Investors have given up the ‘wait-and-see’ attitude, and are beginning to buy gold, pushing the price up.
The gold price on August 6 unexpectedly bounced back to the VND13mil/tael ($812.5) level. Prior to that, analysts still reported that investors were maintaining the wait-and-see attitude, because they were still wavering between injecting money in the stock market and buying gold. The gloomy stock market has prompted investors to withdraw money from the stock market to invest in gold; however, investors remain hesitant to do that.
On August 2, PNJ, Bao Tin and SJC announced the purchasing price of VND12,910,000/tael, while AAA bar gold had the lower price at VND12,890,000/tael. Meanwhile, the selling price was VND10-40,000/tael higher than the purchasing price. PNJ, for example, had the selling price at VND12,950/tael, and SJC at VND12,960,000/tael.
In the world’s market, the gold price has recovered after one week of staying at low levels. At 10.30 am on August 6, gold was traded at $672.5/oz, an increase of $6.5/oz over the last trading session of the previous week.
The gold price in New York has also increased by $6.5/oz (delivery in September) to $683.8/oz.
On the domestic market, PNJ gold was sold at VND13,060,000/tael in HCM City this morning.
Analysts said that the gold price would increase further this week as the result of the world’s increased gold price. International press agencies reported that 17 out of 27 strategists and analysts said in a poll conducted by Bloomberg that they thought the gold price would increase further in the next trading sessions. Only one believes that the gold price could decrease this week, while the other nine said that there would be no big fluctuations.
The devaluation of the greenback occurred after the US made public figures about job creation, which was lower than expected. The number of jobs created in July was the lowest since February.
However, experts from big investment funds in the world have said that the gold price will likely come back to the $650/oz level in August before witnessing new increases at the year’s end.
Source: VNE
Showing posts with label Gold. Show all posts
Showing posts with label Gold. Show all posts
Tuesday, August 07, 2007
Friday, July 20, 2007
Gold prices skyrocket along with global trends
Gold prices in the local market continued to escalate on July 20 as 20,000 VND (1.25 USD) was tacked onto the per tael price that pushed unit prices past the 13 million VND mark.
Sai Gon Jewelry Holdings Co. (SJC)’s 99.99 gold price reflected the spike as it was trading between 13-13.07 million VND per tael in Ha Noi by the morning of July 20.
Domestic gold traders attributed the price hike to an increase in gold prices on the world market that was caused by the slippage of the US dollar and the growing price of crude oil.
In Hong Kong, gold rose by 3.2 USD per ounce from the July 19 trading session to 675.7-676.2 USD per ounce (equivalent to 13.137-13.146 million VND per tael).
Viet Nam’s demand for gold has grown sharply over the past years and now surpasses 70 tonnes a year. In 2006, the country imported 86 tonnes of gold, a year-on-year increase of 41 percent.
According to the Viet Nam Gold Business Association (VGBA), although the volume of gold hoarded by locals remained high, businesses have still splurged hundreds of millions of USD to import gold from abroad.
In a recent move, the association submitted a second request to the State Bank of Viet Nam (SBV) for permission to export ingot gold. Currently, local companies can only import gold and trade on the local market after receiving central bank approval.
”Exporting would help us manage short term output and input more easily,” said SJC general director Nguyen Thanh Long.
Source: VNA
Sai Gon Jewelry Holdings Co. (SJC)’s 99.99 gold price reflected the spike as it was trading between 13-13.07 million VND per tael in Ha Noi by the morning of July 20.
Domestic gold traders attributed the price hike to an increase in gold prices on the world market that was caused by the slippage of the US dollar and the growing price of crude oil.
In Hong Kong, gold rose by 3.2 USD per ounce from the July 19 trading session to 675.7-676.2 USD per ounce (equivalent to 13.137-13.146 million VND per tael).
Viet Nam’s demand for gold has grown sharply over the past years and now surpasses 70 tonnes a year. In 2006, the country imported 86 tonnes of gold, a year-on-year increase of 41 percent.
