People holding gold bullions of brand names other than that of Saigon Jewelry Co can exchange their precious metal for SJC gold bullions at equal price, the State Bank of Vietnam has said.
 |
| For illustration purposes only - Photo: Tuoi Tre |
The announcement has raised concerns among gold bullion producers who fear their products will be devalued since only SJC gold bullions will be allowed for circulation on the market after the decree takes effect.
Nguyen Ngoc Que Chi, CEO of Sacombank Jewelry Co, told the Saigon Times Online that the central bank’s decision to allow for equal price exchange among gold bullions of different brands can partly ease the concerns.
“Since gold bullions of other brand names have comparable quality to SJC, they should be allowed to be exchanged for SJC at equal value,” Chi said.
Nguyen Thanh Truc, CEO of Agribank Jewelry Co, said the cost of converting gold bars of other brand names into SJC bullions is only VND30,000 (USD1.4) a tael.
Thus, the public should not rush to sell out their gold bullions to avoid causing market disruption, Truc advised.
The central bank also assured that after SJC has become the monopoly in the gold trading market, gold bullions of other brand names will still be eligible for circulation.
Meanwhile, Nguyen Minh Chau, CEO of Hanoi-based Bao Tin Minh Chau Jewelry Co, said that although it was still unknown when the draft decree would become effective, his business had been adversely affected as a large number of investors holding the company’s Rong Thang Long gold bullions had recently scrambled to sell out.
Chau said to cool the feverish trading, his company had to cut the selling price to simultaneously bring down the buying price.
“We have intended to seek permission from the central bank to turn our gold bullion into SJC gold,” Chau said.
“This would enable us to buy Rong Thang Long gold bullion from consumers at a higher price, which would also benefit them.”
Truc of Agribank Jewelry Co said the fact that SJC would become the national gold bullion brand name, which is expected to be SBV, was “a good move by the central bank,” since it would fortify the latter’s ability to moderate the market and curb speculation and price manipulation.
“However, the change should be made as soon as possible since SJC, currently operating as a business, will still have to focus on profits, and their operations can have destabilizing effect on the market,” Truc said.
