Bullion trading starts to heat up

June 28, 2011 | 10:53

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The recent gold management final draft has put a positive spin on the domestic bullion market.

Sales at Phu Nhuan Jewelry Joint Stock Company’s (PNJ) outlet system have been on the rise in recent days, averaging 1,500-2,000 gold taels per day. In respect to gold bars, the transaction volume was around 1,000 taels per day.

In regard to future market trends, a Saigon Jewelry Joint Stock Company (SJC) representative said soft final version gold bar trading regulations would heat up transactions in the market.

A PNI executive said that gold bar transaction values saw a hike against that in late May or early June where the market was inundated with controversial information about the Vietnamese government might put a ban on gold bar trading in the market.

Regulations on gold bar trading in the draft final version are more open compared to the previous ones as under the new regulations gold bar trading would not be entirely forbidden but only restricted, said Sacombank Jewelry Company Limited general director Nguyen Ngoc Que Chi.

Accordingly, gold bar trading firms must be licensed by the State Bank and meet set requirements.

“People still remain cautious waiting for the final decision when the draft decree was ratified by the government,” Chi said.

What the insiders talked about the new gold management draft

General director of Vietnam Gold Business and Investment Joint Stock Company (VGB) Tran Thanh Hai

The final draft regulations require gold and jewel trading firms to re-register and propose restricted gold bar trading. However, scores of gold trading firms and the Vietnam Gold Business Association had proposed allowing account-based gold trading through the gold exchange, however, this issue was not mentioned in the new draft.

VietnamGold Business Association general secretary Dinh Nho Bang

Tight control over gold bar trading is important. However, the regulation taking jewel gold trading as a conditional business and relevant businesses must re-register goes against the market practice and world trends.

By Thuy Vinh

vir.com.vn

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