According to the Viet Nam Gold Business Association (VGBA), although the volume of gold hoarded by locals remained high, businesses have still splurged hundreds of millions of USD to import gold from abroad.
In a recent move, the association submitted a second request to the State Bank of Viet Nam (SBV) for permission to export ingot gold. Currently, local companies can only import gold and trade on the local market after receiving central bank approval.
”Exporting would help us manage short term output and input more easily,” said SJC general director Nguyen Thanh Long.
Source: VNA
Thursday, July 19, 2007
Gold companies ask again for permission to export gold
The Vietnam Gold Businesses’ Association said it has, once again, asked the State Bank of Vietnam to allow enterprises to export gold, which it believes will foster the gold market.
Nguyen Thanh Long, Director General of the Saigon Jewellery Company (SJC), said that gold exports will help balance the supply and demand, and create sources of foreign currencies in a short time.
In fact, gold trading companies once asked the central bank to allow them export gold in mid 2005, but the proposal was not accepted. Just several days ago, on the opening of the SJC’s new workshop in Hanoi, Mr Long, together with the association once again proposed the central bank to allow the exporting of gold.
The gold consumption level has been increasing rapidly in the last few years. According to the World Gold Council, Vietnam wanted more than 70 tonnes of gold a year in the last three years, and the figure unexpectedly rose to 86 tonnes last year, increasing by 41% over the previous year. It is estimated that the demand would be 75-80 tonnes in 2007.
Analysts said that with such a big consumption volume, gold will become ‘dead gold’ (which cannot be put into business and investment) if Vietnam only allows imports, while prohibiting exports. Every year, Vietnam has to spend several hundred millions dollars to import gold. Enterprises have to seek foreign currencies in the country to pay for import deals, while they cannot export gold to get foreign currencies, leading to the imbalance between imports and exports and foreign currency sources.
If enterprises are allowed to export gold, they can make profit from the price gap between the domestic and international prices.
Mr Long said that if Vietnam has a suitable mechanism for gold export, gold can be converted into foreign currencies, while the gold market will be cleared and further developed.
SJC is leading the domestic market in terms of market share and sales. In 2006, SJC’s gold sales reached VND16tril, or $1bil, holding 90% of the market share. The statistics from the General Department of Customs showed that SJC is one of the 10 enterprises which had the biggest imports of gold in the first six months of 2007 with 64 tonnes of gold imports.
Source: VNE
Nguyen Thanh Long, Director General of the Saigon Jewellery Company (SJC), said that gold exports will help balance the supply and demand, and create sources of foreign currencies in a short time.
In fact, gold trading companies once asked the central bank to allow them export gold in mid 2005, but the proposal was not accepted. Just several days ago, on the opening of the SJC’s new workshop in Hanoi, Mr Long, together with the association once again proposed the central bank to allow the exporting of gold.
The gold consumption level has been increasing rapidly in the last few years. According to the World Gold Council, Vietnam wanted more than 70 tonnes of gold a year in the last three years, and the figure unexpectedly rose to 86 tonnes last year, increasing by 41% over the previous year. It is estimated that the demand would be 75-80 tonnes in 2007.
Analysts said that with such a big consumption volume, gold will become ‘dead gold’ (which cannot be put into business and investment) if Vietnam only allows imports, while prohibiting exports. Every year, Vietnam has to spend several hundred millions dollars to import gold. Enterprises have to seek foreign currencies in the country to pay for import deals, while they cannot export gold to get foreign currencies, leading to the imbalance between imports and exports and foreign currency sources.
If enterprises are allowed to export gold, they can make profit from the price gap between the domestic and international prices.
Mr Long said that if Vietnam has a suitable mechanism for gold export, gold can be converted into foreign currencies, while the gold market will be cleared and further developed.
SJC is leading the domestic market in terms of market share and sales. In 2006, SJC’s gold sales reached VND16tril, or $1bil, holding 90% of the market share. The statistics from the General Department of Customs showed that SJC is one of the 10 enterprises which had the biggest imports of gold in the first six months of 2007 with 64 tonnes of gold imports.
