Global gold prices have recently reached record highs, exceeding 3,600 USD per ounce at one point. Domestically, the price of SJC gold bars has risen even faster, surpassing 135 million VND, a premium of over 20 million VND per bar compared to global prices.
Amidst this volatility, the State Bank's Branch 2 (covering Ho Chi Minh City and Dong Nai) issued a reminder to mitigate non-market factors impacting gold market stability.
The State Bank's Branch 2 emphasized gold's volatile nature and its susceptibility to market forces. It urges caution and careful consideration before purchasing or investing in gold to avoid potential risks.
Consumers are advised to buy and sell SJC gold bars only at licensed credit institutions and businesses. Adhering to regulations is crucial for market stability, curbing speculation, price manipulation, and unnecessary psychological impacts.
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Gold bar transactions at a store. Photo: Thanh Tung |
Gold bar transactions at a store. Photo: Thanh Tung
Unlicensed jewelry businesses trading gold bars with individuals or organizations are violating regulations and face penalties.
The State Bank's Branch 2 also reminded businesses to strictly adhere to regulations regarding licenses, production certifications, facilities, invoices, product origin, quality, and transparent pricing. This transparency, according to authorities, is not only a business responsibility but also a preventative measure against fraud, counterfeiting, smuggling, and tax evasion.
The recent surge in domestic gold prices, according to the State Bank, stems from three main factors, primarily the global price increase. Public anticipation of further price hikes has also fueled demand. Meanwhile, domestic supply is limited due to the State Bank's temporary suspension of SJC gold bar sales during the transition to a new gold management mechanism.
According to the State Bank, the demand for gold reserves among businesses is not high. Unlike other commodities, gold is difficult to stockpile due to the substantial capital costs involved.
Authorities have recently concluded inspections of major gold-trading businesses and commercial banks and are currently finalizing their report. Following the Prime Minister's directive, the State Bank will intensify inspections, investigate, and address any violations. Deputy Governor Doan Thai Son stated that the most crucial measure is to expedite the implementation of the new gold market management mechanism, ending the monopoly on gold bars, as approved by the government.
Quynh Trang
