DOJI welcomes bullion trading ban

DOJI Gold & Gems Group’s CEO Do Minh Phu supports the Government on its road map to ban bullion trading in the free market, he said in an interview with the state-run Chinh phu.vn March 29.

Government is not going to close bullion free trade, but attempts to put the trading under strict control with authorized traders.

The public has recently turned interest to hold jewelry instead of bullion due to bullion price volatility and stricter gold-trading regulations, Phu said.

However, bullion is highly standardized in purity and more convenient for savings while jewelry often involves processing and designing costs, and expose to more risks of incorrect purity, he pointed out, warning that they should be more skeptical to invest in jewelry.

Phu said it’s very difficult to regulate gold market by allowing the public to sell gold while freezing their purchase transactions, suggesting the Government to pick up their confidence on domestic currency instead.

It’s very important to regulate gold traders including setting stricter conditions in charter capital, scale, operations and tax payments, Phu recommended, adding that their bullion production limit should be closely watched to help control gold supply.

DOJI’s CEO added that the Government should create favorable conditions to drive gold traders to jewelry trading which in turn supports demand for consumption and exports. It’s also a long term goal to boost up local potential jewelry industry, attract more labors, and enhance competitiveness in the global market.

DOJI generates total revenue of VND20trillion per year, of which 80-85% attributed to bullion. The policy of bullion trading ban may cause its revenue to shrink by 50%, the state-run Chinh Phu.vn reported. – Stoxplus.com

Posted by VBN on Mar 30 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