Gold trading floors turn to other transactions

Many gold trading floors have shut down as of March 30 ordered by the Government. Now many other kinds of trading floor communities have arisen, trading various types of commodities.

Gold trading floors have only closed the trade of gold on account, but they have not disappeared as expected. Instead of serving gold trading activities, the floors now provide trading activities for other commodities.

Hong Hoi Company used to trade gold, but now it gathers silver and platinum investors to make transactions. Every investor receives software to serve transactions of both. Investors must pay a minimum security deposit of 20 million dong when they open a new account. The applied prices are the prices of silver and platinum traded on the world market.

Meanwhile, others are operating as farm produce trading floors. Transaction prices are also the world’s prices, while investors pay in dong. Still others trade foreign currencies (US dollar, Japanese Yen and Euro) and even energy products such as crude oil, petrol, gas and coal.

A financial expert noted that the trading floors are breaking laws when serving transactions of foreign currencies and energy products. The trading of these products is prohibited in Vietnam because they influence monetary and energy security.

As such, investors, who make transactions on the floors, have to bear legal risks in addition to business risks, since their knowledge about the commodities and the markets remains limited.

Analysts say that not many investors have turned to new commodities. One officer of a trading floor admitted that trading floors are all rushing to look for new investors since many gold investors have left the trading floors. “It is not easy to get investors nowadays, because commodities in transactions are not as popular as gold,” the officer lamented.

Some trading floors have decided to provide finance investment consulting services. On paper, these are finance investment consultancy services, but in fact, investors are trading gold on account. The only difference is that if investors have troubles, they will not be able to ask for intervention by management agencies.

TBKTSG

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