stated that if it is unable to purchase gold from the international market due to insufficient supply from its partners, it will decide to cancel the bidding results.

According to regulations, the winning bidders must transfer the payment to the State Bank before 4 PM on the same day.

According to market observations, at the opening of the trading session on April 23rd, the price of SJC gold bars was listed by major businesses at 80.3-82.8 million VND/ounce (buy-sell), a decrease of 700,000 VND in both directions compared to the closing price of the previous session. The downward trend in market gold prices is believed to be due to the information effect from the upcoming supply of gold bars to the market.

According to our findings, the two winning bidders today are SJC Company and Asia Commercial Bank (ACB ). SJC Company won the bid for 2,000 taels at a price of 81.33 million VND/tael, while ACB won the bid for 1,500 taels at a price of 81.32 million VND/tael.

Mr. Dinh Nho Bang, Vice Chairman of the Vietnam Gold Business Association, commented that the results of this morning's gold bullion auction show that the participating bidders were very cautious.

The fact that only 2 businesses won the bid for a total of 3,400 taels of gold out of 11 participating entities speaks volumes. In reality, domestic market demand is driven more by psychological factors than anything else.

"Besides the price factor, the requirement to purchase a minimum of 1,400 SJC gold ounces to participate in the bidding process is causing businesses to consider carefully. Because world gold prices have been falling for the past two days, buying at this time is not really advantageous," Mr. Bang commented.

Some experts also believe that with the current continuous decline in gold prices, very few gold companies would have the courage to hold 1,400 taels at once.

According to Vietnam+

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