You are here
Vietnam central bank admits intervening in gold market to support its currency
Only in a nominally communist country does a central bank tell the truth.
* * *
Vietnam Central Bank Vows to Intervene in Gold Market to Maintain Stability
From Tuoi Tre (newspaper)
Ho Chi Minh City, Vietnam
Monday, May 26, 2014
The State Bank of Vietnam has enough gold bullion that can be sold on a large scale to intervene in the local gold market to ensure its stability, said a senior official of the Vietnam's central bank.
If there are more fluctuations in the gold market, the central bank will jump in to stabilize it, said SBV Deputy Governor Dao Minh Tu in a press release on Sunday afternoon.
Though the gold prices in domestic market have fluctuated over the past few days, through monitoring and analyzing market information, the bank has not found any evidence that those changes in price may have been caused by the fluctuations in the world market or the gold supply and demand in the market, Tu said.
... Dispatch continues below ...
Safe and Private Allocated Bullion Storage In Singapore
Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore.
Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore:
And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1-302-635-1160 in the United States. Or email them at firstname.lastname@example.org.
Thus the central bank can confirm that those fluctuations in the gold price on the domestic market are mainly due to psychological factors, he said.
Someone has taken advantage of the tension in the East Vietnam Sea to speculate on gold bullion and cause the price hike, making a psychological impact on local buyers.
As a result, the State Bank of Vietnam warns local people to be cautious when deciding to buy or sell gold bullion to avoid unnecessary losses, Tu added.
This is the first time in 2014 when the bank said it will likely resume its gold auction activity, an activity that was stopped with the last auction held on December 28, 2013.
Previously, the local financial market operator had twice sent the same messages confirming the stability of the local market.
Most recently, on May 20, the State Bank of Vietnam also warned people to be cautious before buying or selling gold to avoid unnecessary losses due to psychological factors or being agitated by bad people.
Last week the domestic price of gold bullion refined by Saigon Jewelry Co., Vietnam's biggest gold trader and refiner, continued to rise by VND300,000 a tael to VND36.85 million per tael, which equals 37.5 grams.
Given the official foreign exchange rates, import taxes, and other fees levied on gold bullion trading activity, domestic price was some VND4 million a tael higher than the world price.
Since early 2014 the domestic gold market has been quite stable with the difference in the world and local gold price pretty much narrowed down to about VND1 million a tael.
The stability in the gold market is said to be maintained due to the State Bank of Vietnam's gold auctions, which supplied more gold to authorized local banks and traders starting in 2013.
The central bank has launched 76 auctions since the first auction on March 28, 2013.
In the 76 auctions, the highest bidding price was recorded in the first, at VND43.81 million a tael, while the lowest price was in the last, at VND34.65 million per tael.
Through bidding, the State Bank of Vietnam has sold a total of 1.82 million taels of gold billion, equivalent to 69.9 tons.
* * *
Join GATA here:
Porter Stansberry Natural Resources Conference
AT&T Performing Arts Center
Margot and Bill Winspear Opera House
2403 Flora St., Dallas, Texas
Saturday, May 31, 2014
Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 2014
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014
* * *
Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
Buy precious metals free of value-added tax throughout Europe
Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries.
Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world.
Visit us at www.europesilverbullion.com.