Official auction of SJC gold bars, domestic gold price drops sharply

Domestic gold prices drop sharply after news that the State Bank is preparing to auction SJC gold bars. — Domestic gold prices fell sharply before the news that the State Bank of Vietnam is preparing to auction SJC gold bars.

Thus, after 11 years, the State Bank returned to auction SJC gold bars to increase gold supply to the market.

Specifically, this agency will send out a bidding notice one day before the bidding. After announcing the floor price, credit institutions and gold trading enterprises will begin filling out the bidding form. The above units have 30 minutes to decide on the volume and purchase price. 1 hour after the bidding closes, the State Bank of Vietnam will announce the results. Enterprises will have to deposit to participate in the bidding, no later than 5:00 p.m. on the day of receiving the bidding notice.

There are currently 26 units, including commercial banks and gold trading enterprises, establishing gold bar trading relationships with the State Bank. Of these, up to this point, about 15 units are qualified to participate in the bidding. The type of gold put up for bidding is SJC gold bars.

The first gold bar auction was held on March 28, 2013. In 2013, the State Bank of Vietnam held 76 gold bar auctions with a total winning volume of 1,819,900 taels out of a total of 1,932,000 taels offered. At that time, the price of SJC gold was still about 4.2 million VND/tael more expensive than the world gold price.

After the official information from the State Bank, the gold price has decreased slightly this afternoon. At 5:20 p.m. on April 15, the price of SJC gold bars was listed by Saigon Jewelry Company (SJC) at VND82.1 million/tael for buying and selling, respectively, at VND84.1 million/tael. The difference between buying and selling is VND2 million/tael.

Previously, the price of SCJ gold jumped to 85.5 million VND/tael, the difference between buying and selling was 2.5 million VND/tael. Thus, after only a few hours, those who bought gold at the peak lost 3.4 million VND/tael (including the loss due to the price drop and the difference between buying and selling).

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