Continuously adjusted in October 2023, SJC gold price has widened compared to world gold to nearly 14.45 million VND per tael, this is a very large gap. Finance Banking Domestic gold is more expensive than world gold, National Assembly delegate proposes to establish an international gold exchange Linh Nhi • {Publishing date} Continuously adjusted in October 2023, SJC gold price has widened compared to world gold to nearly 14.45 million VND per tael, this is a very large gap.
At the discussion of the delegation on socio-economic issues on the morning of October 24, National Assembly Delegate Ta Thi Yen (Dien Bien) proposed that the Government should have solutions to manage and stabilize domestic gold prices.
According to Delegate Yen, in recent years, domestic gold prices have experienced many fluctuations, especially recently, there has been a huge difference between domestic SJC gold bar prices and world gold prices.
With continuous adjustments in October 2023, the SJC brand has expanded to nearly 14.45 million VND per tael of world gold, a huge gap, dominated by the monopoly in importing and producing SJC brand gold bars.
According to Ms. Yen, if we consider the gap between domestic and world prices as a “measure” of the difference between domestic gold supply and demand, we can see that the market is still lacking in supply. The SJC gold market is monopolized and has many shortcomings.
Currently, Decree 24 of 2012 on the management of gold trading activities after more than 10 years of adjustment has revealed many limitations. Therefore, the Delegate proposed that the Government consider amending this Decree 24 and should grant licenses to import raw gold to a number of enterprises that have been certified to be qualified to produce gold; promptly issue documents to create a legal framework for gold account trading activities, regulate the business activities of gold exchanges, and have a more flexible mechanism to help the domestic gold market connect with the international market.
The delegate suggested: “The Government can consider establishing a national gold exchange to regulate the gold market, issue gold certificates and gold bonds to mobilize gold from the people, instead of the current gold auction, to meet the people's gold investment needs as well as the raw gold needs of gold trading enterprises, contributing to ensuring the market operates transparently and effectively.”
Decoding the reason why SJC gold price is increasing rapidly, higher than the world price
Source: Investing.com