Source: VNE
Sunday, July 15, 2007
Warehouse opening a golden opportunity
The opening of another bonded gold warehouse in Ho Chi Minh City is set to put a smile on the faces of domestic importers and foreign suppliers. Located near Tan Son Nhat Airport, the new warehouse will operate under a partnership between the Saigon Jewellery Company (SJC) and Brinks.
It will be used as a secure facility to store gold under customs control.
The bonded warehouse will also provide Vietnamese traders with an ‘all-in’ price for gold, including airport terminal fees, customs clearance, door-to-door transportation (insurance fees included), and other costs relating to the gold import process.
“We have seen the introduction of international gold margin trading along with the opening of the Ho Chi Minh City Gold Exchange. It is clear that Vietnam is already well-known as a gold market in Asia and that demand will be strong in the future,” said Ben Van Kerwijk, country manager of Brinks Vietnam.
According to the World Gold Council, Vietnamese demand for gold over the past three years averaged more than 70 tonnes annually.
In 2006, demand hit 86 tonnes, up 41 per cent over 2005 and is estimated to hit between 75 and 80 tonnes in 2007.
As the international gold market is price sensitive due to global political and economic conditions, local importers have been seeking ways to reduce time and risks associated with price fluctuations.
With the new warehouse, the time required to remove and transport gold will be less than 24 hours, as opposed to the two to three days at present.
“With the bonded warehouse, the import process will take a maximum of one day and all the importers have to do is submit the required documents to the warehouse’ offices and wait for their goods to arrive at their premises,” said Nguyen Huu Thuan, SJC deputy managing director.
“Local importers will no longer need to pay for any incidental fees, as SJC and Brinks will take care of these while negotiating with international gold sellers and Vietnamese customs,” he added.
With the new service, international suppliers will be able to place a large volume of gold into storage in Vietnam in order to meet demand from local importers, who will benefit from reduced gold import prices when suppliers ship large volumes.
“I hope to better support and serve local importers when delivering gold to their premises, particularly now with the continued criminal attacks on gold shops and during gold and jewellery transportation in Vietnam,” said Van Kerwijk.
In addition to gold, SJC and Brinks will offer storage for diamonds, gemstones and jewellery. It will also assist international firms who wish to come to Ho Chi Minh City to exhibit at the annual Saigon Jewellery Show.
Source: VNE
It will be used as a secure facility to store gold under customs control.
The bonded warehouse will also provide Vietnamese traders with an ‘all-in’ price for gold, including airport terminal fees, customs clearance, door-to-door transportation (insurance fees included), and other costs relating to the gold import process.
“We have seen the introduction of international gold margin trading along with the opening of the Ho Chi Minh City Gold Exchange. It is clear that Vietnam is already well-known as a gold market in Asia and that demand will be strong in the future,” said Ben Van Kerwijk, country manager of Brinks Vietnam.
According to the World Gold Council, Vietnamese demand for gold over the past three years averaged more than 70 tonnes annually.
In 2006, demand hit 86 tonnes, up 41 per cent over 2005 and is estimated to hit between 75 and 80 tonnes in 2007.
As the international gold market is price sensitive due to global political and economic conditions, local importers have been seeking ways to reduce time and risks associated with price fluctuations.
With the new warehouse, the time required to remove and transport gold will be less than 24 hours, as opposed to the two to three days at present.
“With the bonded warehouse, the import process will take a maximum of one day and all the importers have to do is submit the required documents to the warehouse’ offices and wait for their goods to arrive at their premises,” said Nguyen Huu Thuan, SJC deputy managing director.
“Local importers will no longer need to pay for any incidental fees, as SJC and Brinks will take care of these while negotiating with international gold sellers and Vietnamese customs,” he added.
With the new service, international suppliers will be able to place a large volume of gold into storage in Vietnam in order to meet demand from local importers, who will benefit from reduced gold import prices when suppliers ship large volumes.
