2.4m taels of gold sent at banks by people

The State Bank of Vietnam (SBV) assessed that the volume of gold kept by people is around 300-500 tons. In which, banks are keeping total over 2.4 million taels (equaling to 100 tons) of gold of people as savings.
However, the volume in market circulation is very few because the current regulation does not allow commercial banks to sell out the deposited gold, even as the market faces shortage.

On Aug 11, one ton of gold was imported to Vietnam. More than $250 million is needed to import entire licensed 5 tons of gold.

In order to help the domestic price in connection with global gold market without losing much US dollar, Tran Thanh Hai-General Director of Vietnam Gold Business Joint Stock Co (VGB) said that initially it was necessary to license banks to sell gold.

Also, the experienced institutions should be undertake the corresponsive tool of gold to foreign countries. For example, instead of spending $50 million importing 1 ton of gold, a deposit of few hundreds of thousand of US dollar for the corresponsive tool of gold will be ensured.

When the local gold market faces scarcity, domestic gold becomes higher than global level. By that time, banks will sell gold and conduct corresponsive tool with a low deposit ratio whereby gold price will be brought down to a suitable level. Banks will buy back domestic gold and cancel overseas purchase order. – Vietbiz24

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

Posted by VBN on Aug 17 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry