At least Vietnam does its gold market rigging openly

Section:

Vietnam to Allow Gold Imports to Cool Local Prices

By Tran Thuy
Reuters
Tuesday, August 23, 2011

http://www.reuters.com/article/2011/08/23/vietnam-gold-idUSL4E7JN0VX2011...

HANOI, Vietnam -- Vietnam's central bank has authorised at least one domestic firm to import more gold to help cool soaring prices and state-run newspapers said it may open the market to unlimited imports to narrow the gap between local and world quotes.

Central bank officials, including Governor Nguyen Van Binh, could not be reached for an immediate comment, but sources with knowledge of a meeting between Binh and senior editors on Tuesday morning to discuss gold-related policies said the issue of allowing unlimited imports did not come up.

However, the State Bank of Vietnam has agreed to allow Saigon Jewelry Co (SJC), one of the country's biggest gold trading companies, to import gold based on its demand, said Nguyen Cong Tuong, deputy director of sales at SJC.

... Dispatch continues below ...



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Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

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The move would help narrow the difference between domestic and international prices, which on Tuesday was around $45 an ounce. Analysts say the gap fuels gold smuggling and speculation.

"State Bank's permission to import has effectively cut the domestic price from up to $100 higher than international price per tael to a few hundred thousand dong," SJC's Tuong said.

Early this month, the State Bank of Vietnam approved 5 tonnes of gold imports and said it could double the quantity soon as surging prices sparked a frenzy at gold dealers and jewellers.

The State Bank said in a statement on Tuesday three tonnes of gold had been imported by far.

The measures come as gold prices in Vietnam rose to fresh record highs in recent days as world prices surged to all-time highs above $1,910 on Tuesday, due to gold's safe-haven allure amid nagging fears about the world economy.

Vietnam's move to allow more gold imports adds to the picture of rising Asian demand after recent purchases by central banks in Thailand and South Korea.

SJC offered to sell gold at a record of 48.87 million dong ($2,347) per tael in Hanoi on Tuesday, SJC data showed. The latest price indicates a rise of more than 9 percent from a week ago.

One tael is equivalent to 37.5 grams or 1.21 troy ounce.

In a detailed measure to help cool gold markets published on Tuesday, the State Bank of Vietnam said it would monitor production and trading of gold bullion more strictly by issuing permits to a number of its selected trading firms.

This would allow the central bank "to intervene effectively in the gold market to fight against gold price speculation", the central bank said in a statement on its website.

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Lewis E. Lehrman on How to Solve the U.S. Debt Problem

Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.

Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.
"
Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."

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