“I hope to better support and serve local importers when delivering gold to their premises, particularly now with the continued criminal attacks on gold shops and during gold and jewellery transportation in Vietnam,” said Van Kerwijk.
In addition to gold, SJC and Brinks will offer storage for diamonds, gemstones and jewellery. It will also assist international firms who wish to come to Ho Chi Minh City to exhibit at the annual Saigon Jewellery Show.
Source: VNE
Wednesday, July 04, 2007
Warehouses to help stabilise gold prices
Last week saw the country’s first two bonded warehouses open, a move that is expected to help stabilise the domestic gold market and drive prices closer to global levels.
Agribank Jewelry Co (AJC) opened a bonded warehouse on June 25 in Ha Noi. Four days later, Sai Gon Jewelry Co (SJC) followed suit in HCM City.
"We expect to reduce processing times for gold imports from two to three days to less than a day, and cut transportation costs from US$1.00-1.10 a tael to $0.60-0.70," says AJC Director Nguyen Thanh Truc.
The gold depositories will also help consumers cut costs by eliminating much of the transportation, customs, and airport storage fees, and reduce interest rate payments on bank loans, says Nguyen Huu Thuan, SJC deputy general director.
In addition, companies will no longer have to transport gold via intermediaries in Hong Kong, Singapore, Switzerland or Japan. Janet Leung, director of Hong Kong-based Securicor, says the bonded warehouses will make gold imports easier to handle and more secure.
Going through intermediaries also requires the use of high cost insurance programmes, which can run as much as $1,500 to ship 100 kilograms of gold.
The warehouses are also expected to stabilise domestic gold prices by adequately managing supply levels. Previously, shortages often caused local prices to trade VND500,000-700,000 ($31.25-43.75) a tael higher compared to global levels, says SJC general director cum chairman of the Viet Nam Gold Association, Nguyen Thanh Long.
The International Gold Council this year estimates that demand for gold in Viet Nam could reach 70-80 tonnes. A Brink’s Viet Nam representative, Ben Van Kerkwijk predicts in the short run demand will accelerate.
Companies are already showing interest in storing gold and other precious metals at the two depositories.
Truc says that Switzerland’s PB Bank and Japan’s Mutsui Group were finalising paperwork to store gold in AJC’s warehouse, while Securicor has already made a deposit.
SJC’s bonded warehouse has drawn interest from international banks including HSBC, Mutsui Corp, Bipelle Group, DBS Bank Ltd and the Bank of Scotia Mocatta, said Thuan. Bipelle, an arm of Banca Popolare Italiana Group, has already finalised paperwork to deposit 1-2 tonnes of gold with SJC.
As importing gold becomes easier, SJC expects to process up to 12,000 taels of gold every five days against the current rate of 8,000 taels in seven days.
A problem, though, is finding adequate insurance coverage. Foreign partners often do not want to use a local insurer.
AJC has solved the problem by allowing Securicor to cover insurance issues by signing contracts with foreign policy providers. This set up limits AJC’s access to foreign partners, says Truc.
The State Bank of Viet Nam approved the creation of bonded warehouses to generate profits for both the private sector and central bank. The difference, though, is depositories have to spend more time concentrating on consumer demands and needs, says Nguyen Dong Tien, deputy central bank governor.
Tien also says the central bank wants to have only a few bonded warehouses instead of creating multiple players, which would be harder to control.
Source: VNS
Agribank Jewelry Co (AJC) opened a bonded warehouse on June 25 in Ha Noi. Four days later, Sai Gon Jewelry Co (SJC) followed suit in HCM City.
"We expect to reduce processing times for gold imports from two to three days to less than a day, and cut transportation costs from US$1.00-1.10 a tael to $0.60-0.70," says AJC Director Nguyen Thanh Truc.
The gold depositories will also help consumers cut costs by eliminating much of the transportation, customs, and airport storage fees, and reduce interest rate payments on bank loans, says Nguyen Huu Thuan, SJC deputy general director.
