Illegal “gold-trading floors” heat up

Illegal “gold-trading floors” are actively operating although the State Bank of Vietnam already stopped gold trading on account in March, the local newswire Thanh Nien (Youth) reported November 1.

Illegal “gold-trading floors” are actively operating although the State Bank of Vietnam already stopped gold trading on account in March, the local newswire Thanh Nien (Youth) reported November 1.

“Local investors only need an initial margin of 2% to buy or sell gold”, said Cuc, a gold broker from Dai Huu Phat JSC, adding that investors can go to Orient JS Commercial Bank or Agribank to open a deposit account as the margin and “the company will partner with Ben Thanh jewelry to supply physical gold to customers”.

Hong Hoi Consultant and Investment Company lured gold investors by requiring investors to put an initial margin of only 1%; and a flexible trading time of 24/24h, said Vy An, the company’s gold broker, adding that investors only need VND33million instead of VND3.3billion to buy/sell 100 taels. Currently, the company has opened 8 branches in Ho Chi Minh city and Can Tho.

Many other companies including Kim Thieu Consultant and Investment Company, GCI gold trading floor, International Gold Investment company (IGI) also joined the race by offering an initial margin of 1% to attract gold investors.

Worse still, some local lenders traded gold on account overseas, the newswire added, citing that a local investor traded gold on the website www.fxpro.com with the financial leverage ratio of 1:500 and made payment transactions on his $50,000 Visa account. On October 21 alone, he earned $45,000.

According to Interbank FX’s statistics, many Vietnamese investors were trading forex overseas in late September, the newswire cited without giving specific figures. – Stoxplus.com

Tags: vietnam gold, Vietnam gold market, Vietnam trading floor