Increase gold supply to the market

On May 26, the world gold price decreased by 1.5 million VND/tael compared to the end of last week, to 119 million VND/tael, but was still nearly 14 million VND/tael higher than the converted world gold price, equivalent to a difference of 13.3%.

Lack of raw gold, according to gold businesses, gold jewelry production is also facing difficulties - Photo: THANH HIEP

Previously, at the Government Standing Committee meeting on gold market management, the Prime Minister requested to study the establishment of a gold trading floor in the direction that people are free to trade and buy and sell, while separating state management from gold production and trading activities.

Responding to the question of how to reduce the difference between domestic and international gold prices to only about 1-2% as directed by the Prime Minister, Mr. Nguyen Ngoc Trong, director of NPJ Gold Company, said that the intervention of the State Bank is needed, especially to increase the supply of gold to the market.

Recently, when the price of gold has increased continuously, people's demand for gold has increased but the gold supply is limited because for a long time, SJC Company has not been allowed to produce more SJC gold bars, leading to the domestic gold price sometimes being 18 - 19 million VND/tael higher than the world gold price, a very unreasonable difference.

Therefore, first of all, it is necessary to allow the import of raw gold and the production of SJC gold bars to increase the gold supply for the market, bringing the domestic gold price closer to the world gold price.

"If we establish a gold exchange, we should follow the central exchange model like Hong Kong and New York exchanges. If we let everyone open their own exchange like before, many negative problems will arise," Mr. Trong said.

Meanwhile, according to expert Ngo Tri Long, after 13 years of implementation, Decree 24 with the regulation that the State Bank has the exclusive right to produce gold bars, while there is only one gold bar brand, SJC, has caused many problems because the management agency "both plays football and blows the whistle".

Therefore, it is necessary to amend this regulation and at the same time allow gold companies to import raw gold under State management.

In addition, the new management agency only manages physical gold, not gold accounts. If we only focus on physical gold, people's capital will be sucked into gold, and money will not be put into production...

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If establishing a gold exchange, according to Mr. Long, it is necessary to carefully study the model, participants, and which agency will organize management?...

There are dozens of gold exchanges in the world operating in various forms such as selling physical gold (gold bars, gold ingots), gold accounts or gold futures contracts.

"In 2012, in the context of an unstable gold market, Decree 24 had to be issued for management, but this was only a temporary solution and could not last forever.

Therefore, it is necessary to quickly amend Decree 24 to "untie" the gold market, gold jewelry manufacturing companies and goldsmiths. Due to the lack of raw material supply, gold jewelry businesses have been in a "half-dead" situation recently," Mr. Long suggested.

Gold jewelry business facing difficulties

At the annual general meeting of shareholders of Phu Nhuan Jewelry Joint Stock Company (PNJ) at the end of April, Ms. Cao Thi Ngoc Dung - Chairwoman of the Board of Directors of PNJ - said that the jewelry industry has faced difficulties in recent years due to the supply of raw gold and will face even more difficulties in 2025 due to uncertainties in the global economy .

"The atmosphere of the recent God of Wealth season was not as good as previous years, due to the extremely difficult supply of raw materials," said Ms. Dung, adding that because she was not licensed to import gold, the company had to buy back old jewelry and then separate the metal to have raw materials for production, the process of making raw materials was prolonged and inventory increased.

"There were times when the company had to give gold factory workers a few days off because there was no source of raw materials or buying raw materials at that time was not profitable," Ms. Dung informed.

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Source: https://tuoitre.vn/tang-cung-vang-cho-thi-truong-20250526235207141.htm