In addition, companies will no longer have to transport gold via intermediaries in Hong Kong, Singapore, Switzerland or Japan. Janet Leung, director of Hong Kong-based Securicor, says the bonded warehouses will make gold imports easier to handle and more secure.
Going through intermediaries also requires the use of high cost insurance programmes, which can run as much as $1,500 to ship 100 kilograms of gold.
The warehouses are also expected to stabilise domestic gold prices by adequately managing supply levels. Previously, shortages often caused local prices to trade VND500,000-700,000 ($31.25-43.75) a tael higher compared to global levels, says SJC general director cum chairman of the Viet Nam Gold Association, Nguyen Thanh Long.
The International Gold Council this year estimates that demand for gold in Viet Nam could reach 70-80 tonnes. A Brink’s Viet Nam representative, Ben Van Kerkwijk predicts in the short run demand will accelerate.
Companies are already showing interest in storing gold and other precious metals at the two depositories.
Truc says that Switzerland’s PB Bank and Japan’s Mutsui Group were finalising paperwork to store gold in AJC’s warehouse, while Securicor has already made a deposit.
SJC’s bonded warehouse has drawn interest from international banks including HSBC, Mutsui Corp, Bipelle Group, DBS Bank Ltd and the Bank of Scotia Mocatta, said Thuan. Bipelle, an arm of Banca Popolare Italiana Group, has already finalised paperwork to deposit 1-2 tonnes of gold with SJC.
As importing gold becomes easier, SJC expects to process up to 12,000 taels of gold every five days against the current rate of 8,000 taels in seven days.
A problem, though, is finding adequate insurance coverage. Foreign partners often do not want to use a local insurer.
AJC has solved the problem by allowing Securicor to cover insurance issues by signing contracts with foreign policy providers. This set up limits AJC’s access to foreign partners, says Truc.
The State Bank of Viet Nam approved the creation of bonded warehouses to generate profits for both the private sector and central bank. The difference, though, is depositories have to spend more time concentrating on consumer demands and needs, says Nguyen Dong Tien, deputy central bank governor.
Tien also says the central bank wants to have only a few bonded warehouses instead of creating multiple players, which would be harder to control.
Source: VNS
Thursday, June 28, 2007
Vietnam gold trader PNJ to sell $3.7 mln shares
Vietnam's gold trading firm PNJ plans to sell 600,000 new shares, or 20 percent of the company, in an auction next month to raise at least $3.7 million, state media reported on Thursday.
The Ho Chi MinH City-based firm planned to use the proceeds from the auction, reserved for strategic investors, to raise its registered capital to 300 billion dong ($18.6 million), the Saigon Economic Times quoted company officials as saying.
The auction will be held at Dong A Securities Company on July 12.
Shares in PNJ, which plans to list on a domestic stock exchange early next year, have a face value of 100,000 dong ($6.2) but are being traded in the unofficial market at about 1.1 million dong ($68).
The company, whose full name is Phu Nhuan Jewellery Company, said on its Web site (www.pnj.com.vn) it had assets of about 695 billion dong ($43 million).
Source: Reuters
The Ho Chi MinH City-based firm planned to use the proceeds from the auction, reserved for strategic investors, to raise its registered capital to 300 billion dong ($18.6 million), the Saigon Economic Times quoted company officials as saying.
The auction will be held at Dong A Securities Company on July 12.
Shares in PNJ, which plans to list on a domestic stock exchange early next year, have a face value of 100,000 dong ($6.2) but are being traded in the unofficial market at about 1.1 million dong ($68).
The company, whose full name is Phu Nhuan Jewellery Company, said on its Web site (www.pnj.com.vn) it had assets of about 695 billion dong ($43 million).
Source: Reuters
Friday, June 22, 2007
Gold price plunges, dollar skyrockets
Gold has lost VND440,000/tael just in the last few days compared to early May. Meanwhile, the greenback, which keeps revaluating since the beginning of the year, saw sharp price increases in the last few days.
