Establishing a trading floor, people can buy and sell physical gold or both credit gold and account gold?

Experts say there are many benefits to establishing a gold exchange and it would be better if the gold exchange was located in a new international financial center.

Reducing pressure on physical gold supply

The Prime Minister has just requested the State Bank, the Ministry of Finance and relevant agencies to study the establishment of a gold trading floor so that people can freely trade and buy and sell. Experts say that the establishment of a gold trading floor at this time is appropriate and promises to bring many benefits.

Sharing with VietNamNet reporter, Associate Professor, Dr. Nguyen Huu Huan - Ho Chi Minh City University of Economics , said that in the world there are many different types of gold trading floors: gold trading floors with accounts or physical gold, with gold delivery or hybrid, meaning that you can only trade price differences or want to receive actual gold.

According to Mr. Huan, the model of Vietnam's gold trading floor should be a hybrid model, which means both actual gold delivery and price difference trading needs. The establishment of a gold trading floor must be managed by the State Bank, controlling the market, avoiding the situation of underground gold trading floors causing many consequences, making it difficult to manage monetary policy and exchange rates.

The expert assessed that the gold trading floor will help reduce the difference between buying and selling prices. This difference is very large, about 2-3 million VND/tael. When buyers and sellers trade directly on the gold trading floor, the difference between buying and selling prices will be lower.

Furthermore, if credit gold and account gold are developed, the need to own physical gold among the people will decrease significantly.

With the hybrid model of physical gold, credit gold and account gold, the demand for actual gold will not be high. People will choose to deposit gold. This helps reduce the pressure on the supply of physical gold to the economy.

According to experts, when there is a gold trading floor, people's transaction costs in investing in gold will decrease. Photo: Nguyen Hue

Along with that, when there is a gold trading floor, price fluctuations will be more transparent, reducing speculation, profiteering or pushing up gold prices. From there, contributing to pushing domestic gold prices closer to world prices. At the same time, solving the current gold supply problem.

The gold credit exchange is similar to stock trading. Each person's account shows how much gold they own, helping people not have to store gold in their homes. People are still allowed to withdraw gold when needed.

However, Mr. Huan said that gold trading would be better in the new international financial center.

“In the international financial center, there will be a commodity exchange, gold is also a special commodity. Therefore, combining and placing the gold exchange in the international financial center will be more reasonable, the openness and attractiveness will be better. The State Bank can play an initial operational role before transferring it to the center,” Mr. Huan proposed.

Mr. Dinh Tuan Minh, Director of the Center for Market Solutions Research for Socio-Economic Issues, also acknowledged that the research on establishing a gold trading floor to meet people's needs is very appropriate and could be a strategy for Vietnam to shift part of its foreign exchange reserves to part of its gold reserves, in addition to foreign currency reserves.

When there is a gold exchange, the transaction costs for people in investing in gold will decrease. Instead of having to carry gold directly to buy and sell, people only need to trade on the exchange, recording in books. The market will be more transparent. The gold exchange will also open up many investment opportunities, allowing easy transfer from one asset to another.

"Instead of keeping physical gold at home, when there is an exchange, gold will be recorded in the account and that account can be exploited for business in many different forms. For example, gold in the account can be mortgaged to borrow capital for investment," said Mr. Minh.

How to set up a gold trading floor?

According to Associate Professor, Dr. Nguyen Huu Huan, in order to establish a gold trading floor, it is necessary to amend Decree 24 on the management of gold trading activities.

Along with that, there must be a legal framework to allow the establishment of a gold trading floor. It is necessary to clearly define what credit gold is and how it is traded.

“To build a gold trading floor, it is necessary to have an online trading system, linked with members, so it is necessary to research the mechanism of building the floor model. What technology is the floor? I propose that it must be the latest technology such as blockchain to ensure safety, security, openness, transparency for the market and faster,” said Mr. Huan.

Meanwhile, Mr. Dinh Tuan Minh said that to establish a gold trading floor, the state will have to calculate the gold reserves. At the same time, it is necessary to standardize physical gold with international gold. There should be regulations connecting gold on the trading floor with physical gold.

Along with that, there needs to be a legal basis for the Vietnamese gold market to connect with the international gold market.

“There should be regulations related to gold trading on the floor, gold accounts with physical gold. When people need to transfer gold accounts to physical gold, or want to transfer physical gold to gold accounts, what will happen? What are the specific value added tax rates for withdrawing gold accounts into physical gold, or transferring physical gold into gold accounts?”, Mr. Minh noted.

In addition, according to this expert, if the government borrows gold, it can pay an interest rate to the people. This solution will help mobilize the huge physical gold resources among the people to operate the gold trading floor without the need for imports.

Gold price today 5/26/2025 suddenly plummeted, SJC decreased by 2 million VND/tael Gold price today 5/26/2025 in the world suddenly reversed and plummeted. Domestically, SJC gold dropped sharply by 1 million VND per tael (selling) and 2 million VND (buying). The difference between buying and selling prices was up to 3 million VND.

The Prime Minister requested to study the establishment of a gold trading floor so that people can freely trade and buy; at the same time, strictly handle smuggling and prevent elements from manipulating and hoarding goods to disrupt the market.

Source: https://vietnamnet.vn/lap-san-giao-dich-vang-nguoi-dan-duoc-mua-ban-loai-vang-nao-2404751.html