Market set to enter a golden age

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What measures should be taken to make domestic market gold prices correspond with the world market’s?

Dissimilarity in pricing occurs when there is a serious market imbalance in the supply and the demand, particularly in the case of gold. This came as banks were recently stopped from accepting gold deposits and lending. Price distortions are inevitable when the market featured such a serious supply and demand imbalance. Competent state bodies then need to take steps in the right direction to address the situation.

How can the huge volumes of idle gold within the community be used to service socio-economic development?

It should be recognised that when people deposit gold at banks, this means they place their belief on banks. The next step will be how to retain the belief.

The decision not allowing banks to receive gold deposit and lending led to gold sources accumulated in the community. To release those sources suitable mechanisms must be created to encourage people to deposit gold at state-controlled places and they are content with the decision. A commodities  exchange should also be established. When the exchange is in place, people will be likely to put gold in the depository and the state will then succeed in mobilising gold from the community.

Substandard gold has recently appeared in the local market, causing losses to consumers. Will the gold plate banning decision challenge gold quality control?

Gold plate is a sort of commodity featuring high liquidity. The state’s commitment to gradually banning gold plate trading in the market triggered a sharp decline in gold plate revenue. Trading firms have acted cautiously waiting for new decisions from central bank which are expected to be aired in the third quarter of 2011.

However, this is also time evildoers found their way to fish in troubled water. They put gold blended with mixtures into circulation with ‘softer’ prices to attract customers. Meanwhile, many gold shops do not have cutting-edge equipment to properly assess the gold quality. This fact shows that Vietnam’s bullion market is still highly vulnerable.