The gold price plunged to the deepest low in the last three months last week in the world’s market. On the morning of June 11, gold was traded at $650/oz in Asia, down by $15/oz from the previous week’s level.
In Vietnam, SIC gold was traded at VND12,800,000/tael on June 11, down by nearly VND200,000/tael over the previous price level.
The price decreases have prompted businessmen and speculators to push up trade. The trading volume at the Saigon gold trading floor made a record on June 11, reaching 9,100 taels, worth VND116bil. Gold traders in HCM City also rushed to place orders to import gold.
A source said that within one week, nearly 10 tonnes of gold have been imported. Some traders ordered a large volume, 500-600kg of gold. The Saigon Jewellery Company (SJC) reported that it now could sell 5,000 taels of bar gold a day, an increase of 50% over the previous days.
As the gold price fluctuates heavily, gold traders can make the fat profit of VND150,000/tael, an analyst guessed.
The gold price began slipping on May 11, when the price slightly decreased to VND12,930,000/tael. After that day, the price keeps decreasing every day. By the end of the last week, the gold price had dropped by VND440,000/tael compared to the highest price level seen in May.
The dollar price has reached the VND16,120/US$1 level, the highest peak so far this year. On June 18, Vietcombank announced the purchasing and selling prices at VND16,095 and 16,130/US$1 respectively, increasing by VND55-68/US$1 compared to one month ago.
In the last few days, commercial banks have been raising the gold purchasing prices in order to buy more dollars to provide to import companies.
In the black market, the dollar price has also been increasing, approximate to the banks’ prices. Though the dollar price increases, the purchasing power from individuals remains unchanged.
Several commercial banks, anticipating the dollar price increases, have decided the US$ deposit interest rates. The Military Bank has raised the interest rate by 0.6%, while Habubank by 0.05-0.5%.
Bankers said that they offer higher interest rates in order to attract more capital in the context of the stronger dollar. The demand for borrowing dollars is increasing from import – export companies.
Analysts said that the higher US$ deposit interest rates would lead to the higher VND deposit interest rates in the coming time, especially when the State Bank of Vietnam has required the higher compulsory reserve ratio, which would make the usable capital lower.
The gold and the dollar prices always go in the opposite ways. According to Huynh Trung Khanh, an expert, the gold price would see another increase wave at the end of this year.
“The VND13,338,000/tael level in April would not be the highest peak of the year,” Mr Khanh said. He added that in the fourth quarter of the year, the greenback may decline in value against other foreign currencies, while the gold price would hit the $700/oz level.
In the world’s market, the gold price has slightly increased on the devaluation of the greenback after the news about the unsatisfactory CPI of the US. However, Eximbank’s experts still forecast that the gold price would see further decreases.
Meanwhile, a banker said that the dollar may decrease in the time to come for two reasons. He said that the dollar price increased because of the higher demand for dollars to make payment for export – import deals.
The VND/US$ exchange rate may see further increase in some days, but it is hardly to exceed the VND17,000/US$1 level as seen in mid 2006.
“The foreign currency reserve at the central bank proves to be profuse, while the overseas remittance is big. The imbalance between supply and demand does not exist, therefore, there would not be sharp price increases,” he said.
Source: VNE
The gold price plunged to the deepest low in the last three months last week in the world’s market. On the morning of June 11, gold was traded at $650/oz in Asia, down by $15/oz from the previous week’s level.
In Vietnam, SIC gold was traded at VND12,800,000/tael on June 11, down by nearly VND200,000/tael over the previous price level.
The price decreases have prompted businessmen and speculators to push up trade. The trading volume at the Saigon gold trading floor made a record on June 11, reaching 9,100 taels, worth VND116bil. Gold traders in HCM City also rushed to place orders to import gold.
A source said that within one week, nearly 10 tonnes of gold have been imported. Some traders ordered a large volume, 500-600kg of gold. The Saigon Jewellery Company (SJC) reported that it now could sell 5,000 taels of bar gold a day, an increase of 50% over the previous days.
