Gold auction canceled again

The State Bank has to continuously cancel gold auctions because too few businesses participate.

The above announcement was just issued by the State Bank this afternoon.

This is the second gold auction to be canceled. Previously, on April 22, due to insufficient members registering to bid and transferring deposits as required, the State Bank also canceled the gold auction.

Yesterday afternoon, the State Bank announced to hold a gold auction at 9am this morning with the total expected auction volume being 16,800 taels of SJC gold bars.

However, the reference price for deposit is 82.3 million VND/tael, 1.6 million VND/tael higher than the auction on April 23.

The minimum bidding volume that a unit participates in is 1,400 taels and the maximum is 2,000 taels.

Speaking to reporters, expert Ngo Tri Long said the main reason why only one unit participated and the State Bank had to cancel the bidding this morning was because the minimum bidding volume as well as the deposit price were very unreasonable.

"The country currently has 38 gold trading units, but very few businesses have enough potential to buy 1,400 taels of gold at once, equivalent to more than 110 billion VND.

Besides, the deposit price is too high in the context of the world gold price falling quite deeply in the past 3 days," said Mr. Long.

On the other hand, according to gold experts, people and investors are strongly considering buying gold as a safe haven at this time when the gold price has risen too high. Currently, the world gold price is only at 2,317 USD/ounce, down 77 USD/ounce compared to the peak on April 12.

Meanwhile, in the domestic market, the price of SJC gold bars by late afternoon today, April 25, increased again after a slight decrease in the early morning, despite the plummeting world gold price.

At 12 noon on April 25, the listed selling price of gold bars at SJC and Bao Tin Minh Chau companies was around 84 million VND/tael.

The buying price of SJC gold bars by gold trading enterprises has decreased by 800,000 VND/tael, compared to the closing price of the afternoon session. At 12 noon today, most of them were at 81.7 million VND/tael.

Compared to the converted world gold price (equivalent to 71 million VND/tael), the price of SJC gold bars is over 13 million VND/tael higher.

According to Mr. Long, gold trading enterprises as well as credit institutions must consider very carefully before participating in bidding.

"Businesses must consider profits. If they win the bid, they must sell at a price higher than the winning bid price.

Meanwhile, according to the Government 's direction, the goal is to stabilize the domestic gold market, bringing the difference between domestic gold prices and world gold prices closer, but through the first gold auction, this goal has not been achieved," Mr. Long commented.

Experts also said that the State Bank's setting of deposit prices and floor prices that are too high has caused gold prices in the market to "follow the rain" and gold businesses do not dare to participate, especially before a long holiday because of weak purchasing power and great risks if the world gold price plummets during the holiday.

"In the previous auction 11 years ago, the State Bank stipulated the minimum volume to be 500 taels. This was within reach and created conditions for gold businesses to participate, thereby increasing the supply of SJC gold bars to the market.

In my opinion, this bidding should also apply the same minimum volume regulation. Otherwise, gold businesses will have to consider carefully," said expert Tran Duy Phuong.

TB (according to Tuoi Tre)

Source: https://baohaiduong.vn/lai-huy-dau-thau-vang-379883.html