To manage the gold market to reduce external pressures, the State Bank said it is studying and amending Decree 24 to submit to the Government this month.
The world gold price reaching its highest level in 3 months also led to an increase in domestic gold price. After the world gold price surpassed the 2,100 USD/oz mark, the SJC gold price increased by 400,000 VND/tael in both buying and selling directions compared to yesterday, up to 78.8 million VND/tael for buying and 80.8 million VND/tael for selling. The gap between the SJC gold bar price and the international gold price continued to be high. Thus, since the fourth quarter of last year, after the domestic gold price started to increase, the gap between domestic and international prices has widened and always remained at 15 - 20 million VND/tael.
Therefore, narrowing the gap between domestic and international gold prices is also one of the important and consistent directions of the Prime Minister . The State Bank is required to have solutions to manage and operate the gold market appropriately and effectively in the first quarter.
At the end of the afternoon of March 5, at one point, the international gold price was trading at 2,127 USD/oz, up about 0.6% compared to the beginning of the session. Therefore, the increase in the domestic gold price today is understandable. The problem lies in the gap between domestic and international gold prices, somewhere around 17 million VND/tael. Therefore, according to experts, solving the supply and demand problem will be the key issue of the gold market.
The gap between SJC gold bar price and international gold price continues to be high
Since Decree 24 on Gold Market Management was issued, with the introduction of SJC as a national gold bar brand, for more than 10 years, the State Bank has not granted import licenses or minted new gold bars for the market. Therefore, even when demand is not too high, supply has not increased, causing the price of SJC gold bars to be significantly higher than the price of gold on the world market. Supplementing the supply of SJC gold bars can be considered an immediate solution.
Associate Professor, Dr. Nguyen Huu Huan - Lecturer at Ho Chi Minh City University of Economics commented: "Regarding the short-term solution, the State Bank can allow gold imports, or the State Bank can import gold to produce more SJC gold. This will increase the supply of SJC gold and the price may decrease. Secondly, to avoid losing such foreign currency, the State Bank can purchase gold through domestic gold trading units, which will limit our gold imports and meet the supply."
"From the perspective of gold as an investment asset, we need policies to regulate this market. On that basis, supply and demand need to expand, and we can regulate with tax policies so that supply and demand meet," said Mr. Phan Le Thanh Long - Founding Chairman of AFA Group.
In the long term, experts suggest that the State Bank allow the import of gold again to meet the domestic gold production demand. Not only gold bars, but also gold rings, gold jewelry... And to solve the problem of gold bar supply, the participation of many units and many different gold brands is allowed. In order to diversify the supply, creating competition in the market.
"We should allow some large organizations, specifically banks, to provide branded gold products as before. And of course there should be a reasonable annual management of quantity, contributing to the release of supply and demand. And I certainly believe that the price of branded gold will decrease, no longer having the difference as it is now", said Mr. Dinh The Hien - economic expert.
Importing gold may reduce foreign exchange reserves in USD. However, many experts believe that using USD to import gold only changes the type of reserve asset. In addition, there are many other proposals such as allowing gold account trading again to reduce the need to hold physical gold or establishing a physical gold exchange. And importantly, treating gold as a special commodity and increasing the marketability of this special commodity.
In the world market, when the USD strengthens, investors tend to sell gold to buy USD. The current picture seems to be irregular when both USD and gold prices in the world increase. The increase in domestic prices is inevitable due to international impacts. Therefore, it is necessary to have appropriate policies to manage the gold market soon to reduce external pressures. The State Bank said it is studying and amending Decree 24 to submit to the Government this month.
According to PV/VTV.VN
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