At a gold shop in HCM City. Analysts call for easing gold policies as it is no longer a speculative asset class or cash substitute (Photo: VNA) According to banking expert Dr Can Van Luc said gold cannot be consideredspeculative since the Government has put it under strict watch since 2014.
Domestic prices are usually 5 million VND (216 USD) per tael of 37.5gm higherthan global prices, with the gap attributed to the limited supply of bothjewellery and bars.
For many years the State Bank of Vietnam (SBV) has not permitted the import ofgold bars to produce jewellery and has a monopoly on bullion production andimport-export.
So speculation has mostly died down.
He told Nguoi Lao Dong (The Labourer) newspaper: "However, in the long runauthorities should have a solution to equalise domestic and international goldprices. Such a big difference can lead to speculation and smuggling of goldinto the country."
According to economist Ngo Tri Long gold is no longer used to make paymentslike it used to be, and so if it is considered just a commodity, it isnecessary to be globally connected, especially when Vietnam is deeplyintegrating into the international market.
The country does not produce much gold, and so has to import, and authoritiesshould soon ensure there is an increase in the supply for gold to bring downprices.
The Vietnam Gold Traders Association has petitioned the SBV to grant licencesto businesses to produce and sell gold bullion.
On the afternoon of March 11 in HCM City, Saigon Jewelry Company bought gold at55.4 million VND (2,390 USD) per tael and sold it at 55.8 million VND (2,410USD).
Globally, the metal traded at 1,736 USD an ounce (or 2,091 USD) per tael,making domestic prices by 7 million VND per tael higher./.
VNA
