What will happen to the gold price when Big4 banks sell gold to the people?

Speaking to reporters, BIDV leaders said that next Monday, June 3, the bank will start selling gold at locations in Ho Chi Minh City and Hanoi, and later expand to other localities such as Da Nang, Can Tho, Ba Ria - Vung Tau, etc.

Mr. Le Ngoc Lam - General Director of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) said that the selling price of gold bars will be publicly announced on the official websites of state-owned commercial banks for people to easily follow.

"We determined that in order to implement the market stabilization policy of the Government and the State Bank, we will not set a profit target but will supply at a suitable price based on the purchase price from the State Bank," said Mr. Lam.

Praising the State Bank of Vietnam's (SBV) solution this time, experts said that domestic gold prices will approach world gold prices after being sold early next week.

Accordingly, the world gold price is currently trading around 2,300 USD/ounce, approximately 2,400 USD/ounce. Converted at the current exchange rate, plus taxes and fees, the domestic gold price is likely to be sold around 73-74 million VND.

Talking to Lao Dong, economic expert Ngo Tri Long commented that the domestic gold price has been too far apart from the world gold price in recent times, at times about 20% higher. This leads to the risk of gold being smuggled and foreign currency being lost.

When the State Bank announced the sale of gold to the banks, it was stated that the price would be determined by the State Bank based on the world price because the goal was to reduce the difference between domestic and world gold prices. Therefore, banks could not sell according to the market gold price.

According to experts, the main point of concern is still the need to amend Decree 24 on gold market management.

It is worth mentioning that, to stabilize the gold market in accordance with the Prime Minister's direction, experts believe that the State Bank needs to change its management mindset. Operators should only carry out management work, creating opportunities for businesses to import gold, creating a level playing field. From there, there will be many gold products, avoiding one brand.

In addition, besides supplying physical gold, it is necessary to expand to other products such as gold certificates, using derivative instruments, opening gold exchanges...

Today, the price of SJC gold bars is being sharply reduced by some domestic businesses.

Compared to the opening price of yesterday's trading session, SJC gold price at Saigon Jewelry Company - SJC decreased by 4.4 million VND/tael for buying and decreased by 2.9 million VND/tael for selling.

As for the price of gold rings, at the opening of today's trading session, the price of 9999 Hung Thinh Vuong round gold rings at DOJI was listed at 74.85-76.45 million VND/tael (buy - sell).

Compared to the opening of yesterday's trading session, the price of 9999 gold rings at DOJI decreased by 650,000 VND/tael for buying and decreased by 450,000 VND/tael for selling.

Saigon Jewelry Company listed the price of gold rings at 74.65-76.25 million VND/tael (buy - sell).

Compared to the opening of yesterday's trading session, the price of 9999 gold rings at Saigon Jewelry Company decreased by 350,000 VND/tael for both buying and selling.

Source: https://laodong.vn/kinh-doanh/gia-vang-se-ra-sao-khi-ngan-hang-big4-ban-vang-cho-nguoi-dan-1346602.ldo