As the gold price fluctuates heavily, gold traders can make the fat profit of VND150,000/tael, an analyst guessed.
The gold price began slipping on May 11, when the price slightly decreased to VND12,930,000/tael. After that day, the price keeps decreasing every day. By the end of the last week, the gold price had dropped by VND440,000/tael compared to the highest price level seen in May.
The dollar price has reached the VND16,120/US$1 level, the highest peak so far this year. On June 18, Vietcombank announced the purchasing and selling prices at VND16,095 and 16,130/US$1 respectively, increasing by VND55-68/US$1 compared to one month ago.
In the last few days, commercial banks have been raising the gold purchasing prices in order to buy more dollars to provide to import companies.
In the black market, the dollar price has also been increasing, approximate to the banks’ prices. Though the dollar price increases, the purchasing power from individuals remains unchanged.
Several commercial banks, anticipating the dollar price increases, have decided the US$ deposit interest rates. The Military Bank has raised the interest rate by 0.6%, while Habubank by 0.05-0.5%.
Bankers said that they offer higher interest rates in order to attract more capital in the context of the stronger dollar. The demand for borrowing dollars is increasing from import – export companies.
Analysts said that the higher US$ deposit interest rates would lead to the higher VND deposit interest rates in the coming time, especially when the State Bank of Vietnam has required the higher compulsory reserve ratio, which would make the usable capital lower.
The gold and the dollar prices always go in the opposite ways. According to Huynh Trung Khanh, an expert, the gold price would see another increase wave at the end of this year.
“The VND13,338,000/tael level in April would not be the highest peak of the year,” Mr Khanh said. He added that in the fourth quarter of the year, the greenback may decline in value against other foreign currencies, while the gold price would hit the $700/oz level.
In the world’s market, the gold price has slightly increased on the devaluation of the greenback after the news about the unsatisfactory CPI of the US. However, Eximbank’s experts still forecast that the gold price would see further decreases.
Meanwhile, a banker said that the dollar may decrease in the time to come for two reasons. He said that the dollar price increased because of the higher demand for dollars to make payment for export – import deals.
The VND/US$ exchange rate may see further increase in some days, but it is hardly to exceed the VND17,000/US$1 level as seen in mid 2006.
“The foreign currency reserve at the central bank proves to be profuse, while the overseas remittance is big. The imbalance between supply and demand does not exist, therefore, there would not be sharp price increases,” he said.
Source: VNE
Tuesday, June 05, 2007
Gold price unexpectedly exceeds threshold
The gold price has unexpectedly surpassed the VND13mil/tael ($812.5) threshold. The market has immediately become gloomy due to the overly high prices.
The domestic market saw the gold price dramatically increase late last week, which exceeded the ‘sensitive’ threshold of VND13mi/tael. This is for the first time since May 17 the gold price returned to the VND13mil/tael level. The increase has been attributed to the world’s price increases by $15-16/0z late last week compared to mid week.
On the afternoon of June 3, the gold price listed at the jewellery shops at Ben Thanh market was between VND13,020,000 and VND13,090,000 per tael. The gold price offered by the Saigon Jewellery Company (SJC) on its website was VND13mil per tael. Eximbank’s offered prices proved to be higher than that offered by gold shops, at VND13,100,000 per tael.
However, experts have noted that the quoted price levels did not reflect the real situation of supply and demand as most of bar gold production companies closed for the weekend.
The price hike has made the market quiet. M, the owner of the jewellery shop at Ben Thanh market said that unlike the previous years, people now only purchase gold when the price falls down. She said that she did not receive any clients who sought to buy bar gold in the last two days.
One week before, when the gold price fell down to below VND12,900,000 per tael, the volume of bar gold sold by companies and shops reportedly increased by 20-30%. The gold price decreased on the news that IMF would sell a big volume of gold.However, the trading volume dropped later as soon as the price increased.
The gold price was stabilized in the last two consecutive weeks before at $650-660/oz.
