There is no shortage of gold, and the black market gold trade will end.

With difficulties in buying and selling gold, people are forced to turn to the 'black market'.

At the end of July, Ms. Nguyen Thi Loan from Vinh Phuc needed to buy 5 taels of SJC gold bars to pay off a debt. However, after many days of struggling to register online, she was only able to buy 1 tael of gold. To buy the second tael, she would have to wait 3 months. In other words, to buy the full amount of gold, she would have to wait a whole year.

Fearing a sharp increase in gold prices, in early August, she had no choice but to buy gold on the "black market" at a price 3 million VND/ounce higher than the price listed by banks.

"Because of my busy work schedule, registering to buy gold online is difficult and often fails, so I had to settle for buying it at a higher price elsewhere," she said.

In fact, over the past few months, many people in need of SJC gold rings and bars have faced difficulties in purchasing them. This is because banks are selling gold in small quantities, while most businesses have reported having no gold bars or gold rings available. The few stores that have indicated that those wishing to purchase gold rings must wait 10-15 days.

People are having difficulty buying gold bars and gold rings. Photo: Minh Hien

In contrast, the black market sees a bustling trade in gold bars and rings, with price differences ranging from 1 to 5 million VND per tael, depending on the type and time. Social media groups even offer registration and sales slots for online gold purchases at four banks, priced at 300,000 VND per slot.

Economist Associate Professor Dr. Dinh Trong Thinh recalls that in the past, his family also owned many Kim Thanh gold bars – a very rare type of gold at that time. When he needed money, he had to secretly sell them, and buying this type of gold was even more difficult.

"Currently, the situation in the market is almost like the 'subsidy era'," Mr. Thinh said, using a metaphor. "Because the four commercial banks are selling limited quantities, and gold shops, according to reports, have run out of gold rings and gold bars. People are forced to turn to the 'black market'."

According to expert Tran Duy Phuong, the State Bank of Vietnam (SBV) has recently achieved many successes in managing the gold market. The assignment of four commercial banks and Saigon Jewelry Company Limited to sell SJC gold bars has narrowed the price difference between world and domestic gold prices, from 17-18 million VND to an average of 4-5 million VND per tael. He considers this a positive sign, bringing gold prices to a favorable level this year.

However, the market is experiencing a situation where businesses are still listing gold bar prices, but are refusing to sell when people come to buy. Meanwhile, the amount of gold banks are selling is limited; each person is only allowed to buy 1 tael (approximately 37.5 grams) and can only register to buy more after 3 months.

Therefore, those eager to buy gold, fearing price increases, chose to buy on the "black market." In June, the price of SJC gold bars on the "black market" differed by 4-5 million VND/ounce compared to the bank's listed price. By July and August, this difference had decreased to about 1 million VND/ounce, Mr. Phuong said.

More banks should be allowed to sell gold.

To address this situation, expert Tran Duy Phuong suggests that the State Bank of Vietnam (SBV) should not continue to intervene administratively in the gold market. It's time to let the gold market operate according to its own rules. The SBV should monitor from behind the scenes, and if the market shows unusual activity, it should intervene to adjust, as it has done recently.

"The possibility of a volatile gold price surge like before will no longer exist," he said. The expert analyzed that from April to August this year, the amount of SJC gold bars that stabilized and were auctioned off to the market was very large, reaching over 300,000 taels. Therefore, the market is no longer experiencing a severe shortage of SJC gold.

The gold market needs to operate according to its own rules. Photo: Hoai Bac

Previously, gold prices rose due to a lack of supply. However, in the last 2-3 months, the supply has gradually become abundant, so the likelihood of a gold shortage will not be as high as before, he observed.

In reality, the difference between domestic and international gold prices has narrowed to 4-5 million VND per tael. Therefore, the State Bank of Vietnam needs to consider returning the gold trading mechanism to the market, allowing for equal opportunities in gold trading, and enabling people to buy gold anywhere.

If the State Bank of Vietnam (SBV) decides to participate in price stabilization, he believes the scope of gold sellers should be expanded. Instead of just the four state-owned commercial banks and SJC Company as currently, more banks should participate in selling gold. These banks could purchase gold from the SBV to resell, contributing to meeting the public's demand for gold.

The expert also reiterated the need to consider abolishing the SJC gold bar monopoly. Because, when the SJC gold monopoly is removed, other gold bar brands on the market will compete on price, and people will have the right to choose from many different gold brands to buy.

However, that is only a solution to stabilize the SJC gold bar market; according to Mr. Phuong, the issue of gold ring scarcity still requires importing raw gold.

He pointed out that businesses want to produce gold rings and jewelry but currently lack raw materials. To sell gold products to the public, businesses must purchase gold raw materials with clear invoices and documentation. However, this is extremely difficult because the amount of gold raw materials with documentation is small, and the amount sold on the market is also small.

For over 10 years, no raw gold has been imported, so he suggested that the State Bank of Vietnam should consider allowing imports based on the needs of businesses. This could involve granting quotas to businesses for raw gold imports, or the State Bank of Vietnam could directly import and then redistribute the gold.

According to Mr. Phuong, if the issue of raw gold is not resolved, gold trading in the "black market" will continue, shifting the risk to the people because the quality is not monitored.

In addition to the above solutions, expert Dinh Trong Thinh suggests that banks selling gold and businesses need to be transparent about the volume of transactions with the State Bank of Vietnam (SBV). With accurate data on market supply and demand, the SBV can formulate appropriate policies for managing, buying, selling, and importing raw materials. This will help balance the supply and demand of gold in the market.

Borrowing gold, people are restless because they can't buy gold to repay their debts . Gold prices have remained stagnant for a long time, but people are finding it difficult to buy gold bars. Many customers are complaining because they can't buy gold bars to repay debts from many years ago.

Source: https://vietnamnet.vn/vang-khong-thieu-se-cham-dut-canh-dam-dui-mua-ban-vang-cho-den-2311427.html