Gold trading floors prepare to close

Runners at many gold exchanges maintain that they are not surprised about the Prime Minister’s decision to shut gold exchanges as of March 30, 2010.

The ACB gold trading floor in Hanoi became quieter on December 31, right after newspapers reported the decision to close gold trading floors. Investors on the trading floor gathered to talk about the decision.

Tran Trong Nghia, an investor who once petitioned the Government about the problems on the ACB trading floor in 2008, responded: “It is a reasonable decision to ban trading gold on account. There are no rules for gold trading floors, and investors are always the ones who suffer.”

Nguyen Duc Thai Han, Deputy General Director of ACB Bank, which runs the ACB gold trading floor, affirmed that they will close the exchange by March 30. All matters relating to investors’ benefits will be settled in accordance with the contracts signed between the gold exchange and investors.

IGI gold exchange was also silent on December 31. Nguyen Huy Duong, Deputy Director of the gold exchange, explained that investors wanted to relax on the days just before the New Year. The gold exchange was also preparing to close its doors.

“We now have nearly 1,000 accounts, including the ones which have been left idle for a long time,” he revealed. “In fact, we just need one day to finalise the accounts of investors.”

With 40 officers and the current network of computers, Duong said that there will not be any difficulties. As the company has many business functions, workers will shift to other divisions, such as securities and real estate.

At Hoang Gia Securities Company, which acts as the of Wall Street Gold Trading Floor, Nguyen Hoang, Head of Marketing Division, said that agents had not taken orders for the last two months, in part because the job brings profits of only 15-20 million dong a month.

On December 31, 2009, VTG gold trading floor notified clients that transactions will be shut down as of March 30. Normal transactions will still be carried out until that day.

Lam Minh Chanh, Director of Vang The Gioi, the owner of VTG gold trading floor, revealed that the company will also close. Chanh stated that the gold trading floor will serve the clients until March 30 and will terminate contracts with those who wish to halt transactions now.

Chanh said that it will not take much time to arrange the gold exchange closing, adding that three months would be enough to do everything.

Gold exchanges refuse to give details about the closures because they are still awaiting the decision from the State Bank of Vietnam.

Han from ACB gold exchange observed: “We still cannot say anything at this moment, because we are still awaiting guidance from the State Bank.”

There are some 30 operational gold trading floors. A general director of one gold trading floor estimated the floor brings 200-300 billion dong a year to his bank. Bank will now have to provide other services to offset these lost profits.

VietNamNet/TP

Tags: Vietnam gold market