However, the price unexpectedly fell down in the last trading session, soon after the US Government announced the GDP growth rate in the first quarter of 2007, the lowest level since 2002. The greenback has become weaker and devaluated against other hard foreign currencies.
At the same time, US Department of Energy has reported the decline in the oil reserve. The oil price increase and the weaker dollar have both ignited the gold price hike wave.
On the afternoon of June 3, the World’s Gold Council announced the reference price at $671/oz, or $15-16/oz higher compared to two or three days before.
Unlike the domestic market, transactions in the world’s market were very bustling when the price began increasing. The gold price has been continuously fluctuating so far this year, however, it is clear that the deepest lows after every price increase move are higher and higher.
When predicting about the price tendency, Huynh Trung Khanh, Advisor to the World’s Gold Council in Vietnam, said that though the price is on the rise, it is too early to say that the gold price would shoot up in prices. It is not very likely to see the price exceed the $700/oz level.
In a statement released on June 1, the European Central Bank (ECB) has announced it has sold 600 tonnes of gold since the last September and would not sell more gold until this September.
In New York, the gold price has increased by $10/oz in contracts to $670.6/oz for spot delivery contracts, while the contracts for delivery in August saw the price increase of $10.2/oz in the latest trading session. The sharp price increase late last week helped the last week’s price increase by 2.3% over the week before.
Source: VNE
The domestic market saw the gold price dramatically increase late last week, which exceeded the ‘sensitive’ threshold of VND13mi/tael. This is for the first time since May 17 the gold price returned to the VND13mil/tael level. The increase has been attributed to the world’s price increases by $15-16/0z late last week compared to mid week.
On the afternoon of June 3, the gold price listed at the jewellery shops at Ben Thanh market was between VND13,020,000 and VND13,090,000 per tael. The gold price offered by the Saigon Jewellery Company (SJC) on its website was VND13mil per tael. Eximbank’s offered prices proved to be higher than that offered by gold shops, at VND13,100,000 per tael.
However, experts have noted that the quoted price levels did not reflect the real situation of supply and demand as most of bar gold production companies closed for the weekend.
The price hike has made the market quiet. M, the owner of the jewellery shop at Ben Thanh market said that unlike the previous years, people now only purchase gold when the price falls down. She said that she did not receive any clients who sought to buy bar gold in the last two days.
One week before, when the gold price fell down to below VND12,900,000 per tael, the volume of bar gold sold by companies and shops reportedly increased by 20-30%. The gold price decreased on the news that IMF would sell a big volume of gold.However, the trading volume dropped later as soon as the price increased.
The gold price was stabilized in the last two consecutive weeks before at $650-660/oz.
However, the price unexpectedly fell down in the last trading session, soon after the US Government announced the GDP growth rate in the first quarter of 2007, the lowest level since 2002. The greenback has become weaker and devaluated against other hard foreign currencies.
At the same time, US Department of Energy has reported the decline in the oil reserve. The oil price increase and the weaker dollar have both ignited the gold price hike wave.
On the afternoon of June 3, the World’s Gold Council announced the reference price at $671/oz, or $15-16/oz higher compared to two or three days before.
Unlike the domestic market, transactions in the world’s market were very bustling when the price began increasing. The gold price has been continuously fluctuating so far this year, however, it is clear that the deepest lows after every price increase move are higher and higher.
When predicting about the price tendency, Huynh Trung Khanh, Advisor to the World’s Gold Council in Vietnam, said that though the price is on the rise, it is too early to say that the gold price would shoot up in prices. It is not very likely to see the price exceed the $700/oz level.
In a statement released on June 1, the European Central Bank (ECB) has announced it has sold 600 tonnes of gold since the last September and would not sell more gold until this September.
In New York, the gold price has increased by $10/oz in contracts to $670.6/oz for spot delivery contracts, while the contracts for delivery in August saw the price increase of $10.2/oz in the latest trading session. The sharp price increase late last week helped the last week’s price increase by 2.3% over the week before.
Source: VNE
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