Gold price 'takes advantage' to increase before hour G

SJC gold bar price is 23% higher than international

SJC gold bar price on March 28.3 increased rapidly to exceed 81 million VND/tael. This comes as a surprise to investors in the market because from now until the end of March, the Prime Minister will request the State Bank (SBV) to summarize Decree 3/24 (Decree 2012) on management. Gold market is only a few days. According to proposed amendments such as removing the monopoly on SJC gold bars, allowing the import of raw gold... the gold price will decrease. Therefore, the move of increasing millions of VND/tael in yesterday's session caused members to continuously ask each other on some gold forums what news the market had about Decree 24 that caused the price to skyrocket.

Specifically, the price of SJC gold bars increased by 1,2 million VND/tael compared to the previous 2 quiet days. Saigon Jewelry Company - SJC bought 79,1 million VND, sold 81,1 million VND/tael. Doji Group bought 79 million VND and sold 81 million VND/tael. Bao Tin Minh Chau Company bought 79 million VND, sold 80,95 million VND/tael... Meanwhile, precious metals in the international market only increased slightly to 2.195 USD/ounce. The price of SJC gold bars is 15,1 million VND/tael higher than international prices, equivalent to 23%, instead of the previous 13 - 14 million VND/tael.

According to Mr. Nguyen Ngoc Trong, Director of New Partner Gold Company, after many weeks, the market has not had official information on the summary of Decree 24 and how the trend will change; So when world gold prices tend to increase, domestic prices are pushed up. However, Mr. Trong believes that it will be difficult for the domestic gold price to increase to a more expensive level of 17-18 million VND/tael before there is clearer information about Decree 24. "The current gold market is quite sensitive to information related to Decree 24." related to Decree XNUMX", Mr. Trong emphasized.

An expert with 40 years of experience in the gold market explained that the main reason why the price of SJC gold bars is higher than in the world is that the supply is not much. In case Decree 24 has a direction to supply gold to the market, the gold price will decrease rapidly. “How Decree 24 summarizes and what solutions for the gold market will have a huge impact on prices. However, the source of idle money poured into gold in recent times has been quite large when the price increased from 13 - 14%, higher than the return on savings," this person commented.

Combine many solutions to manage the gold market

According to Associate Professor-Dr. Dinh Trong Thinh, an economic expert, the expectation of an increase in world gold prices causes domestic precious metals to also increase. Therefore, to shorten the gap between domestic and foreign countries, it is necessary to import gold to supply gold to the market, partly resolving the current distortion in supply and demand. In case the State Bank allows the import of raw gold and the supply of gold to the market, the SJC gold price may only be 1 - 2 million VND/tael higher than the world's.

“The study of amendments to Decree 24 needs to be carried out in a very scientific and careful manner. The problem is to ensure connectivity between the domestic and world gold markets. At the same time, prevent the "goldification" of the economy, what is the appropriate price difference for gold... In addition to imports, the first amendment is on the issue of gold bar monopoly, moving forward to abolish the gold bar monopoly, so that a A certain number of businesses are allowed to participate in trading this item," Mr. Thinh suggested and added that if appropriate regulations can be developed according to world practices, the market will gradually get used to gold trading. certificates, towards making people familiar with certified gold transactions, reducing physical gold transactions, the amount of physical gold can be put into national reserves or mobilized for important goals of the country.

Mr. Tran Thanh Hai, Chairman of the Board of Directors of SJC Phu Tho Jewelry Joint Stock Company, commented: The most successful of Decree 24 is the successful anti-goldization. The existence of gold is an objective reality in the context of inflation, world geopolitical fluctuations, and monetary policies of some major countries, especially the US. Therefore, wise management is needed, avoiding extreme measures but also avoiding laxity.

To solve the problem of domestic prices being higher than the world's that have existed for many years, according to Mr. Tran Thanh Hai, it is necessary to remove the conditions for trading SJC gold bars. Currently, only a few units that meet strict conditions are granted a license to buy and sell SJC gold bars. If Decree 24 removes this regulation and allows gold trading units to buy and sell gold, the market will easily form an average price. In addition, it is necessary to strictly control the border, prevent smuggling, bleeding foreign currency...

“The idea of ​​establishing a gold exchange is reasonable to limit speculation and virtual gold surfing. But to avoid the consequences of the gold exchange like in the years 2006 - 2009, when the financial leverage ratio is low, it is possible to increase this ratio to high. At the same time, there is a mechanism for those who want to withdraw physical gold on the floor. The most famous gold exchange in the world today is COMEX in Chicago (USA), which is also the place where gold prices are determined according to derivative contracts. But the decision on world physical gold prices comes from large gold producing and exporting countries such as South Africa, Australia, and Russia," Mr. Hai proposed.