Gold price gap widens vastly on strong local gold rush

The difference between local and global gold prices is expanding strongly, reaching a vast VND1.8 million a tael on Tuesday as strong local demand has almost devoured the huge import quotas of four tons granted to bullion traders.

Truong Cong Nhon, deputy general director of Saigon Jewelry Holding Co. (SJC), said his business last weekend imported over 500 kilos of gold based on the quota approved earlier by the central bank.

The newly-imported 500 kilos of gold, equivalent to about 13,300 taels, has sold out already, while the same supply will run out within two days if the price is lower, said SJC’s deputy manager Nguyen Cong Tuong.

Phu Nhuan Jewelry Joint Stock Co., (PNJ) was also allocated the same quota last week. At this time, the company has to replenish its stock with gold from other sources while awaiting the imported volume scheduled to arrive next week, stated Nguyen Thi Cuc, PNJ’s deputy general director.

Weeks ago, the central bank granted gold import quotas to local enterprises to ensure the balance between supply and demand but domestic gold prices still see a price gap of over VND1.8 million a tael compared to global prices. A tael equals to 1.2 troy ounces.

An executive of a domestic bullion trading company said the State Bank of Vietnam had allowed bullion traders and banks to import over four tons of gold.

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Tags: vietnam gold, Vietnam gold market, Vietnam gold prices