Economic expert Ngo Tri Long also said that world gold prices fluctuate and are difficult to predict. As for gold trading units, they usually buy as much as they sell, but they do not speculate in gold. Just like in 2013, the first auctions were always exploratory and cautious, the number of winning bids was not high… so this year’s auction is the same and this is not a surprise.
I believe that gold bidding is only a temporary solution, temporarily solving the immediate demand, but I would like to share with you VietNamNet, Economic expert Dinh The Hien assessed that gold auctions are a safe solution to increase supply, only those who pay a higher price will sell, ensuring the gold price is close to the market price.
However, according to Mr. Hien, buying businesses will also have certain risks, including the case of being able to buy at an auction price lower than the market price.
“At any time, the price of gold can turn down; while the real demand for buying at high prices is still a question mark if the bidding business wins. The difference between domestic and international prices is also still high… Therefore, only businesses with large resources and can count on the source of customers will boldly bid,” Mr. Hien said.
Need to change
If the State Bank still intends to continue bidding, the Vice Chairman of the Vietnam Gold Business Association suggested that the reference price should be SJC’s price the night before or at the beginning of the day, which could be equal to or lower than SJC’s buying price. company.
Along with that, the minimum bidding volume should be adjusted to half as prescribed at the auction on April 23. This will attract more units to participate.
Meanwhile, economic expert Ngo Tri Long noted that it is necessary to see forecasts of the world and domestic economic situation as well as forecasts of gold price fluctuation trends. In particular, it is necessary to know how much gold is currently in demand.
“We should still continue bidding in the coming time, but we need to find out how much demand is there? Each bidding session, the number offered for bidding needs to be calculated more reasonably to attract more participating units. At the same time, it is necessary to regulate the minimum price but also need to regulate the maximum selling price, not selling beyond the prescribed ceiling price when winning the bidding,” Mr. Long said.
However, the expert also said that using bidding methods can only solve urgent problems. Therefore, it is also necessary to consider long-term measures. Accordingly, Mr. Long proposed that the long-term solution is to quickly change Decree 24. At the same time, in addition to managing physical gold, attention should be paid to new account gold, futures gold, gold certificates… in accordance with international practices, reducing price differences and complying with market rules.
